40% London HTB scheme

mwpt

http://www.standard.co.uk/news/london/15000-london-renters-in-help-to-buy-stampede-a3175361.html

Thousands of frustrated renters have joined a stampede to secure loans from George Osborne’s new London-only homebuying scheme in its first week, the Evening Standard has learned.

The huge response from more than 15,000 first-time buyers desperate to clamber on to the housing ladder is far bigger than expected and comes just seven days after the Help to Buy London initiative was launched.

<snip>

The last scheme of 20% didn't seem to get much take-up but the increase to 40% tax payer backed interest free loans does seem to have worked. Groin thrust time for the builders.

padington

HTB 2 will be 50%. HTB 3 will be 60% and up and up house prices will go and more and more UK governments will forever be franchised to keep the whole HPI show on the road.

One solution is to allow the housing market to continue its forever path but allow a new market place ' community land collectives' to develop where owners never benefit from the real market rises because they don't own the land.

My partner is part of one in Canada where they do own the land but it has to stay part of the collective. You can move if you want but people only tend to rent their place out, people never sell because they won't get much for it. The upside is really strong communities get developed. Every house is linked to one person or a family. All reponsibility goes back to them or their family forever.

Graham_Devon

mwpt wrote: »

http://www.standard.co.uk/news/london/15000-london-renters-in-help-to-buy-stampede-a3175361.html



The last scheme of 20% didn't seem to get much take-up but the increase to 40% tax payer backed interest free loans does seem to have worked. Groin thrust time for the builders.

I'm not surprised. I've seen an advert on TV for it and it's simply appauling - making out you are getting gifted 40% of the house. The advert prays on your "dreams" because you, as a super-loved up couple deserve it so much. Anything that gives that impresseion is going to be overrun by enquiries as to how the scheme works.

I wouldn't like to hazard a guess as to how many of those 15,000 turn an enquiry into a purchase.

System

I'm gonna stick my neck out and here and suggest your average HTB enquirer is well aware they aren't being given a 6 figure sum for nothing.

mwpt

Joeskeppi wrote: »

I'm gonna stick my neck out and here and suggest your average HTB enquirer is well aware they aren't being given a 6 figure sum for nothing.

Sure, but look how many people have gone in for the scam of shared ownership and that tells you there are some pretty uninformed people around.

mayonnaise

mwpt wrote: »

Sure, but look how many people have gone in for the scam of shared ownership and that tells you there are some pretty uninformed people around.

I strongly believe shared ownership will be the next misselling 'scandal'.
The numpties who signed up for it will claim because there's 'own' in the scheme title, they didn't expect to be sold a part rent/part short term lease trap.

thequant

Joeskeppi wrote: »

I'm gonna stick my neck out and here and suggest your average HTB enquirer is well aware they aren't being given a 6 figure sum for nothing.

Plenty of people out there at the moment trying claim they were miss sold interest free mortgages and claiming they didn't realise they would have to pay the principle back at the end.

Won't be long, before there are people claiming that they thought the government was giving away 40% of million pound houses for free.

MARTYM8`

Joeskeppi wrote: »

I'm gonna stick my neck out and here and suggest your average HTB enquirer is well aware they aren't being given a 6 figure sum for nothing.

The HTB enquirer is not getting the six figure sum - the developer is.

Instead of being able to charge £400,000 for a studio flat they can now charge £480,000 - with us taxpayers covering the difference.

The purpose of these schemes is not really to help first time buyers - its to keep house prices high and the shareholders of banks and developers happy.

Carl31

Whats to stop successive governments selling on that debt later on to someone who whacks a higher rate on it? is there any guarantee they wont?

mayonnaise

Carl31 wrote: »

Whats to stop successive governments selling on that debt later on to someone who whacks a higher rate on it? is there any guarantee they wont?

What's to stop your bank selling on your fixed mortgage to someone who whacks a higher rate on it?

Come on Carl, don't be silly.

TheeMaskedTurnip

Good to see more young couples getting the chance to enjoy the dream of homeownership.