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TheCountOfNowhere

Was The Budget Good For Hpc ?

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i dont think it will do much

some falls will come of it, but not as much as i hoped

Was their any mention of removing the "special liquidity scheme", i.e. stop giving the banks tens of billions of pounds, of our tax money, to lend to us to buy house at un-affordable levels and pay interest on it the money ?

That would have been top of my cost cutting measure.

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Was their any mention of removing the "special liquidity scheme", i.e. stop giving the banks tens of billions of pounds, of our tax money, to lend to us to buy house at un-affordable levels and pay interest on it the money ?

That would have been top of my cost cutting measure.

no i never heard any mention of this, it would have been nice, i would have like the vat to 20% to start within a month or two

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Capping housing benefit is going to hit some London BTLs hard.

Calculating lha rates at 30%-ile instead of 50th will hit a lot of landlords hard everywhere.

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i dont think it will do much

some falls will come of it, but not as much as i hoped

Capping of LHA will have a huge effect in my area. Houses selling at the lower half of the market only make sense for BTL landlords relying on tenants receiving housing benefit, and that housing benefit is about to be cut in half.

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Calculating lha rates at 30%-ile instead of 50th will hit a lot of landlords hard everywhere.

This is the hidden bomb for the housing market.

It will take a while for landlords to understand the problem that it causes for them.

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IMO budget or no budget prices will crash. It would have been nice to see CGT rise accelerate the crash but we got a slight consaltion of the rent cap.

The crash is still on.

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Will the budget start the recovery of house prices to sustainable, affordable, acceptable non-country destroying levels ?

Slowly, yes, the LHA changes followed by VAT changes will put the squeeze on slowly.

Which is what they want. A fast crash kills the banks again, they can't do anything to encourage that. Hence the climbdown on CGT. Surprised the Libs accepted that.

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Will the budget start the recovery of house prices to sustainable, affordable, acceptable non-country destroying levels ?

Sterling climbing on FOREX against everything apart from the Swiss Franc:

http://news.bbc.co.uk/news/business/market_data/currency/11/13/intraday.stm

Let's see if this is sustained or just a short term reaction.

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nothing short of a total disater for me. i signed up in late 2007 & needed it to crash by end of 2010. i dont think it now will. i have to buy by xmas or start taking some real gambles. reaponsibilities prohibit the latter, so now, i buy. and watch my equity erode slowly and painfully over the next 10 years. v v v pi55ed off.

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If the housing benefit cuts of £1.8bn are all coming from the private rented sector, rather than from LA and Housing Associations tenancies, which is what it sounds like, then that is a 20% cut in private sector housing benefit

That must help.

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nothing short of a total disater for me. i signed up in late 2007 & needed it to crash by end of 2010. i dont think it now will. i have to buy by xmas or start taking some real gambles. reaponsibilities prohibit the latter, so now, i buy. and watch my equity erode slowly and painfully over the next 10 years. v v v pi55ed off.

looks like it will be more of a long slow crash, not what most wanted, but then they can say they made the impossible soft landing

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This bit was hidden, but interesting:

1.112 The rate at which Support for Mortgage Interest (SMI) is paid is set at 1.58 percentage points above the Bank of England Base rate, and it has been frozen at 6.08 per cent since late 2008 although interest rates have fallen significantly. To put SMI on a more sustainable footing and to better reflect mortgage costs, SMI will be paid at the level of the Bank of England’s published Average Mortgage Rate from October 2010.

And, as people have said, the housing benefit changes are more extensive that people have yet realised, especially 2.50, 2.53, 2.54 and 2.56 below:

2.50 From October 2011, Local Housing Allowance rates will be set at the 30th percentile of local rents. (29)

2.51 Deductions for non-dependents will be uprated in April 2011 on the basis of prices. This will reverse the freeze in these rates since 2001-02. (30)

2.52 From 2013-14, Local Housing Allowance rates will be uprated in line with CPI. (32)

2.53 From April 2013, housing entitlements for working age people in the social sector will reflect family size. (31)

2.54 Housing Benefit awards will be reduced to 90 per cent of the initial award after 12 months for claimants receiving Jobseekers Allowance. This will be introduced in April 2013. (33)

2.55 From April 2011, Housing Benefit claimants with a disability and a non- resident carer will be entitled to funding for an extra bedroom. (34)

2.56 From April 2011, Local Housing Allowance Rates will be capped at £250 per week for a one bedroom property, £290 per week for a two bedroom property, £340 per week for a three bedroom property and £400 per week for four bedrooms or more. (35)

2.57 The Government contribution to Discretionary Housing Payments will be increased by £10 million in 2011-12 and £40 million in each year from 2012- 13. (36)

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This bit was hidden, but interesting:

1.112 The rate at which Support for Mortgage Interest (SMI) is paid is set at 1.58 percentage points above the Bank of England Base rate, and it has been frozen at 6.08 per cent since late 2008 although interest rates have fallen significantly. To put SMI on a more sustainable footing and to better reflect mortgage costs, SMI will be paid at the level of the Bank of England’s published Average Mortgage Rate from October 2010.

very interesting

the Bank of England’s published Average Mortgage Rate is currently 3.69% IIRC

Edited by oldsport

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In a word, no.

It looks like stagnation and a long wait for reasonable house prices. Our generation has been shafted but it looks like our children may be okay.

I suspected a budget like this which is why I bought at the start of the year.

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Guest BetterOffOnBenefits

It did exactly what I expected:

Nothing about anything.

Yeh but to be fair, you predicted a Labour election victory laugh.gif

Crystal ball all nicely polished?

Edited by BetterOffOnBenefits

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  • 259 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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