MSE News: Government unveils plan to help home buyers

This is the discussion thread for the following MSE News Story:

"Buyers wanting a newly-built home with a small deposit will get a helping hand under a Government scheme ..."
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  • edited 21 November 2011 at 12:40PM
    jimpix12jimpix12 Forumite
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    edited 21 November 2011 at 12:40PM
    So much for free market economy... Why is the government propping up the house-building industry or those who choose to buy a house? This makes me so angry, it is a private "investment" with inherent risks. Taxpayer's money is being used to prop up an inflated bubble to keep prices artificially high when they need to come down for the sake of our country.
    "The only man who makes money from a gold rush is the one selling the shovels..."
  • Please amend the title to make it factually correct.

    Government unveils plan to siphon first time buyers to new builds as a result of successful lobbying by building industry.


    Meanwhile, the moving the supply of ftbs to new builds will make life even more difficult for those facing the stressful task of completing a chain to sell their homes.
  • Will this not push new build prices up if builders have to contribute towards this scheme?
  • Graham_DevonGraham_Devon Forumite
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    Part of the Furniture 10,000 Posts Combo Breaker
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    Will this not push new build prices up if builders have to contribute towards this scheme?

    Yup.

    And the government is actively "lending a hand" into sending first time buyers into negative equity from the day they sign, as new builds are always more expensive, due to the fact that they are new.

    Who's going to buy these houses when these people want to move? If FTB's can't afford them, will the government be finding even more money to help find another set of FTB's to buy the house off them 3 years down the line!? Or will the buyer find themselves stuck, in negative equity?

    Not one of these people silly enough to use this scheme will be able to move easily within the next few years unless there is a boom. And we, the taxpayers, will be the ones covering the losses if they default.

    Brilliant. Banks are just wetting themselves laughing at us.
  • No-one will be able to buy them 2nd hand as the next gen of FTB's will have to buy new new builds.
  • Housing market is pretty much all we have left, admits Cameron

    Source: Daily Mash

    THE government is to boost the housing market because there really isn't anything else to do, it has been confirmed.

    David Cameron and Nick Clegg have unveiled a £400m investment to encourage new building and help first time buyers after realising Britain had long since given up on anything that was not ultimately about houses.

    The prime minister said: "This package will help to reinflate the house price bubble and give mortgages to people who can't really afford them. Unless anyone has any better ideas?

    "It's worth remembering that the only reason the British economy seemed successful in the late '90s was because of a house price bubble and mortgages being given to people who couldn't really afford them, so it's not as if we're in uncharted territory.

    "This will definitely work."

    Nick Clegg added: "We calculated that if you strip the housing sector out of the British economy you're left with some Duchy Originals marmalade and footballers paying for threesomes.

    "So until such times as we actually start making things out of metal, we need to support the foundations of our pretend economy with money we don't really have."

    Tom Logan, who has never met anyone with a real job, said: "My father's dying words to me were 'make sure you buy a house you can't afford and fill it with stuff you don't need'.

    houses250.jpg
    If it's broke fix it with the thing that broke it
  • razamrazam Forumite
    131 Posts
    Agree with all the above comments...

    It missing the point by saying the main problem is FTB can't afford deposits - if deposits are a percentage of over-inflated house prices, no wonder it's unnafordable! This scheme does nothing to help FTB, home-owners or even the rental market (which is having a knock-on effect from overpriced houses). The scheme only goes to help home builders sell overpriced new homes, and the banks.

    If the government truly wanted to help FTB, they would re-open the open homebuy scheme again, which allowed houses to be bought on the open market, NOT JUST 'selected' new builds.

    One other things I am coming across (as a FTB) is the unfairness of stamp duty. Stamp duty is 0% under £250k for FTB, which is fine if you live outside london, where there are plenty of 3/4 bed houses under £250k. But in London, it's difficult enough finding a decent 2 bed flat (and by decent I don't mean top of the range), let a alone a 3 bed house under £250k - which what I need for my family.
  • razam wrote: »
    One other things I am coming across (as a FTB) is the unfairness of stamp duty. Stamp duty is 0% under £250k for FTB, which is fine if you live outside london, where there are plenty of 3/4 bed houses under £250k. But in London, it's difficult enough finding a decent 2 bed flat (and by decent I don't mean top of the range), let a alone a 3 bed house under £250k - which what I need for my family.

    I don't see that as unfair, if you can afford 250k then I don't think you need too much extra help, if you can't then London is the wrong place to buy.
  • ManchegoManManchegoMan Forumite
    44 Posts
    Part of the Furniture Combo Breaker
    I don't see that as unfair, if you can afford 250k then I don't think you need too much extra help, if you can't then London is the wrong place to buy.

    250k in most places north of northampton is alot different to 250k in london. Just because the poster is able to afford 250k house doesn't mean he/she is in a good position to not let SDLT bother them.
  • razamrazam Forumite
    131 Posts
    I don't see that as unfair, if you can afford 250k then I don't think you need too much extra help, if you can't then London is the wrong place to buy.

    I'd agree with you if London house prices were reasonable/realistic. But the problem is they're not, which means the the stamp duty 'benefit' for FTB in London is pretty much null & void.

    Saying the solution is to move out of London, is as over-simplistic as the house prices are over-inflated. It also does not actually deal with the problem of reasonable house prices.
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