Government announces sweeping homeownership reforms

MSE_Kit

Sweeping plans designed to get more people onto the property ladder have been announced by the Prime Minister today (9 June). It comes as homes now cost nine times people's incomes, according to the Government, with first-time buyers able to afford monthly mortgage payments but not deposits. 

Read the full story:
'Sweeping plans designed to help people onto the property ladder announced by the Prime Minister - here's what you need to know'

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aoleks

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

annette78888

Does this me that me as a homeowner that is currently on tax credits as a single parent will now be able to claim help with mortgage costs ?  Im a low earner of 4 kids struggling 

Jaded2022

aoleks said:

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

More like desperate attempt to prop up the nine times income house price bubble 

aoleks

Jaded2022 said:

aoleks said:

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

More like desperate attempt to prop up the nine times income house price bubble 

I didn't say it's a good thing, but giving a large number of people the possibility to buy a house in the next year (when does this policy come in?) will likely push prices up by another 5-10%. it's good news for those on the ladder who can leverage that to secure better long-term rates that will allow them to ride the wave of inflation until it comes back down, not so much for first time buyers.

Jaded2022

Jaded2022 said:

aoleks said:

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

More like desperate attempt to prop up the nine times income house price bubble 

Can anyone explain this new change?

”You'll be able to use housing benefit or the housing element of universal credit to contribute towards your mortgage. This money currently goes to private landlords or housing associations, but the Government says it's looking to change the rules to enable 1.5 million working people in receipt of housing benefits to put this towards a mortgage for their first home.  ”


how how is that different what has changed?

aoleks

Jaded2022 said:

Jaded2022 said:

aoleks said:

hmmm... why do I have the feeling we're yet to see another huge spike of house prices?

More like desperate attempt to prop up the nine times income house price bubble 

Can anyone explain this new change?

”You'll be able to use housing benefit or the housing element of universal credit to contribute towards your mortgage. This money currently goes to private landlords or housing associations, but the Government says it's looking to change the rules to enable 1.5 million working people in receipt of housing benefits to put this towards a mortgage for their first home.  ”


how how is that different what has changed?

people with a mortgage, unlike those renting, are not currently able to claim any housing element. this makes a lot of people on a low income, but with a mortgage, ineligible for universal credit. the housing element is a huge chunk of the entire entitlement, without it you don't need a lot of income to lose your entitlement. it's a huge change, not sure how it's going to work...

CB1968

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

aoleks

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

CB1968

aoleks said:

CB1968 said:

What about the long-term disabled, who have a lifetime of housing benefit payments and have to live with the continual risk of losing their home, because the landlord decides to sell, or simply no longer wants to lease a property to benefits claimants because of perceived problems?

I don't know, but this question is completely unrelated to the announcement today. what you asked about can happen anytime, even now, the changes announced won't change that.

Considering the announcement makes provision for those in receipt of housing benefit but in work and seeks to channel state funds into buying houses rather than paying landlords, I think my post is absolutely pertinent. I'm sorry if you do not.

annette78888

i hope this helps me.  I have 4 children in a tiny 3 bed house I purchased before I had them.  One child is disabled and three boys are squashed in one room as I cant afford to move or re-mortgage to extend.  This would help me so much as long as they allow existing owners to be helped by this.