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Saving For a Space Ship

Government Home Scheme Benefits Very Few People

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(edit: vid now available at this link)

Just had quite a lengthy article on C4 12pm news

They interviewed a young woman involved in the scheme who said she was pressured (by Barrett I think) to take on �40k more on the mortgage and get a bigger house, which she could not afford and said it 'was scary'

Edit: Previous hpc article on the scheme

Government home scheme benefits few

Updated on 16 July 2009

By Channel 4 News

Almost a year after the government announced its plans to help first time buyers get a foot on the housing ladder, Channel 4 News can reveal that only 215 people have so far benefitted. Ben King reports.

For sale signs (Reuters)

The Homebuyer Direct scheme has a budget of £480m - enough to buy a substantial townhouse in Central London for everyone who's so far completed a purchase.

But should the government be encouraging young people to take on big mortgages at a time when house prices are still expected to fall further?

Edited by Saving For a Space Ship

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Thank god for that: FTB's have not been screwed over in falling market, despite corrupt government's best efforts to help dodgy developers.

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Link

(edit: vid now available at this link)

Just had quite a lengthy article on C4 12pm news

They interviewed a young woman involved in the scheme who said she was pressured (by Barrett I think) to take on �40k more on the mortgage and get a bigger house, which she could not afford and said it 'was scary'

Edit: Previous hpc article on the scheme

These government schemes are all a bit confusing, your post refers to the The Homebuyer Direct scheme but your link to "Previous HPC article on the scheme" refers to the Open Market Homebuy Scheme which I believe is different and was cancelled the other day see link here:

Government Scrap FTB's Schemes

"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.

Must confess to having been confused myself because I thought the above article was the Homebuy Direct Scheme (made the same mistake before).

I thought Homebuy was out of money weeks ago:

On the 20th March 2009 the Times announced:

FTB's Rush To Sigh Up for Homebuy Direct

Demand from first-time buyers in London for a government homebuying scheme has been so high that developers think that they are in danger of running out of stock by summer. A new HomeBuy Direct scheme, launched in September last year, allows buyers earning less than £60,000 to take out a mortgage for 70 per cent of the cost of a property, with the Government and a developer jointly lending the remaining 30 per cent on an interest-free basis for five years, after which fees will apply.

The Housing Minister, Margaret Beckett, said that demand has been three times the amount the Government expected. Barratt, one of the developers included in the £400 million scheme, said that 20,000 potential buyers have registered their interest in buying one of its homes this way.

We were then told that :

Politician in Row Over Homebuy Figures

Housing minister Margaret Beckett has denied the Opposition's claims that no properties have been sold through the government's HomeBuy Direct scheme.....

...Cameron quotes Beckett's res- ponse to shadow housing minister Grant Shapps on the HomeBuy Direct scheme on March 24 2009, as recorded on Hansard, that "not a single sale had been made" since the scheme's inception.

But Beckett now claims this is not the case, saying that although there are no solid figures she has met "at least one couple" that has participated in the scheme.

By May 2009 I thought it had run out of money but looking back now I realise it was My Choice Homebuy that had rund out funding not Homebuy :

Homebuyers Left in Lurch as State Help is Exhausted

First-time buyers using a government scheme to get on the housing ladder have had to pull out of purchases at the eleventh hour after funding ran out.

The Government said that the sudden shortage of cash was a result of the huge demand for its MyChoice Homebuy scheme, which enables buyers who do not have enough money for a deposit to obtain a mortgage with the Government stumping up the balance.

Some would-be buyers had already had offers on properties accepted and had instructed solicitors when they learnt that their previously accepted applications would no longer be successful, forcing them to back out of the transaction.

Then this week we heard that My Choice and Ownhome have been scrapped and now we hear that despite the Housing Minister, Margaret Beckett, in March 2009 saying :

that demand has been three times the amount the Government expected. Barratt, one of the developers included in the £400 million scheme, said that 20,000 potential buyers have registered their interest in buying one of its homes this way.

Such high levels of demand will put pressure on the Government to announce further funding to help first-time buyers in next month's Budget. The Government originally said that the scheme would help 18,000 first-time buyers across the country - just a fraction of the 357,800 that entered the market in 2007. About 1,300 will benefit in London, where average property prices are further beyond the reach of those on low incomes.

that , THANK GOD ......only 215 people have so far benefitted.

Although I would Q that they have benefitted to be honest!!

What would benefit any potential FTB would be to read:

Don't Try to Stop the Housing Crash

Stay Away From Property It Has a Lot Further to Fall

House Prices Could Fall Another 40%

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These government schemes are all a bit confusing, your post refers to the The Homebuyer Direct scheme but your link to "Previous HPC article on the scheme" refers to the Open Market Homebuy Scheme which I believe is different and was cancelled the other day see link here:

Government Scrap FTB's Schemes

Must confess to having been confused myself because I thought the above article was the Homebuy Direct Scheme (made the same mistake before).

I thought Homebuy was out of money weeks ago:

that , THANK GOD ......only 215 people have so far benefitted.

Although I would Q that they have benefitted to be honest!!

What would benefit any potential FTB would be to read:

Don't Try to Stop the Housing Crash

Stay Away From Property It Has a Lot Further to Fall

House Prices Could Fall Another 40%

Sorry about that, it came up when I searched hpc to see if the article had been posted already.

Edited by Saving For a Space Ship

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HomeBuy Direct is the main scheme if you want to use HomeBuy to buy a property from a developer.

As Sybil13 says, the schemes to buy a second hand property have been, to all intents and purposes, scrapped.

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HomeBuy Direct is the main scheme if you want to use HomeBuy to buy a property from a developer.

As Sybil13 says, the schemes to buy a second hand property have been, to all intents and purposes, scrapped.

Did they run out of cash or were they just not used and they re-allocated the funds somewhere else?

.

Edited by Ash4781

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Did they run out of cash or were they just not used and they re-allocated the funds somewhere else?

.

Or did they quango the money into thin air?

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