Labour plans for FTB ISAs

someone

I think the key thing is there should be no detrimental meddling once the FTB ISAs launch (to either the bank offering the product or the FTB depositing money).

The current FTB ISA arrangements seem a bit odd and could lock consumers into poor products (is a 0% ISA possible?) if their circumstances change. These amendments from labour might turn poor products into even worse products.

colsten

someone wrote: »

The current FTB ISA arrangements seem a bit odd and could lock consumers into poor products (is a 0% ISA possible?) if their circumstances change.

0% savings accounts are unusual but wouldn't be impossible. In several nearby countries (Switzerland, Denmark, Germany), even negative interest rates are now on offer.

A lock-in would not need to be feared as it's supposed to be an instant access ISA. Which in itself casts further doubts on how anyone could seriously suggest the money can be used to fund new houses.

I have just come across some very recent words from Neil Woodford - spoken in a slightly different context but nicely applicable to the Labour plan for these ISAs:

At a time like this, often good politics is bad economics and that worries me. You have to remain particularly vigilant about what’s being said and ultimately take a view about what is implementable and what isn’t.

Cyberman60

themanfromamarillo wrote: »

Frankly the whole HTB ISA scheme is daft government manipulation of the housing market. At least this (and the original, new-build HTB scheme) are trying to solve the supply problem of housing rather than jacking up demand. Although frankly the 125k new homes is puny compared to the massive number of new homes that need built. None of the major parties are proposing anything like a suitably bold solution to the housing crisis.

The HTB ISA is purely a way of helping first time buyers save to buy a house by offering an extra 3K for every 12K saved......effectively just giving tax relief. It takes a long stretch of the imagination to call that 'manipulation of the housing market'.

Cyberman60

Glen_Clark wrote: »

There is only one way to alleviate the housing crisis - ease planning restrictions and let us build more houses. Builders would soon stop hoarding their land banks because rising building land prices would no longer be guaranteed by the Government restricting the supply.
.

Simply untrue. Stop such high demand for housing by controlling immigration. Vote UKIP. :T

Cyberman60

Archi_Bald wrote: »

Sorry, can't help with any clarification. But I am horrified by the statement that Labour would instruct banks on how they need to invest these savings.

If I was a bank/BS, I would

1. not offer any of these ISAs, on the grounds that it would cost me too much to administer them
   
   
2. instead offer first time buyers savings accounts with attractive interest rates / incentives if they take out a mortgage with me. Same sort of accounts that some building societies have been offering for some time.

Indeed, Labour just want to meddle in everything and we know their track record on :

Final Salary Pensions
Gold reserves
House information Packs
Bank of England regulation
Devolution
Wars

etc :rotfl:

masonic

Cyberman60 wrote: »

The HTB ISA is purely a way of helping first time buyers save to buy a house by offering an extra 3K for every 12K saved......effectively just giving tax relief. It takes a long stretch of the imagination to call that 'manipulation of the housing market'.

The recipient of the tax relief will be the person selling (and the mortgage provider), not the person buying. Buyers will be able to afford to pay more and will therefore property prices will go up to absorb the extra money.

Archi_Bald

Cyberman60 wrote: »

Simply untrue. Stop such high demand for housing by controlling immigration. Vote UKIP. :T

Hard to grasp for the Kippers that your xenophobia doesn't build houses but it would cripple the NHS and many farmers.

NICHOLAS_2

i thought you could withdraw money from the htb isa anytime? So how will they be able to tell if people start using them and then need access to the money.

Plus, how would it work with regards to the government top up if you withdrew and then put money back in?

Cyberman60

Archi_Bald wrote: »

Hard to grasp for the Kippers that your xenophobia doesn't build houses but it would cripple the NHS and many farmers.

Another myth. People that are still needed will be allowed in under an Australian points-based system. We don't need to let the rest of the world in just to get a few more nurses. :rotfl:

Allowing 300K people in every year will cripple the NHS, as it is doing already !!

200K immigrant people signed on with GPs last year.

Cyberman60

masonic wrote: »

The recipient of the tax relief will be the person selling (and the mortgage provider), not the person buying. Buyers will be able to afford to pay more and will therefore property prices will go up to absorb the extra money.

That sounds like a load of ........

... because the full details are not even released yet. :rotfl: