The government will now GIVE you 20% of your deposit

theEnd

Sounds like a pointless headline grabber.

Let's come back in 5 years and see who's filled and used these. I'll guess less than 50. The amount given out will be a fraction of the cost of the scheme, like a whole heap of HTB type schemes Labour setup.

stator

Killerseven wrote: »

So what has the title got to do with this £3000 after 5 years of saving £200mnth?

How is the gov giving you your 20% deposit? Are you talking about buying a house for £60K in 5years time? That would make the gov giving you £3K the 20% deposit if an average house will be £60K by then.

If you look closely you'll see the title says give you 20% OF your deposit. Not your 20% deposit. Sneaky words he should work in advertising :rotfl:

Jason74

Graham_Devon wrote: »

Not as good as it first sounds then. £3,000 isn't anything to be sniffed at, of course, but if it takes 5 years to get the full 3k, seems almost not worth it.

Most I would expect to receive a maximum of a grand.

True. But with so many of these things, the issue is the perception. You can just see the Daily Express headline tomorrow "Osborne helps young homebuyers" followed by an article about how this will be "positive" for housebuyers. The result will be people will believe it regardless of the facts, providing a "boost" to the market.

It's a shame, not least as it gives more credence to the lie that the problem is people's inability to meet current house prices, rather than the house prices themselves. I note absolutely nothing in the budget that might deal with that problem.

Killerseven

These crazy schemes are getting more desperate, I wonder what the latest will be this time next year. Maybe, for every pound you save for your deposit the gov will add another pound, then you only need 5% deposit and the gov will give the developer 50% interest free for 5 years, plus a fancy ribbon on your new home!!!!!!

Anything to keep these high prices from crashing.

setmefree2

Jason74 wrote: »

It's a shame, not least as it gives more credence to the lie that the problem is people's inability to meet current house prices, rather than the house prices themselves. I note absolutely nothing in the budget that might deal with that problem.

Or maybe they see the problem as young people's inability to save and they are trying to do something about that.

Just sayin'.

TheBlueHorse

luckbox wrote: »

Will this cause a slight stagnation in the lower end of the market where people with enough deposit to buy today, thinking, hold on a few more months and we have a chance of 3K more.

and the price of the property will have gone up £6k

Graham_Devon

theEnd wrote: »

Sounds like a pointless headline grabber.

Let's come back in 5 years and see who's filled and used these. I'll guess less than 50. The amount given out will be a fraction of the cost of the scheme, like a whole heap of HTB type schemes Labour setup.

That's a good point actually.

I wonder how much will actually be used to buy a house vs how much it costs to run the scheme. It's not just running the scheme, its designing it and setting it up. These people won't be on minimum wage, so it will have cost a fortune already.

I can imagine a lot of people will start these ISA's and see the money starting to drip in. How many then go on to use it for a house is anyones guess. They may get a large car bill or something and take money out.

Another thing is, how does the money come in? Wonder if you actually see it in your balance, or see it as a written figure? Will it update monthly, or yearly?

stator

setmefree2 wrote: »

Or maybe they see the problem as young people's inability to save and they are trying to do something about that.

Just sayin'.

The way to solve that problem would be to regulate rent prices

Physics

Expected to cost £835m a year by the end of the scheme.

Quite a bit.

setmefree2

stator wrote: »

The way to solve that problem would be to regulate rent prices

Then the quality of rented property would be rubbish (like it was in the 80s) because people would'nt be incentivized to become landlords.