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Grant Shapps To Unveil Shared Equity Ponzi For Ftbs

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Builders step up to help first-time buyers

Details of a scheme that could help thousands of first-time buyers on to the housing ladder will be unveiled by the Government today.

The Housing Minister Grant Shapps is expected to announce the housebuilders selected to join its £500 million FirstBuy shared equity scheme — its first significant housing initiative since taking office.

The scheme will provide buyers of new homes with a loan of up to 20 per cent of the purchase price — split between the Homes and Community Agency and the developer. The buyer must be able to inject a further 5 per cent as a personal deposit in order to get a 75 per cent mortgage.

Loans from the scheme are interestfree for five years and can be repaid when the property is sold. The Government's share of the equity will be recycled to fund more home buyers. Mr Shapps will say today: "With 80 per cent of young first-time buyers depending on parental help, I am determined that we pull out all the stops to help those who want to take their first steps on to the property ladder. First-Buy will do just that — a governmentbacked scheme making £500 million available to offer a valuable alternative to the Bank of Mum and Dad. Over the next two years, this will help as many as 10,000 people in England to get that much-needed deposit together and realise their dreams of owning their own home."

FirstBuy, which was announced in the Budget, aims to stimulate demand from first-time buyers, who are struggling because of the lack of mortgage finance, which in turn should propel supply by encouraging housebuilders to start new schemes.

Only potential buyers with household earnings of less than £60,000 are eligible, although this could increase over time, particularly in London. The maximum property price is expected to be £280,000 but purchases of up to £300,000 will be considered in exceptional circumstances.

Although Mr Shapps will detail how much of the FirstBuy funding each housebuilder will be allocated, he will not provide information on specific schemes where the product will be marketed as these are still subject to contract with the builders.

The Government said that the first homes to be available for buyers to purchase using FirstBuy should be ready from September this year. The housebuilder Barratt told The Times that 12,000 people had registered interest on its website and it expected the scheme to be oversubscribed.

Other leading housebuilders, such as Taylor Wimpey and Persimmon, have also been asking prospective buyers to register interest on their websites. They have added, however, that while FirstBuy was welcome, much needed to be done to encourage first-time buyers and to open up mortgage finance. The scheme has been criticised for putting public money at risk and encouraging young people to get on to the property ladder at a time when house-price falls have been forecast.35% Proportion of loans to first-time buyers in April. The lowest for nearly four years Source: Council of Mortgage Lenders

http://206.252.133.22/AlertWebInterface/Article.aspx?reference=T000000020110620e76k0004j

Edited by thirdwave

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Time for the UK to develop an 'The Indignants!' movement - we really should be spreading the word against such Government measures, & raise awareness of the links between boom time house prices and the financial crisis and the need for house prices to fall - right across the internet using Facebook, Readers Comments on Newspaper, etc. websites, and so on rather than just remaining as a 'talking shop'. ............... its not as if this Coalition Government hasn't been pressurised into doing a U-Turn on other policies or actions its been hoping to implement

Edited by Alfie Moon

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The Housing Minister Grant Shapps is expected to announce the housebuilders selected to join its £500 million FirstBuy shared equity scheme — its first significant housing initiative since taking office.

That's only 3000-5000 FTB mortgages.

This is all they have left to play with.

It's all over.

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That's only 3000-5000 FTB mortgages.

This is all they have left to play with.

It's all over.

Yep - I like to think that they are doing this so as to be seen to be doing something, knowing that house prices are going to collapse anyway. The can always say "we tried" when the VIs moan at them. Still, it doesn't make up for the cynical act that is enticing young people to overpay for housing and many years of debt.

Edited by mikthe20

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Anyone who takes this on should do so on the proviso that if it all goes wrong they are simply going to post the keys back to the bank and tell them to shove it where the sun don't shine.

Again I'm left trying to recall that statement about getting involve in a ponzi being OK provided the govt are going to keep it going - that's the UK housing market.

