New Labour First Time Buyer Help Proposed

Scot_39

Bit vague on details but

https://www.bbc.co.uk/news/articles/cv8e33gdw17no

SarahB16

https://forums.moneysavingexpert.com/discussion/6684648/new-labour-first-time-buyer-help-proposed

Thank you for sharing this.

We all know the rules on here, so if we can all, myself included, avoid any political discussion, this thread hopefully won't get deleted as it would be really good to hear what we think of this.

Jemma01

I wonder if 'young ppl' are finding this helpful, or found the former schemes helpful.

Loading young ppl with even more debt with hardly any budget handling education and debt avoidance

poseidon1

In places like London, flats were/are pretty much the primary option for 1st time buyers.

However England's horribly dysfunctional leasehold system ( especially in London) has in my view produced an intinsically flawed housing situation, which no amount of tinkering with first buyers incentives and assistance can really overcome.

https://www.mylondon.news/news/zone-1-news/london-already-moving-away-leasehold-34673806

As the article indicates developers are already moving away from building new leasehold properties for sale and focusing on different models to deliver profits such as buy to rent, student accommodation, co living and sheltered housing for oldsters. Certainly, that is clearly the trend in my part of S.E. London.

Best that can be said of the announcement is that it is likely to prove worthy but empty words.

GDB2222

This is fine as long as house prices power ahead.

To qualify for the scheme FTBs need to buy new build properties with a new build premium added to the price - typically 10%. Yet, they'll be putting down deposits as low as 2.5%. So, they will be in negative equity pretty from the word go, hoping that house price inflation will bail them out. That's okay if they can afford to wait long enough.

Grumpy_chap

If I read the article correctly, it will only ne new build properties that are eligible for this new form of FTB support. There is a lot of detail not in the article - I suspect that detail has not be announced yet. Maybe it will become clearer after the budget.

strawb_shortcake

I don't really know much about the previous HTB scheme but it sounds fairly similar.

But as @GDB2222 says it'll be fine if house prices power ahead, which I guess it did whilst HTB was in place, is there any modelling to show the affect on FTB in the event house prices drop?

My eldest will hopefully be buying in the next couple of years with their partner, most likely in Wales, their plan is to use the LISA to save a £20-30k deposit within 2-3 years between them (noting there may be changes next year) but I think their plan seems more sensible than putting only a 2.5% deposit down. I also think they'd prefer an older property anyway.

QrizB

This isn't support to FTBs, it's indirect support for house prices and house builders.

If FTBs can't afford houses, house prices need to come down. That's simple supply-and-demand economics; you can't sell things that your buyers can't afford.

"Helping" FTBs afford overpriced houses just means houses remain overpriced.

Scot_39

I'll reserve judgement - but share those very concerns - based on numerous schemes "meddling" in the market under both parties.

Shadyocuk

My view is that it is utter madness.

The biggest problem the UK faces is the cost of housing , the solution is not to try and prop up the current costs!!!

Marvel1

Applies to Engalnd only