Wednesday, Jul 16, 2008
Fiddle - Nero - Burns - Rome
BBC news: 'Rent now buy later' housing plan
They've let this one creep out, are they embarrased? A brilliant system where you start renting a property whose value is falling month on month and eventually buy it for more than it's worth. "They would have an option to buy 25% or more of the property at any time under the scheme, called Rent to Home Buy." Not sure how this system works during a House Price Crash, probably doesn't, was designed when property was always going to go up. "The government hopes that this scheme - only available in England - alongside others will help 75,000 first-time buyer households on to the property ladder." Alongside others? Great journalism BBC, just how many people is this system supposed to help?
Posted by nooneo @ 11:59 AM (1422 views) Add Comment
29 Comments
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1. george monsoon said...
What an ill thought through scam..
I can only see the most gullible people falling for this nonsense, and no, it can't work in a crash..
2. drewster said...
Even the Beeb can't resist a dig at the government:
"Using the Department of Communities and Local Government's own house price figures, £200m would buy 916 average priced homes."
Seriously though, how is this any different from providing council housing? People rent first with the option to buy later. The only difference here seems to be the absence of the ~£30k council house discount.
3. Whostolemyendowment said...
I do not think that two years will be enough time for proposed buyers of 25% worth of the house to save up sufficiently - unless they mean 80% goes towards the rent, and 20% can go towards a future deposit. Even so - if the rent was £750, less 20% gives a saving of £3600 over two years, not big money in the scheme of things.
Sounds more like a bail out for the builders/develpers to shift their empty overpriced houses and flats on to the social housing market - at the tax payers cost no doubt.
Personally I would much rather rent - and keep my options open.....
4. Luckyjim said...
If I was a first time buyer I would be interested in this scheme. I would not be buying now (who would) so I would be renting for the next 2/3 years anyway.
Why wouldn't I want to rent at a discounted rate ? And why wouldn't I want the option to buy in 2010/2011 when prices are more realistic ? I might not take up the option but what harm would it do to have the choice ?
5. nooneo said...
Drewster...
" The only difference here seems to be the absence of the ~£30k council house discount." - No, that would make tory housing policy more egalitarian and of at least some help to the poorer members of our society than the lie that is New Labour
6. Rm96696 said...
Why does the government want first time buyers to "get onto the propperty ladder"? While I'm here I might as well ask another question: why does the phrase "property ladder" exist only in the u.k.? Is it viewed as being like a "career ladder"? Is the idea that people should spend their lives selling houses to buy bigger houses?
7. a saver said...
So the government wastes yet more taxpayers dosh on a half-assed scheme that has come about because of rampant HPI due to their low interest rate/let the banks do what they like (then bale them out when they come unstuck) policy. Words fail!!!
8. hpwatcher said...
Typical 'fag-packet' policy.
9. Will said...
Available to those of about £60K household income or less. The Governments own figures show that the UK average is a little over £30K pa.
That is a serious admission that most of Britain is priced out of the housing market. Professional couples only need apply.
The rest can emmigrate with the Eastern Europeans when they return home.
10. afrobaggie said...
Rm96696 @6 "Why does the government want first time buyers to "get onto the property ladder"?
So that the population is in debt, it is a modern form of enslavement.
11. nooneo said...
hpwatcher@ 8
Yes but those packets carry health warnings - Perhaps the guvmint should start a new range of wealth warnings?
My suggestions would be:
1. "Gordon Brown can seriously damage your wealth"
2. "New labour, new lies, same old tax and spend policies"
3. "Boom &Y bust can cause homes desease"
4. "3 million new homes by 2020 will give your negative equity a real reason to grow"
5. "1 in 5 BTL mortgages are government backed"
6. "Home information packs need to be renewed every 12 months"
7. "Need a place to live, convert your garden shed into valuable housing for itinerent workers and make a bundle"
8. "Can't afford to buy a property, simply wait for the biggest property crash in british history"
Remember it was Caroline Flint's report to the Cabinet that said "we don't know how bad it will get"
At HPC.co.uk we've got a pretty good idea by now, remember when this site was full of bulls (oh were are they now!) and anyone who even suggested a crash was paranoid and delusional (s2r1 and malct - were not talking about you right now), now people talk about 30, 40, 50 or even more coming off the markets peak an no-one bats an eyelid.
Strap yourselves in chaps, it's going to be a bumpy ride if all the g'mint can do is this kinda waffle - New labour - old economic models !
12. beartil2010 said...
New Labour, same danger
13. handle_it said...
