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RentingForever

Housing Measures Announced In The Budget

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The full gory details:

Housing

1.119 The affordable supply of new homes in the right places helps to create a dynamic economy and a flexible labour force. Housing supply is constrained by the lack of viable land for development. As set out above, the Government is announcing reforms to the planning system which will increase the amount of land brought forward and improve incentives for local communities to support development.

1.120 Over the long term, increased macroeconomic and financial stability will create a favourable environment for house-building. Stability in the labour market and the availability of mortgage finance will support sustainable demand for housing. The associated increase in certainty for the construction sector will aid the supply of new homes.

1.121 The Budget provides help for homeowners and new buyers, and supports the capacity of the house-building industry to ensure a more efficient housing market:

  • The Government will help homeowners facing difficulties by extending for a further year temporary changes to the Support for Mortgage Interest (SMI) scheme. The 13-week waiting period and £200,000 limit on eligible mortgage capital will now remain in force for new working age SMI claimants until January 2013;
  • the Government will provide £250 million to support first time buyers to purchase a new-build property. The FirstBuy programme will assist over 10,000 households with equity investments jointly funded with house-builders; and
  • the Government will strengthen demand for residential property by reforming the stamp duty land tax rules applied to bulk purchases. This will reduce a barrier to investment in residential property, promoting private rented housing supply.

1.122 The Government will announce the outcome of its review of the stamp duty land tax relief for first time buyers in autumn 2011.

1.123 The Government will make Real Estate Investment Trusts easier to set up and more accessible to investors. This will encourage investment in the private rented sector over the longer term.

The bulk purchase provision is a straight bung to landlord empire builders: if you buy in bulk the stamp duty is based on the mean price, not the total.

Edited by RentingForever

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The full gory details:

The bulk purchase provision is a straight bung to landlord empire builders: if you buy in bulk the stamp duty is based on the mean price, not the total.

What I found worrying there was the SMI bogeyman. There is no commitment to kill it for those not of working age.

Pensioners are moving up the table of troughers imo, along with Bankers and Benefit fraudsters. They never seem to take a hit for anything and get everything paid for, no politician dare touch them.

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Pensioners are moving up the table of troughers imo, along with Bankers and Benefit fraudsters. They never seem to take a hit for anything and get everything paid for, no politician dare touch them.

Indeed.

Worrying as most of the ones about today will still be hanging on when I get to 65.

Maybe my opinons will change then.

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What I found worrying there was the SMI bogeyman. There is no commitment to kill it for those not of working age.

Pensioners are moving up the table of troughers imo, along with Bankers and Benefit fraudsters. They never seem to take a hit for anything and get everything paid for, no politician dare touch them.

The extension of smi is only available to those of working age so they have killed it for new non working age claims

I still see the whole lot as a flag waving /political brownie point`s scorning exercise,all the schems and scams amount to just pi$$ing into the wind

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The extension of smi is only available to those of working age so they have killed it for new non working age claims

I still see the whole lot as a flag waving /political brownie point`s scorning exercise,all the schems and scams amount to just pi$$ing into the wind

Are you sure about that? I read the words to mean that SMI would remain indefinitely for pensioners. Did I get this wrong? Can someone give me some good news and say that this monstrosity is being taken away from Pensioners, both from those claiming now and future claimants?

I am expecting the worst.

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Are you sure about that? I read the words to mean that SMI would remain indefinitely for pensioners. Did I get this wrong? Can someone give me some good news and say that this monstrosity is being taken away from Pensioners, both from those claiming now and future claimants?

I am expecting the worst.

The Government will help homeowners facing difficulties by extending for a further year temporary changes to the Support for Mortgage Interest (SMI) scheme. The 13-week waiting period and £200,000 limit on eligible mortgage capital will now remain in force for new working age SMI claimants until January 2013;

It states new working age claimants so I can only assume it excludes non working age claimants ,as if it did include the later there would be no need to state the former Or is there some more that I have not seen? I hope not

Edited by long time lurking

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The Government will help homeowners facing difficulties by extending for a further year temporary changes to the Support for Mortgage Interest (SMI) scheme. The 13-week waiting period and £200,000 limit on eligible mortgage capital will now remain in force for new working age SMI claimants until January 2013;

It states new working age claimants so I can only assume it excludes non working age claimants ,as if it did include the later there would be no need to state the former

Ah but the Government's words are weasel.

What happens to current pensioners claiming SMI? I understand that goes on forever.

And it is possible to interpret these words to mean that SMI for working age people is time boxed, but there is no change for the rules for non-working age people. That could mean the rules for them will be addressed separately, or just remain in place as they are.

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the Government will provide £250 million to support
first time buyers to purchase a new-build property
. The FirstBuy programme will assist over 10,000 households with equity investments jointly funded with house-builders; and

About as much use as a chocolate teapot. Unless you're a developer, that is. <_<

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Ah but the Government's words are weasel.

What happens to current pensioners claiming SMI? I understand that goes on forever.

And it is possible to interpret these words to mean that SMI for working age people is time boxed, but there is no change for the rules for non-working age people. That could mean the rules for them will be addressed separately, or just remain in place as they are.

SMI is only payable for two years for the working age, {I know someone who have just had their`s stopped} the change labour made was dropping the waiting time for eligibility from 26 weeks to 13 and as far as I know it was only payable for a year prior to the change

I have never known it to be payable for a indefinite period for anyone but could be wrong

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SMI is only payable for two years for the working age, {I know someone who have just had their`s stopped} the change labour made was dropping the waiting time for eligibility from 26 weeks to 13 and as far as I know it was only payable for a year prior to the change

I have never known it to be payable for a indefinite period for anyone but could be wrong

It was a shock to everyone to find out that pensioners could receive SMI indefinitely.

