First post (although long-time lurking)...
So, am I actually missing something fundamental as I think this is actually a good thing to help house prices...why?
1. It replaces HTB (or HTB2), which we all agreed was an inflationary measure on house prices.
2. Over 5 years it equates to £3000, on a £100k property (about the smallest you can spend in most places in the UK) this is 0.6% per annum ....How many places in the UK have shown a growth rate as small as this in the last few years?...
So basically anybody with an 'ounce' of sense will see that
a) By waiting over a 5 year period to get the govt money it will actually be costing them more (assuming properties increase at a rate greater than 0.65 per annum [or 1.2% per annum for a joint purchase])
The greater properties increase in price (or the purchaser spends) will mean an even lower benefit.
c) £3000 of a £100k house equates to a 3% saving....a half savvy (muppet?) purchaser (even Kirdty or Phil!) could get a 5% saving off the price of a house as part of the bargaining process.
So, the upshot is it replaces HTB which actually did damage, if people wait for their 5 year (£3000/£6000) payout the lowering demand may affect prices and hopefully people will see it for what it is and realise that govt interferance in the housing market is just a scam.