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A Question On Gbs New 50/25/25 Scheme


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Can somebody tell me if GBs new 50/25/25 scheme applies to newbuilds only or is it all properties?

As a Sell to Renter, I am a little concerend that if it is to all property then it will restimiulate he market. If it is just new builds then I see it as a big HPC plus as the only people selling will be developers which will subdue main market activity!!!

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All property.

The intention is to prop up the housing market, as FTB are considered to be quiet littel wimps who will believe anything, but VI groups speak out.

If FTB don't take up the slack, then Prescott may buldoze a few houses down.

After all there are so many houses coming onto the market that no-one wants to buy, so they may as well be destroyed?!?

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http://news.bbc.co.uk/1/hi/uk_politics/4570045.stm

The Treasury said a pilot scheme was already in place for existing properties, but the new programme would apply to newly-built homes.

I'm sure it's been mentioned before, but the end is promising ;)

If new buyers cannot enter the market, selling chains will eventually grind to a halt, potentially bursting the bubble for millions more whose fortunes rely on rising property values.

Bubble, what bubble? :ph34r:

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Ah, gotcha - Must be me misreading that then.

Nice quotes from the BBC though:-

But he warned that the scheme would not be able to increase potential homeowners' buying power alone, and that there needed to be more houses on the market, "otherwise everybody will actually lose out".

There are loads of houses for sale, more than ever! THEY'RE JUST MASSIVELY OVERPRICED

:o

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heres what i dont understand assuming this scheme actually takes off and works as planned...

House '2bed' is now valued at 110K

House '3bed' is now valued at 160K

For owner of house 2bed to be able to move up he needs every last penny he can get for his place to be able to afford house 3bed.

House 'GB2bed' is now valued at 60K.

Who will buy house 2bed so house 2bed can move up the chain? People will just buy GB2bed.

Only senario then is for 2bed to drop his price (inline with GB2bed) but only when 3bed becomes affdordable.

Its just passed the affordabilty problem up the chain. Then when everything drops there will be an over supply of FTB properties, which brings the price down further. Until GB2bed costs more than 2bed.

I just dont get it.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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