catmandu Posted March 13, 2011 Share Posted March 13, 2011 (edited) Posted this in the main blog, but it's mostly relevant to Scotland and so deserves it's own topic here. FULL article here: Shared equity schemes banned A FINANCIAL lifeline that has helped keep the dreams of homebuyers alive during the property downturn in Scotland faces being severed by new regulations on loans. Thousands of new homeowners - particularly first-time buyers - have taken advantage of "shared equity" schemes in which beleaguered housebuilding companies split the cost of purchasing a property. But experts have warned that new rules on what are effectively loans to buyers - to be introduced next year - may spell the end of the shared equity device. Homeowners who have already purchased properties under shared equity schemes may also be affected, as building companies will be prevented from administering the current deals. Edited March 13, 2011 by catmandu Quote Link to comment Share on other sites More sharing options...
up2late Posted March 13, 2011 Share Posted March 13, 2011 I've left a comment Quote Link to comment Share on other sites More sharing options...
Milton Posted March 13, 2011 Share Posted March 13, 2011 (edited) Thousands of new homeowners - particularly first-time buyers - have taken advantage of "shared equity" schemes in which beleaguered housebuilding companies split the cost of purchasing a property. Sh1te ill considered Vested Interest Journalism. Boils my blood. Without stealing our money to bail out the banks, house prices would have reverted to their long term median affordability, which would mean over 50% reductions. Shared Equity is government sponsored theft. Just as the inflating of the bubble was government sponsored fraud. It failed under Labour and it will fail under Grant Shapp's. Shapp's already knows it will fail. Just as he knows there are many many ways the government could make houses affordable for FTB's again. If they wanted to. B@5tards one and all. Edited March 13, 2011 by Dan1 Quote Link to comment Share on other sites More sharing options...
plummet expert Posted March 13, 2011 Share Posted March 13, 2011 (edited) Sh1te ill considered Vested Interest Journalism. Boils my blood. Without stealing our money to bail out the banks, house prices would have reverted to their long term median affordability, which would mean over 50% reductions. Shared Equity is government sponsored theft. Just as the inflating of the bubble was government sponsored fraud. It failed under Labour and it will fail under Grant Shapp's. Shapp's already knows it will fail. Just as he knows there are many many ways the government could make houses affordable for FTB's again. If they wanted to. B@5tards one and all. Yes. These schemes are crazy and just support daft unaffordable prices that should never have been reached like any other subsidy. They would not be needed if it had not been for the foolish way in which successive govts have failed to regulate the mortgage market. I think banning such schemes would actually help everyone who aspires to own a home of their own. May be not overnight, but certainly over time. Grant Shapps does not reply to letters, either mine or others I know, which challenge the folly of his policy to talk up a 'stable' market settling over 10-20 years, which stupid policy would see a generation unable to buy and another sitting on unexpected equity they should not have. To have this situation take so long to correct would actually provide another enormous problem in the rental and social housing sector. I think the market is starting to have its way whatever he says and whether or not he spends time having talks with lenders about pointless FTB initiatives. Who would want to lead any FTB into an impossible debt, that cannot be serviced at mortgage rates which you know will return to 7-8% soon enough? This fanatasy of basing affordability on 2.5% mortgages is dangerous and stupid. THE PRICES ARE FAR TOO HIGH. LET THEM FALL. Edited March 13, 2011 by plummet expert Quote Link to comment Share on other sites More sharing options...
Froggee Posted March 13, 2011 Share Posted March 13, 2011 Yep - these things are crazy and should be banned. When you see ads for new-builds that don't even quote the actual price but the price for "shared equity" you know there is a problem. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted March 13, 2011 Share Posted March 13, 2011 (edited) All good. The banks could handle a 30% correction now? and will hope that pent up thirty somethings, living in their childhood bedrooms, will pile in to stop the crash going all the way? Edited March 13, 2011 by dances with sheeple Quote Link to comment Share on other sites More sharing options...
abroad Posted March 18, 2011 Share Posted March 18, 2011 Article in Herald today with Ian Gray of Labour offering up support for such a scheme....illegal or not Quote Link to comment Share on other sites More sharing options...
Jie Bie Posted March 21, 2011 Share Posted March 21, 2011 (edited) Jonathan Fair, chief executive of Homes for Scotland (HFS), which represents the new home building industry, said: "It is very encouraging to see formal policies like this one now coming forward in response to consistent calls from HFS for support in developing new responsible ways to underwrite higher loan to value lending." A guy from the housebuilding trade thinks its great that Labour want to ensure FTB's pay over the odds for their crappy newbuild homes. Quelle surprise. Rather than wasting taxpayers money on this garbage, maybe they could just let prices continue to slide? Must be a lot of property owners in the Labour Party, I'm pretty sure quite a few of their Lanarkshire MP's have a few BTL's. Edited March 21, 2011 by Jie Bie Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted March 26, 2011 Share Posted March 26, 2011 So any further news on this - are they being banned? If so GREAT news but I really don't see it happening. Oh man... I was talking to some really smart and clued up engineers the otehr day... 'clued up' until they started to say now was the time to buy... and that it would be awful for these schemes to stop as they really help people get on the ladder. We are scr*wed. Well, probably not me, if my plans to move work out. Quote Link to comment Share on other sites More sharing options...
abroad Posted March 28, 2011 Share Posted March 28, 2011 (edited) Article in Sunday times yesterday was saying this proposed scheme with government backing was still going ahead. They were also saying thta only parents can now save the housing market by helping kids get onto that ladder by paying their deposit........... scheme will add up to 20% deposit to buyers 5% deposits, its estimated to be funded to help 10,000 buyers which is about the same as the number of loans given out in Jan of 2011. It will ONLY apply to those buying new builds. Seemingly according the Sunday Times 850,000 FTBer are locked out due to the credit crunch...nothing to do with the prices of houses.... Edited March 28, 2011 by abroad Quote Link to comment Share on other sites More sharing options...
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