Wean off from HTB and still build promised amount of new affordable homes

kingstreet

HTB Equity Loan is changing in 2021 and will be restricted to FTBs and will have regional property price caps.

https://www.helptobuy.gov.uk/equity-loan/further-guidance/

Funnily enough, someone else is calling it a scam because the taxpayer is going to lift 20% of the growth in the value of his property and he's not impressed;-

https://forums.moneysavingexpert.com/discussion/6023765

Sailtheworld

AG47 wrote: »

Anyway back on topic, how can they end Help to bubble and still meet the target of new homes added to the supply?

Governments miss targets all the time. New homes being added to the supply is well down the list when it comes to key performance indicators.

I wouldn't worry about it.

AG47

kingstreet wrote: »

HTB Equity Loan is changing in 2021 and will be restricted to FTBs and will have regional property price caps.

https://www.helptobuy.gov.uk/equity-loan/further-guidance/

Funnily enough, someone else is calling it a scam because the taxpayer is going to lift 20% of the growth in the value of his property and he's not impressed;-

https://forums.moneysavingexpert.com/discussion/6023765/help-to-buy-scam

I knew they couldn't wean off HTB and still meet targets.

What will the details be of HTB3? FTBers only and price caps, but what are percentages of the loan and deposit reauired?

triathlon

wymondham wrote: »

If you have a scheme to help people buy things then the price of those things will stay high

And that's bad because?

We also pay close to £30 Billion per year in housing benefit, I personally see this as a good thing and shows what a decent society we are.

triathlon

AG47 wrote: »

Exactly, just the same as if you keep giving a crack addict his Charlie then he will remain a junky

Either he dies or he gets weaned off it.

Will the UK be able to be weaned off the help to bubble 2? Either the problem will be extended with help to bubble 3, or there will be the long awaited correction in property.

Far better to get off the crack

Helping someone live in their own home is like getting them "addicted to crack" :rotfl:
I have walked some dark streets in this world in my lifetime around the world and I can assure you if the worst thing the UK is doing is helping people to live in their own homes then we are doing OK

RealElement47

triathlon wrote: »

Helping someone live in their own home is like getting them "addicted to crack" :rotfl:
I have walked some dark streets in this world in my lifetime around the world and I can assure you if the worst thing the UK is doing is helping people to live in their own homes then we are doing OK

Helping people to live in homes would be great, but help to buy is prolonging the distorted broken property market bubble from correcting,

So HTB is actually preventing people from buying their own homes for a little longer until the correction comes.

triathlon

RealElement47 wrote: »

Helping people to live in homes would be great, but help to buy is prolonging the distorted broken property market bubble from correcting,

So HTB is actually preventing people from buying their own homes for a little longer until the correction comes.

Preventing who from owning homes, you maybe?
There is never going to be a period in time when everyone has the ability or the income to afford their own home, just a fact of life, and today is no different.

You keep talking about a correction as if it is set in stone, how many years or even decades will it take before you grasp that time is not on the side for those that gamble on the housing market

PasturesNew

Many who bought H2B are now saddled with it as they didn't understand and/or their circumstances changed.

Can't sell, as can't get a house as good for 80% of the value.
Can't remortgage/buy the whole lot as the Govt's 20% has increased in value.
Change of circumstances likely as mostly sold to FTBs who then popped out 2 kids in that first 5 years.

The only people who can move "up" from a FTB H2B house will be those who had a career (not a job) on a good rising scale and who didn't have kids and/or whose houses didn't increase in value in the first five years.

Trapped.

RealElement47

PasturesNew wrote: »

Many who bought H2B are now saddled with it as they didn't understand and/or their circumstances changed.

Can't sell, as can't get a house as good for 80% of the value.
Can't remortgage/buy the whole lot as the Govt's 20% has increased in value.
Change of circumstances likely as mostly sold to FTBs who then popped out 2 kids in that first 5 years.

The only people who can move "up" from a FTB H2B house will be those who had a career (not a job) on a good rising scale and who didn't have kids and/or whose houses didn't increase in value in the first five years.

Trapped.

It's 40% in London

bhughes1986

Used HTB twice. Sold our first house with a profit, paid 20% of the sale price back to HTB. Personally, I can't see the problem. Second home, we used it again as in the regions of the UK we moved to (SW), we didn't like any of the houses/areas we saw that were 'non HTB' i.e. non new builds. Currently overpaying so that at the 5 year point, sell or keep, we will be able to pay off HTB and take a big chunk with us for somewhere else.

Taking a holistic view, I think that the entire property market is screwed. The only way we will get ourselves (as a country) out of this mess is if wages increase to make larger mortgages more affordable. Alternatively, house prices may stagnate long term, allowing wages to catch up.