David Cameron: Generation Rent will become Generation Buy

daveyjp

The market decides where and when houses get built, planning is a sideshow.

Unfortunately in too many areas the end value of property does not cover the cost of development. Until this is addressed sites with planning permission will remain vacant.

wymondham

Let interest rates go to 15% again, that will get houses down to a value more people can afford??

cells

daveyjp wrote: »

The market decides where and when houses get built, planning is a sideshow.

Unfortunately in too many areas the end value of property does not cover the cost of development. Until this is addressed sites with planning permission will remain vacant.

this isnt true if you look at the build rates by council its clear the ones that give a larger quota get more new builds almost irrespective of local prices

Marktheshark

More wheels for the mice.

Graham_Devon

Bit more detail...

The price of the "starter homes" after the discount is applied will be capped at £250,000 and £450,000 in London - and those who buy them will be prevented from selling them for a quick profit under the new policy, which aides say will provide 200,000 new homes by 2020.

Buyers will be prevented from selling them on for up to five years.
Fears the latest extension of the scheme would simply lead to a boom in "buy-to-let" properties were dismissed by Mr Cameron's aides, who said first-time buyers would not be able to get the kind of mortgage needed for property speculation.

Starter homes capped at 250k, AFTER the discount has been applied?

So basically these "starter homes" will, at maxiumum, be equivalent to a 340k new build.

In London, however, it will be the equivalent of £550,000 home.

These don't really sound like "starter" homes to me? I realise that's the cap - but still, surely that cap is way above what would be classes as a starter home?

I note that anyone buying them will also be trapped and unable to sell them for 5 years. I know I'd personally be put off by that.

What I don't really understand though it's what's to stop a builder simply saying "this house would have been 200k, but with the discount it's now 160k....when infact it's the same house that was demanding 160k 6 months previous?

As by building these "starter homes", the builders can axe the "affordable" homes, it looks like there could be a snide attack going on here against housing associations.

chucknorris

wymondham wrote: »

Let interest rates go to 15% again, that will get houses down to a value more people can afford??

Won't their mortgages tend to be quite high? That's one factor some people tend to overlook when they look back at historic house prices. They sometimes don't check to see what the base rate was and how it might have made mortgages less affordable.

Thrugelmir

stator wrote: »

Typical Torries. Their solution to the problem is to con young people into taking on a life time worth of debt for a pile of bricks and mortar that is a glorified matchbox.

If they cannot buy them then they'll up renting the same properties. So at least a step in the right direction.

Maybe a matchbox but like a lot of us. Many started with what we could afford then progressively moved up the ladder.

Little point in blaming the Government when the opposition has no coherent policies at all..........

cells

wymondham wrote: »

Let interest rates go to 15% again, that will get houses down to a value more people can afford??

15% interest rates were not sustainable then and they crashed towards 5%

The most realistic case I can think of is bank rate at 4% resulting in mortgages at 5-6% which is enough to slow house price growth but it wont cause a crash in prices

Garethgrew

wymondham wrote: »

Let interest rates go to 15% again, that will get houses down to a value more people can afford??

There will have to be some government intervention to stop record numbers of repossessions.

Instead of billions in housing benefits there will be some sort of mortgage benefits for those who can't afford the 15%

the_flying_pig

wymondham wrote: »

Let interest rates go to 15% again, that will get houses down to a value more people can afford??

the country is now very badly addicted to/dependent on ZIRP. I am not holding my breath waiting for an increase to anything remotely resembling long-term averages.