Now here's a concept, how about building some affordable housing that people can rent ? Nah I'm being mental,sorry :o)
14. nooneo said...
handle_it @ 12
Nope they tried that, and when labour councils got too powerful with a nice big fat power base of thousands of tenants, the tories ripped it apart letting all and sundry buy the bloody things for a song. Er... so setting the path the the HPC of the 80s/90s.
15. Still-waiting said...
Very neatly put nooneo (13.). But as a 1st time buyer I agree with Lucky Jim (4.). Sounds like a fairly good option. I'm renting anyway, so why not rent at below market value. If the house price goes down then you can either buy it at its new low price, or just carry on renting. This scheme won't make a great deal of difference to the housing market generally though.
16. handle_it said...
I've even seen some bloggers on here saying the Tory Party is the cure for all our ills ! How quickly we forget....
17. justwatching said...
'First-time buyers have been among the hardest hit by the credit crunch. '
Above quote taken from article and shoved down sheeples throats by meejea regulary. Can't something be done about the above FALLACY/LIE/UNTRUTH/FIB.
How about we all chip in to take out an advert in the national press entitles 'HOUSES, THE TRUTH (as we see it)'
or THE TOP TEN FIBS ABOUT HOUSING.
Number one;
First-time buyers have been among the hardest hit by the credit crunch.
No, they have been financially rescued.
Number two;
No more boom and bust
3;
Prudence
anyone else fancy joining in?
4;
gwobal
18. nooneo said...
5. eat up all your scaps and the credit crunch won't hurt
19. george monsoon said...
Just watching - how about... inflation is only 3.5%
:- A - truth = more like 12 - 15%
20. malct said...
13. nooneo said...
handle_it @ 12
Nope they tried that, and when labour councils got too powerful with a nice big fat power base of thousands of tenants, the tories ripped it apart letting all and sundry buy the bloody things for a song. Er... so setting the path the the HPC of the 80s/90s.
Wednesday, July 16, 2008 02:02PM
spot on totally agree - but what was the motivation behind it all?
21. it_is_going_with_a_bang said...
How about a scheme allowing house prices to fall back to reasonable levels so that people don't rely on stupid stunts from government when buying property?
Silly idea of course.
22. nooneo said...
How about a range of social housing, that, is not only well looked after, desirable, has a good mamangement team, but has an effect of lowering peoples expectations of ever having to buy a property because it is more flexible way of living in our modern world. Damn I must be some sort of comunist or somink!
23. nooneo said...
malct @ 18.
I think it's tha old chesnut that was virtually invented in the british political system malct.
"Divide and Rule" - the best political system in the world - while we're all so busy attacking each other (tories, labour, rich, poor, immigrants, natives, buills, bears, bosses, workers you get the picture) they can get on with the task of robbing us or our rights and having any chance of actually making the place a more viable place to live.
24. justwatching said...
George
I think that will make the top 3 at least.
25. malct said...
oddly nooneo - I find myself agreeing with you completely @
Wednesday, July 16, 2008 06:10PM
and @
Wednesday, July 16, 2008 06:15PM
now there's a thing GM hope you're taking note
26. nooneo said...
malct @ 25.
Larf. I've just agreed with you on a point on the oil crash article then saw your comment. Perhaps we can all argue and make some sense of this current mess after all.
27. nooneo said...
I see the fog of the property porn industry lifting and the great british people will arise, string up the property pornstars, the politicians, the property pornstars (I know I've said them already but I really hate leeches), the money lenders, the Estate Agents (Oh why oh ble@din why do we have to give a PERCENTAGE for what is basically measuring a few rooms, taking a few photo's and writing a few words and posting them on a website when we want to sell a property?) the conveyancors, surveyors, and don't tell me how hard it is to find a builder in London, errr......
Ooooooh, I've just had a hot flush - Must be the house-price-crash-apause . I feel the end of the great british boom has taken toll on my very interest in pro-creating... Must go for a lie down.
28. malct said...
nooneo - the more I experience it the more I realise that IT (info tech) is great in some ways but it multiplies our basic human failures at communicating.
Perhaps as this 'current mess' plays out some of us will have the honour of face to face, eye to eye contact. Then and only then do we have a chance of knowing what the other is realy saying. Hey!, I'm sorry, that wasn't meant to sound high and mighty, I know very little, and that is a heck of a lot more than most. Sadly.
29. nooneo said...
malct.
"but it multiplies our basic human failures at communicating." - Don't it just. It multiplies everything. We know have to wade through so much more BS to find any/our own truth. (and that's is not a dig at anyone posting here). Lifes (quite) hard and this technology can either help us sink or swim. We have to remember that face-to-face is the real world, this is just a sad representation, albiet a rather instant one, but life online is definitely 2Dimensional.