About half of all claimants are pensioners, or were last time I looked at the figures. Given the nature of the scheme, that percentage is likely to have risen. The issues of moral hazard here just defy belief. If you can get a mortgage the day before you retire, the state will pay the interest for the rest of your life! (Up to £200k). You can therefore get a very nice upgrade on your property if you have paid off your mortgage already therefore, with a nice conniving bank manager, and the taxpayer underwrites the bill.

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SMI is only payable for two years for the working age, {I know someone who have just had their`s stopped} the change labour made was dropping the waiting time for eligibility from 26 weeks to 13 and as far as I know it was only payable for a year prior to the change

I have never known it to be payable for a indefinite period for anyone but could be wrong

There is no limit to how long you can get SMI if you are getting:

•Income Support

•income-related Employment and Support Allowance

•Pension Credit

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/DG_180321

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There is no limit to how long you can get SMI if you are getting:

•Income Support

•income-related Employment and Support Allowance

Who can claim that ? Not just pensioners ?

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Who can claim that ? Not just pensioners ?

It's more a case of who can't!!

Who can get Income Support

It's for people who all the following apply to:

•are between age 16 and the age they can get Pension Credit

•have a low income

•work less than 16 hours a week

•aren't in full-time study (but there are some exceptions)

•don't get Jobseeker's Allowance or Employment and Support Allowance

•don't have savings above £16,000

•live in Great Britain

You may get Income Support if you are one of the following:

•a lone parent

•on parental or paternity leave

•a carer

•a refugee learning English who arrived less than a year ago

Young people in relevant education may also get Income Support. Generally this means full-time education up to GCE A-level or Scottish Certificate of Education (Higher level). This might apply if you:

•are a lone parent

•don't live with a parent or someone acting as a parent

•are at serious risk of abuse or violence

•are a refugee learning English

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018708

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It's more a case of who can't!!

Who can get Income Support

It's for people who all the following apply to:

•are between age 16 and the age they can get Pension Credit

•have a low income

•work less than 16 hours a week

•aren't in full-time study (but there are some exceptions)

•don't get Jobseeker's Allowance or Employment and Support Allowance

•don't have savings above £16,000

•live in Great Britain

You may get Income Support if you are one of the following:

•a lone parent

•on parental or paternity leave

•a carer

•a refugee learning English who arrived less than a year ago

Young people in relevant education may also get Income Support. Generally this means full-time education up to GCE A-level or Scottish Certificate of Education (Higher level). This might apply if you:

•are a lone parent

•don't live with a parent or someone acting as a parent

•are at serious risk of abuse or violence

•are a refugee learning English

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018708

These rules are so incredible, that I dont understand why banks arent setting up mortages exactly for this very large group of people. After all, the government can always print the money that it owes them, so even 100% mortgages are a safe bet. The only risk is political change causing SMI to be withdrawn, hardly likely if you build up enough vested interest in keeping this scheme going.

And as the rate of interest that the taxpayer is coerced into paying is a good one, banks will be on to a winner here. Bonuses all round.

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The full gory details:

The bulk purchase provision is a straight bung to landlord empire builders: if you buy in bulk the stamp duty is based on the mean price, not the total.

well no.

There are thresholds. Ie £150k before you pay any SRAMP. However if you buy two properties you are currently treated as if you were buying one larger house at £299,950 and you pay stamp on that. This becomes particularly acute as you approach the £500k limit as you then pay 5% (£25k). Even if you bought them months and perhaps apart (if they were on the same development). This is viewed as on fair. So under the proposed changes the mean value wont be taken but each house will be assessed under its own right.

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well no.

There are thresholds. Ie £150k before you pay any SRAMP. However if you buy two properties you are currently treated as if you were buying one larger house at £299,950 and you pay stamp on that. This becomes particularly acute as you approach the £500k limit as you then pay 5% (£25k). Even if you bought them months and perhaps apart (if they were on the same development). This is viewed as on fair. So under the proposed changes the mean value wont be taken but each house will be assessed under its own right.

Ah... I naturally assumed the worst of Osborne. Sorry.

So fair to say that all of the housing measures are a heap of schemes that look like action but won't have a huge effect on a market about to crash?

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Ah... I naturally assumed the worst of Osborne. Sorry.

So fair to say that all of the housing measures are a heap of schemes that look like action but won't have a huge effect on a market about to crash?

ISTM that a 250 million cost (which must mean that more money is actually available as it will be loans to be repaid) for FTBs to buy overpriced new builds MUST prop up the bubble.

tim

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But they will have to pay back the same proportion of their home's eventual sale price as they borrowed in an interest-free loan.

Read more: http://www.thisismon...8#ixzz1HSBGApUk

Did I read that properly!?!?

If I stump up 5k, government stumps up 10k and the builder pays 10k.. for a 100k house...

then I sell the house for 200k... I owe 20k to the government and 20k to the builder?

Sounds like the government now has another vested interest to keep property prices rising.

The same "proportion" does not mean the same "amount".

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About as much use as a chocolate teapot. Unless you're a developer, that is. <_<

Actually that would've looked good if it had happened in about 2002.

A bung to builders that excludes non-new sales could've suppressed some of the spivs by eating up their quick profits.

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  • 284 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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