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moonriver

Govenment Scrap Ftb Schemes

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this was just mentioned on today's BBC2 Working Lunch.

Found this link....

http://www.themovechannel.com/news/bcf716bc-c08d/

"FTB schemes scrapped

Monday, July 13, 2009

Catherine Deshayes

Ministers have quietly scrapped two of the most popular UK schemes aimed at helping first-time buyers on to the housing ladder...

The Government invested £200 million through MyChoice-HomeBuy and Ownhome, known collectively as Open Market HomeBuy, over the past year alone.

MyChoice, which gave access to a loan of up to half of a property's value, had the highest take-up of any publicly funded home ownership scheme.

Richard Stone, of SPF Sherwins, an affordable housing advisory group, said: 'MyChoice was without question the most popular scheme, everyone went for it.' Ownhome was a smaller operation run by Places for People, the housing association and The Cooperative Bank.

The Conservatives believe the decision to close the schemes is evidence of financial pressures in the Department for Communities and Local Government as it seeks to divert money into new social housing.

Source: Financial Times "

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Excellent news!

Thank god. As a FTB I wouldnt touch one of these schemes with a barge pole. If you cant afford it, you cant afford it. These schemes are dressed up as "helping" FTBers ontp the ladder, they are actually designed to prop up rediculous house prices. When will the government realise that the best help for FTBers is to stop proping up the market and let property reach its natural level.

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Further evidence that the govt. have got no cash?!

Although they clearly want to halt any hpc especially before the next GE another sign that the market will not be propped up by the government via direct policies like this.

Where I was at one stage scarred of government intervention stopping the HPC I am still dreaming of another 40% fall over the next two and a half years……….

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Wow! 200Mil pi$$3d up the wall, add to the billions similarly wasted :angry: Even a newb on here could've told whoever decided that this was a genius idea that it wasn't going to work. Oh well suppose I ought to be happy really, just another prop kicked out from under the artificially propped up UK housing market.

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if true this is excellent news. Although how much difference they actually made ? i don;t know ?

Although i suspect this could be one of those rebranding exercise this govt. is so fond of.

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Excellent, the sooner the market stops being propped up and finds its own level the better for everybody.

Can't help but feel many of these schemes for selected developers, selected developments, selected plots was a way of shifting unpopular property.

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we actually were going to go for this, the thing that got me was how much the minimum amount was, that the agreed to lend me. It was 20K more then I myself had budgeted as my maximum, and the maximum amount they would lend was crazy, from memory about 50K over my maximum. I wonder what the quality of life for those people that got onto it is or will be after there fixed term.

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Although i suspect this could be one of those rebranding exercise this govt. is so fond of.

In this case I'm not so sure. Given that there was a high take-up rate in the first place, it's not as if the schemes could be branded as failing to interest the public. What's more, they've not gone down in a blaze of glory, and if there's one thing this government has consistantly done for the last 12 years is ram it's statistical successes down everyone's throats.

To my mind, it's a toss-up between a potential future legal issue (well, if you can mis-sell an endowment mortgage, or a pension, you can...) or the result of a lot of focus groups on the subject of what the public don't mind seeing cut.

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Can't help but feel many of these schemes for selected developers, selected developments, selected plots was a way of shifting unpopular property.

yes, I suspect this too, and of course these schemes also meant the media could indulge in bit more property ramping.

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Thank god. As a FTB I wouldnt touch one of these schemes with a barge pole. If you cant afford it, you cant afford it. These schemes are dressed up as "helping" FTBers ontp the ladder, they are actually designed to prop up rediculous house prices. When will the government realise that the best help for FTBers is to stop proping up the market and let property reach its natural level.

+1 Spot on, me too.

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Further evidence that the govt. have got no cash?!

Although they clearly want to halt any hpc especially before the next GE another sign that the market will not be propped up by the government via direct policies like this.

Where I was at one stage scarred of government intervention stopping the HPC I am still dreaming of another 40% fall over the next two and a half years……….

Correct someone at the treasury said the books are a complete mess and they need to stop spending, "its a shamble".

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yes, I suspect this too, and of course these schemes also meant the media could indulge in bit more property ramping.

One nice side effect is that as the market turns back down, EAs are going to need a credible reason to switch from ramping to managing the expectations of sellers. This provides it. "Sorry love, you should have sold in the spring, when the govenrnment was still giving FTBs a 50% deposit".

BTW, HomebuyDirect continues, so the housebuilders still get their bailout.

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As ive said before, you can have public services OR high house prices, not both.

Govt, either through taxation or borrowing, simply cannot support both. The housing market is simply too big to be supported by the govt, unless everything else is cut massively.

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Other than the OP's link, I can't find anyone else reporting it. The closest I can find is this: http://www.guardian.co.uk/commentisfree/20...housing-schemes which is about the budget for the program being cut.

I guess it is no surprise that this scheme being scrapped, is going to get little media coverage, in comparison to the high coverage it got when it was introduced.

We can't have the media undermining confidence in the housing market, can we? :rolleyes:

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I suspect they contributed greatly to the surge builders report in their previously unsaleable 1 and 2 bed shoeboxes.

now gone, the builders will be fending for themselves again.

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Biggest news of the month.

I quite agree, although the subtlety of it is, in my opinion, far more significant than the actual news itself.

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