London help-to-buy scheme to launch in February

mayonnaise

A government scheme offering homebuyers in London loans of up to £240,000 to help them buy new-build properties will go live on 1 February.

Help to buy London is an extension of the equity loan scheme that has been available to buyers around the country since April 2013, which doubles the amount of money being offered from 20% of a property’s purchase price to 40%.

http://www.theguardian.com/money/2016/jan/12/london-help-to-buy-scheme-launch-in-february

Good to see the government addressing the needs of first-time buyers in London also.

mwpt

Ok, I'll try be positive for once. The good side of this is that it is for new builds only, so sends a signal to builders to build. There, I did it.

Ok, back to my usual cynical self:

Boulger said buyers who were able to raise large enough deposits would effectively be able to double the amount that they could spend, while keeping their monthly repayments at the same level.

Do you have any opinion on what this increase in effective demand will do to prices?

westernpromise

So builders will be putting their prices up then, fairly predictably.

Why limit it to just new build? If it applied to all properties, FTBs would be able to bid for anywhere. As it is they're only being subbed to buy a small portion of the available supply.

thequant

mwpt wrote: »

Ok, I'll try be positive for once. The good side of this is that it is for new builds only, so sends a signal to builders to build. There, I did it.

I'll be negative for once, as it new builds only. It will mean these properties will be overpriced, even if not overpriced will still lose value initially due the the new build premium.

I can see the clueless generation rent making some bad choices, especially as it someone else money which they have been expecting all along.

Ultimately if these people make bad financial choices, how are they going to build up the equity required to move into the normal housing market and be able to buy my property when I come to sell ?

mayonnaise

thequant wrote: »

I'll be negative for once, as it new builds only.

HTB1 also was new builds only. HTB2 came along barely 6 months later extending it to existing homes.
I expect a similar expansion to London HTB in the not so distant future. Watch this space.

Graham_Devon

Doing more of the same and expecting a different outcome is a sign of insanity.

Generali

Graham_Devon wrote: »

Doing more of the same and expecting a different outcome is a sign of insanity.

What is this the same as do you think?

System

*straps self in*

Graham_Devon

Generali wrote: »

What is this the same as do you think?

Same as the previous scheme, just extending the amount.

thequant

mayonnaise wrote: »

HTB1 also was new builds only. HTB2 came along barely 6 months later extending it to existing homes.
I expect a similar expansion to London HTB in the not so distant future. Watch this space.

I Hope so!!

mwpt

thequant wrote: »

I Hope so!!

You are not quite being a big enough !!!!. Up your game please.