Tuesday, Dec 16, 2008
Speechless!!
Mortgage Introducer: Extra cash help for first-timers
Margaret Beckett has revealed the government has added an extra £100 million to its scheme to help up to 18,000 first-time buyers get on to the property ladder.
Beckett also announced that more than 130 developers have agreed to take part in the scheme whereby households with incomes below £60,000 will be able to buy a new home with the help of a shared equity loan. The loan will be partly funded by the government and the developer and will be free of charge for five years. First-time buyers can use it as a deposit and it can cover up to 30 per cent of the purchase price.
Posted by renting2 @ 01:54 PM (1363 views) Add Comment
17 Comments
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1. bidin'matime said...
The lunatics have taken over the asylum...
2. The Baldman said...
Just tell the developer to sell cheaper and save taxpayers money
3. uncle chris said...
Hmmm - that will take them past the next election ... and if they target marginal seats, this might swing one or two New Liebour's way. In 5 years time, those voters will realise they were duped into buying an overpriced box.
4. pelethar said...
No way are they going to get through the election, chris. Even if through some miracle they are able to slow or even temporarily stop the house price falls they will get decimated - the punters are furious about the end of the credit boom and are ready to take it out on the government. But I can't see the Tories being any better frankly, from either point of view (ie they won't be able to stop the crash either, and will be equally ready to throw taxpayers' money at it anyway)
5. justwatching said...
pelethar, time to form a new party then?
6. d'oh said...
Nearly half a billion of tax payers money in a feeble attempt to swing an election. I am speechless with fury. These people should be strung up. This government is criminally disloyal to this country and hence, in my opinion, committing treason. It is that serious.
7. mytimeisnigh said...
Are ftb who already have large deposits also elligible for the scheme?
8. mark wadsworth said...
@ MTIN, of course not, this policy is not intended to reward the prudent.
This is just the umpteenth throw of the dice, I have added it to the list on my 'blog.
9. pelethar said...
We knew this would happen - at some point the govt would come to the conclusion that house prices are by far and away the most important political issue in the country, and would become willing to sacrifice anything and everything else to try and prop them up. As mark says, this is the umpteenth throw of the dice; there will be many more before this is over. It's damn well irritating to see our tax money thrown at the irresponsible borrowers and lenders who caused the mess we're in, and to see prudent savers punished through negative real interest rates, but it was always going to come to this.
10. mark wadsworth said...
For the next throw of the dice, my money is on "Council Tax discounts for struggling homeowners", i.e. you times your mortgage by 1% and they knock it off your Council Tax bill.
11. Prudentman said...
"its scheme to help up to 18,000 first-time buyers get on to the property ladder" ? hahaha what effect will this have against a huge backdrop of falling house prices.
They might as well try to make the Niagra flow backwards.
12. Spotthedog said...
Wasn't already posted yesterday?
This is the scheme to give government money to property developers, without actually requiring them to continue building new homes.
13. Russ said...
sounds like a con to me, why not just knock 30% off the asking price, never intrest free loans.
14. str 2007 said...
justwatching
I wonder how many votes we'd get. At least between us all we can demonstrate a vague idea of economics. More than Labour and Conservatives can between them at any rate.
mark wadsworth
No discount if you rent then !
15. Britishblue said...
At risk of playing devils advocate, I think any party who was now in government would now be looking to introduce a variety of schemes to try and stop the house price decline from accelerating.
The fact is that the market has already fallen 25%! The official statistics are always a few months out of date and do not reflect the price that properties will be agreed on in January. Therefore, just like the inflation/ deflation argument the government have to look at house prices potentially swinging too far the other way. Not just in political terms but also cultural terms. Given the combination of an extended bubble, combined with the highest consumer debt on record and a recession/ slump, the government are probably hoping to contain the house price decline to 40%. Any more and construction may never recover for the next 20 years. The risks are there when you compare our property prices to what has been considered the powerhouse economy of western Europe: Germany. The majority of Germans rent, rather than buy. So housing is not an inflated asset class. It is bubble free? However, the difference in price between Germany and the UK is staggering. On average the square metre price as of last year was 810% more in the UK than Germany. See: http://www.globalpropertyguide.com/Europe/square-meter-prices/ . Therefore, if the UK housing would have to decline by 87% to be of the same value as Germany.
16. Eternal Sceptic said...
This is yet another pathetic attempt to prop up the market and will inevitably end in tears. The only winners I can see are the spendthrift and feckless. By the time reality sets in the whole pack of cards will have collapsed. I really pity the tories when they finally inherit this mess.
17. mikedx said...
Yet another piece of proof that renters are treated like crap when overstressed liar loan "home owners" get preferential treatment..
Not bitter honest