London help-to-buy scheme to launch in February

padington

*Attends to oxygen mask*

TheeMaskedTurnip

mayonnaise wrote: »

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.

Fantastic news. The dream of homeownership should be for all and I salute this new scheme. It's sad that the bitter goons over on HPC wish to deny others their dream home. Pathetic really.

mwpt

TheeMaskedTurnip wrote: »

Fantastic news. The dream of homeownership should be for all and I salute this new scheme. It's sad that the bitter goons over on HPC wish to deny others their dream home. Pathetic really.

Yes, personally I have always wanted my tax money to be used to underwrite high house prices. Sure, our pensions are being stripped, our services cut, and we had to use our tax money to bail out the lenders last time, but it was more than made up for by hard working landlords being able to retire at 40 and contribute back to the economy by buying BMW 4x4s. All part of the big society we live in comrade.

Jason74

It

thequant wrote: »

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 ?

Maybe if you want to sell, you'll need to reduce your price to one that a market without subsidy will accept. Or are you just expecting "somebody else's money" (ie, not money earned by the buyer) to just fall into your lap.

mayonnaise

mwpt wrote: »

Yes, personally I have always wanted my tax money to be used to underwrite high house prices. Sure, our pensions are being stripped, our services cut, and we had to use our tax money to bail out the lenders last time, but it was more than made up for by hard working landlords being able to retire at 40 and contribute back to the economy by buying BMW 4x4s. All part of the big society we live in comrade.

What the hell are you talking about.
There is no cost to the taxpayer.
We even might make a tidy profit on it all.:)
http://www.dailymail.co.uk/news/article-2619432/Help-Buy-scheme-net-government-4-5BILLION-thanks-house-price-boom.html

Graham_Devon

mayonnaise wrote: »

What the hell are you talking about.
There is no cost to the taxpayer.
We even might make a tidy profit on it all.:)
http://www.dailymail.co.uk/news/article-2619432/Help-Buy-scheme-net-government-4-5BILLION-thanks-house-price-boom.html

£4.5bn (possible, maybe) profit is next to nothing when compared to the extra cost of housing benefits and tax credits which come as a result of increased rents (which is in part as a result of HTB which is widely accepted to have increased prices).

The housing benefit bill is rapidly approaching (probably past by now) £30bn per year. It has more than doubled in the last 10 years alone.

You can look at HTB in isolation to make a point but the money all comes from the same pot.

Edit: It's worth pointing out that that £4.5bn is calculated on the assumption that every single house bought under HTB is sold again within 5 years. Rather absurd assumptions going on if you ask me.

mwpt

mayonnaise wrote: »

What the hell are you talking about.
There is no cost to the taxpayer.
We even might make a tidy profit on it all.:)
http://www.dailymail.co.uk/news/article-2619432/Help-Buy-scheme-net-government-4-5BILLION-thanks-house-price-boom.html

My apologies, I didn't realise this would be such a revenue generator for the government. The short sighted fools are only offering 40% loans though, they should be offering 100% and cut out the shyster middle men banks. I foresee a great future ahead comrade.

mwpt

Jason74 wrote: »

It

Maybe if you want to sell, you'll need to reduce your price to one that a market without subsidy will accept. Or are you just expecting "somebody else's money" (ie, not money earned by the buyer) to just fall into your lap.

Comrade, I encourage you to rethink and be careful about your words. Big society is listening.

mwpt

Graham_Devon wrote: »

£4.5bn (possible, maybe) profit is next to nothing when compared to the extra cost of housing benefits and tax credits which come as a result of increased rents (which is in part as a result of HTB which is widely accepted to have increased prices).

I don't believe HTB can impact rents. Rents rise at pretty much standard rates overall, they're not determined by credit or increased buying power from HTB.

Just saying.

Graham_Devon

mwpt wrote: »

I don't believe HTB can impact rents. Rents rise at pretty much standard rates overall, they're not determined by credit or increased buying power from HTB.

Just saying.

They are determined in part by rising house prices though.

HTB is widely accepted (apart from on here, obviously) to have increased house prices.