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porca misèria

Economists Attack Chancellor's New Ftb Scheme

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OK, which of you is Jonathan Portes in real life?

http://www.introducertoday.co.uk/News/Story/?storyid=4110&title=Economists_attack_Chancellor%27s_new_FTB_scheme&type=news_features

Jonathan Portes, director of the National Institute of Economic and Social Research (NIESR), said that Firstbuy Direct was a measure that would “exacerbate economic distortions and make things worse over the long run”.

He said: “House prices in the UK are too high and that has all kinds of damaging economic and social impacts. The main financial impact of giving help to first-time buyers is to pump extra money into the demand side and boost house prices.

“That’s the last thing future first-time buyers or the economy as a whole needs.”

[....]

Asked by the chairman Andrew Tyrie what housing measures he would have introduced, Bootle replied: “I certainly would not have done this scheme to boost the position of first-time buyers.

Edited by porca misèria

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This looks as if it was written by someone from here.

Good.

It makes perfect sense though. Every £1 that goes into the housing market via these schemes is an extra £1 in demand.

The government could save billions by doing nothing.

If they actively tried to push down rents and housing costs they could make tens of billions in increased competitiveness, less housing related benefits, more stamp duty as the market gets moving again.

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Fab stuff. Will they cancel the scheme? It's got lots of MSE twitching in excitement though about being able to buy a house at last.

The government's FirstBuy scheme will make child poverty worse.

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In a kleptocracy, corporatocracy, call it what you like anything but democracy, what's good for the economy as a whole isn't what's done.

Someone somewhere is getting a kick back!

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I guess if the FTB scheme was restricted to new builds it would be preferable, as it would as least increase supply (ie real wealth, real infrastructure) though still a disgraceful way of propping up the landed gentry and inefficient, badly managed property firms.

Injecting more money into the same supply and expecting greater affordibility is insanity though, which is probably why the politicians will go for such a scheme.

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At least this policy is only for brand new homes so it will help increase the number of homes being built.

Well, thats something.

Caught a bit of PHIL DOWN UNDER the other week, apparently the aussies have something similar whereby foreigners can only buy new homes, thus increasing supply and boosting construction.

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I still maintain that the scheme may actually result in slight downwards pressure in pricing over the longer term.

Although demand will be stimulated, one could argue that supply may also benefit.

In addition, because the scheme is restricted to new builds those selling at second hand properties at that part of the market will need to be more aggresive with price cuts than perhaps they are at the moment

Edited by BearNecessities

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It makes perfect sense though. Every £1 that goes into the housing market via these schemes is an extra £1 in demand.

The government could save billions by doing nothing.

If they actively tried to push down rents and housing costs they could make tens of billions in increased competitiveness, less housing related benefits, more stamp duty as the market gets moving again.

Loads of the Parliamentarians and Lords are major BTL Poncers with 50+ houses/flat Portfolios!

And loads more of them are Directors/on the boards of building companies and associated investing property 'dabbling' + landbank clubs.

The UK Govt is infested with these Vi's whose corrupt practices (in popularity and power self-preservation) come way above helping out the UK population!

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Fab stuff. Will they cancel the scheme? It's got lots of MSE twitching in excitement though about being able to buy a house at last.

The government's FirstBuy scheme will make child poverty worse.

If it were a choice between this new scheme and SMI, I would say keep this scheme.

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If it were a choice between this new scheme and SMI, I would say keep this scheme.

They cannot do the First Buy without extending SMI. There might not be enough takers.

The First Buy scheme says to FTBs buy a house, the SMI extension adds, don't worry if you lose your job and cannot afford to pay the huge mortgage, taxpayers will bail you out.

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I still maintain that the scheme may actually result in slight downwards pressure in pricing over the longer term.

Although demand will be stimulated, one could argue that supply may also benefit.

In addition, because the scheme is restricted to new builds those selling at second hand properties at that part of the market will need to be more aggresive with price cuts than perhaps they are at the moment

If you assume most housing transactions involve chains, and most chains require a first time buyer at the start (I don't know how true this is), then every FTB entering the second hand market will generate several house sales, increasing prices. This scheme only serves to reduce the number of FTBs in the used market, so will surely have a negative effect on prices? It will also soon increase supply as those using the scheme realise they can't afford their mortgage payments and try and sell their crappy, overpriced flats on the used market.

Edited by pablopatito

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Well, thats something.

Caught a bit of PHIL DOWN UNDER the other week, apparently the aussies have something similar whereby foreigners can only buy new homes, thus increasing supply and boosting construction.

Do you have a link for that?

I'm surprised that the Guardian hasn't organised a campaign to denounce this blatantly racist measure by a white-majority country :lol:

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Do you have a link for that?

I'm surprised that the Guardian hasn't organised a campaign to denounce this blatantly racist measure by a white-majority country :lol:

Just wait until the Aussie housing bubble goes pop.

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If you assume most housing transactions involve chains, and most chains require a first time buyer at the start (I don't know how true this is), then every FTB entering the second hand market will generate several house sales, increasing prices. This scheme only serves to reduce the number of FTBs in the used market, so will surely have a negative effect on prices? It will also soon increase supply as those using the scheme realise they can't afford their mortgage payments and try and sell their crappy, overpriced flats on the used market.

I haven't read the proposal in detail, but it sounds like it will effectively provide funds to purchase land - in which case it will almost certainly act to raise prices.

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The FTB scheme is just a sleight-of-hand. It's designed to be a distraction from the massive tax cut for BTL investors.

Wow that seems incredibly unfair, one tax for ordinary people and a much lower tax for big business doing the same thing.

The only logic I can think of for this is that its to make it easier for the banks to reposses and sell on the large property portfolios of certain massively over-borrowed landlords in ashford.

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  • 311 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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