Boris pledge to offer 30% discount to local first time buyers?

homeless9

The-Joker said:

Yes so where are the details

No more info since the pledge

Was released 2 days ago:
https://www.gov.uk/government/news/government-to-cut-the-cost-of-new-homes-by-a-third

I give up, I really give up with this country and housing.
It's a scheme for Police, Armed Forces, Teachers, Nurses.....

So now it's going to be even harder for first time buyers to buy a property who don't work in these areas. In my town the only things that get built here are Retirement Homes, apartments for Affordable Rent or Shared Ownership. The only 1 bedroom apartments that get sold on the open market are in the wealthier areas, where posh looking buildings are built and the 1 bed apartments are £350,000 each.

Where are the 1 bedroom apartments for first time buyers to buy on the open market and avoid the expensive Shared Ownership scheme and get that first foot on the ladder?

Now they are going to take another % of new build houses away from sale to many first time buyers with this First Home scheme.

These ruddy schemes make it harder to get on the ladder if you want to own 100% of your property. If these schemes didn't exist I'd be able to buy a 1 bedroom apartment on the open market, possibly cheaper due to these schemes apparently increasing prices.

Why can't they just give all first time buyers 10-20% discount off market value, but the buyers have to sell at 10-20% under market value when they move. And scrap Help to Buy and Shared Ownership. Seems more logical to me.

lisyloo

Crashy_Time said:

lisyloo said:

Thrugelmir said:

The-Joker wrote: »

Yes so where are the details

No more info since the pledge

What's the rush?

My guess is that there is no other strategy to buy a home, hence relying on a handout or virus or some other black swan.
personally I’m a fan of having a strategy or two.

Most people who bought years ago and rely on new borrowers for their high house valuation are it seems...?

I disagree (surprise).
most of us bought a home which we paid for over 25 years and live in for 60 (not necessarily the same one obviously)
we are not looking to “milk” it or “get rich quick” or take advantages of bubbles or others distress. 
its simply about buying a place to live in the most sensible way.
i think you’re harbouring a misunderstanding about this and “most people”.
this time to “milk it” or “get rich quick” has gone
most people are not looking to make money, they are looking for a safe home.

paying for 25 years and getting 60 is a great way to do this which is mathematically plain and obvious
you don’t need capital gains to make it worthwhile

In what way would I be relying on a high house house valuation if say I’m financially independent at retirement via a pension? Please answer that to justify your comment. Most retirees are not reliant on their home valuations in any way.

I expect to downsize at some point but if my current home drops the new one will drop too. Yes there will be less equity released but so what? I’ve had 30 rent free years so I’ve already had more than My “money’s worth”.

Thrugelmir

Norman_Castle said:

The-Joker wrote: »

Yes so where are the details

They're in a folder marked "Bullsh!t"

Seems as if the Civil Service has been busy. Announced Friday.  
https://www.gov.uk/government/consultations/first-homes

Getting_greyer

That consultation asks some good questions.  It appears as if this pledge is being taken seriously.  

silvertooth

I understand they didn’t sit until for brexit 

well thats sorted now

release the details already, how will this work?


when will it start?

silvertooth

When are the tories going to tell us the details?

we don’t even know when the 30% discount will start let alone the exact details of it

Linton

The whole scheme is economic nonsense.  It wont create new houses. All it will do is enable some people to buy a house that they previously could not afford.  But this will cause prices to rise so that about the same number of people who previously could have afforded the house but are not eligible for the scheme will no longer be able to.

Getting_greyer

Consultation finishes 3 Apr 20.  So probably a couple months to digest expert and public opinion. Couple of months to consider the maximum amount of political capital to be gained.  Which means a rollout some time in 2024.  

Though a new administration wants to be seen to be cracking on so who knows.

Getting_greyer

The thing that I find interesting is that they are considering writing off the 30% if banks need to take possession. In this case say a home bought for 210k ( 70% value) with a 30k deposit. Does the bank offer the ltv on 210k or 300k.

Thrugelmir

Getting_greyer said:

The thing that I find interesting is that they are considering writing off the 30% if banks need to take possession. In this case say a home bought for 210k ( 70% value) with a 30k deposit. Does the bank offer the ltv on 210k or 300k.

There'll be some fund of levy imposed as there is on HTB to build a contingency fund/ offset the exposure.