Saturday, Apr 01, 2017

Government meddling has made housing less affordable for first time buyers

BBC News: Better-off cashing in on Help to Buy scheme, research finds

Just over half of the people who have received taxpayers' money to help them buy a home under a government scheme did not need it, according to research. About 4,000 households in England earning more than £100,000 annually are in the Help to Buy Equity Loan scheme. Official figures to December 2016 show more than 20,000 households who are not first-time buyers have been helped. The initiative, which started in April 2013, aims to make buying a home more affordable. But research conducted for the government found 57% of those who signed up to it said they could have afforded to buy without access to the scheme.

Posted by quiet guy @ 12:40 PM (4063 views) Add Comment

4 Comments

1. icarus said...

From the article - "But research conducted for the government found 57% of those who signed up to it said they could have afforded to buy without access to the scheme".

The link in that quote takes us to the report, which states:

When respondents were asked about their ability to purchase the same type of new build property or similar property in the existing (second-hand) market without the assistance of Help to Buy Equity Loan, a majority in both cases stated that they would not. Figure 5.6 below indicates that......17% stated that they would definitely or probably be able to purchase the same new-build property without assistance (82% would not)...... A majority also state that they would not be able to purchase a similar property in the existing market although here the difference between those that would and would not is reduced – 63% say they wouldn’t be able to, while 35% say they would.

A quick scan revealed no "57%" figure in the report. There is one reference to its inverse - 43% - but that was the % of additional new homes up to January 2015 that resulted from HTB.

I checked this because I couldn't believe that a report commissioned by the government (Dept for Communities and Local Govt) would be so critical of the scheme. (Look at the conclusions - all broadly very supportive of the scheme.)

Where does the BBC find these clowns?

Sunday, April 2, 2017 07:41PM Report Comment
 

2. icarus said...

Talking about the Department for Communities and Local Government, look at the ex-banking spiv who heads it. Javid was a senior executive at Deutsche Bank in 2004 when it funnelled bonuses through the Cayman Islands to enrich 300 senior staff in London. Last month DB (and UBS) were ordered by the UK Supreme Court to pay back £135m, after losing a drawn-out battle with the UK tax authorities. Javid maintains that he did not benefit from this dodge despite making several million a year during his time at the bank. Seems he was the only DB top executive not to hop on the Cayman Island gravy train. During his time on the board of DB that bank's rap sheet in the US and the UK, especially the US, was far longer than your arm. (The BoE terms such practice 'ethical drift'.)

Tuesday, April 4, 2017 11:35PM Report Comment
 

3. libertas said...

Obviously, we need a version of Hire Purchase for homes, where you pay a premium rent as a purchase, which progressively boosts your ownership. A land registry reform could allow that to be calculated in real time rather than having to carry out conveyancing for every new valuation.

Saturday, April 8, 2017 07:59PM Report Comment
 

4. hpwatcher said...

Obviously, we need a version of Hire Purchase for homes, where you pay a premium rent as a purchase, which progressively boosts your ownership. A land registry reform could allow that to be calculated in real time rather than having to carry out conveyancing for every new valuation.

A mortgage with higher interest rates. No chance.

Tuesday, April 18, 2017 08:59AM Report Comment
 

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