New Labour First Time Buyer Help Proposed

GDB2222

https://forums.moneysavingexpert.com/discussion/comment/82150723#Comment_82150723

There’s quite a bit of regional variation. London prices are down roughly 10% over the last 5 years. Within that statistic there are significant variations within London, and within property types.

jaybeetoo

Housebuilders are delighted. My 25 year old son, not so much. As he spotted straight away that you’ll go straight into negative equity when you buy the new house.

Scot_39

The time limited free loan is what concerns me most.

As I know some who struggled after a few years - as the fee on iirc c5 yrs free equity loan increased - inflation plus iirc.

After last scheme - even the govts IMO rosy report - noted many simply didnt understand the deals and the future financial liabilities.

The fact that builders shares like TW opened up 15% this morning - show who markets think are likely to benefit.

QrizB

The fact that builders shares like TW opened up 15% this morning - show who markets think are likely to benefit.

Well, quite.

I cam here to share this from the business pages:

UK housebuilder stocks are flying this morning as investors rejoice at a new homes scheme for first-time buyers in England.

Shares in Barratt Redrow have surged 14%, making it the best performer across the FTSE 100. Housebuilders are dominating the FTSE 250 index too, with Vistry, Persimmon, Taylor Wimpey and Bellway all up between 14% and 16% this morning.

And:

Shares in building material suppliers are also joining housebuilders in their market rally this morning – brick-maker Ibstock has jumped 21%, while Marshalls, which makes hard landscaping and building products, is up 12% this morning.

Construction material suppliers Forterra and Breedon are up 14% and 9% respectively. Topps Tiles is up 6%.

So yes, the markets think this is going to benefit the developers.

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/82151152#Comment_82151152

and it's very difficult to know when you first start in what financial position you'll be in, in 5 years, and how expensive things will get, job losses and relying on a single income, new babies and all. Most FTBs are new to everything and the hope of owning a home can be cloudy. Being put in a negative equity makes even a "try and sell if failed" even worse.

Gov's version of a loan shark.

whaleroad

Sticking plaster policy #657 that will help a small number of people buy, so they can wheel them out at election time, without doing anything to address the underlying problems.