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Time for the UK to develop an 'The Indignants!' movement - we really should be spreading the word against such Government measures, & raise awareness of the links between boom time house prices and the financial crisis and the need for house prices to fall - right across the internet using Facebook, Readers Comments on Newspaper, etc. websites, and so on rather than just remaining as a 'talking shop'.

The sad truth is weak housing sentiment and further price declines will decimate UK bank balance sheets and trigger another expensive bailout so the government will do everything within its means to prop up the housing market.

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Yep - I like to think that they are doing this so as to be seen to be doing something, knowing that house prices are going to collapse anyway. The can always say "we tried" when the VIs moan at them. Still, it doesn't make up for the cynical act that is enticing young people to overpay for housing and many years of debt.

Nice view of the young isn't it? Lambs for the slaughter...

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Only potential buyers with household earnings of less than £60,000 are eligible, although this could increase over time, particularly in London. The maximum property price is expected to be £280,000 but purchases of up to £300,000 will be considered in exceptional circumstances.

WTF?!?!?!?

Right, it is our duty to bombard the office of Housing Minister with emails/ letters protesting about this.

It appears my tax money will be spent to prop up house prices, when I am trying to save for a house, and I wouldn't even be eligible for an interest free loan. Jesus H. Tap-dancing Christ.

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That's only 3000-5000 FTB mortgages.

This is all they have left to play with.

It's all over.

they just want to dampen the falls a bit (for political reasons) and take some pity on the FTBs that have to buy at these prices

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The sad truth is weak housing sentiment and further price declines will decimate UK bank balance sheets and trigger another expensive bailout so the government will do everything within its means to prop up the housing market.

What, like they have in the US? And yet house prices are still crashing there.

It is always possible to come up with a million or so reasons to do nothing - yet people have forced the Coalition to stall on other policy developments, such as the NHS - the Indignants movement in Europe is gaining a lot of public support .......

There are very good theoretical and empirical grounds that support direct action - particularly in relation to the discourse environment - there is a very old thread on this (Discourse and Action) in the Market Psychology section on the HPC website that gives a brief introduction to this.

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WTF?!?!?!?

Right, it is our duty to bombard the office of Housing Minister with emails/ letters protesting about this.

It appears my tax money will be spent to prop up house prices, when I am trying to save for a house, and I wouldn't even be eligible for an interest free loan. Jesus H. Tap-dancing Christ.

So in the planet of G Shapps, your average FTB earns in the region of 60 k and a starter home costs around 280-300k..nice one!

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So in the planet of G Shapps, your average FTB earns in the region of 60 k and a starter home costs around 280-300k..nice one!

Worse - a household income of £60K, so in the event these FTB couples want to have a kid, they might drop down to £30k household income... to support a 280-300K loan.

But the worker drones don't need kids, that's what we have the benefit drones for.

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What, like they have in the US? And yet house prices are still crashing there.

It is always possible to come up with a million or so reasons to do nothing - yet people have forced the Coalition to stall on other policy developments, such as the NHS - the Indignants movement in Europe is gaining a lot of public support .......

There are very good theoretical and empirical grounds that support direct action - particularly in relation to the discourse environment - there is a very old thread on this (Discourse and Action) in the Market Psychology section on the HPC website that gives a brief introduction to this.

I can see where you are coming from but the fact is 70% of this nation has a VI in propping up the housing market. At the end of the day, people will throw their weight behind issues that are of personal relevance to them, for instance public sector cuts (as half of the working population is employed by it and the rest associate it with uncollected rubbish etc) or NHS reform (as most people are horrified at the thought of having to pay for healthcare) but any direct action challenging the morally bankrupt economic policies of successive governments that fueled asset price bubbles and took this country to the verge of bankruptcy will only be met with indifference by the majority due to the deeply entrenched desire to maintain the status quo.

Edited by thirdwave

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they just want to dampen the falls a bit (for political reasons) and take some pity on the FTBs that have to buy at these prices

By encouraging them to play Russian Roulette with all six chambers loaded...

What a government we have, piss poor from top to bottom.

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But the worker drones don't need kids, that's what we have the benefit drones for.

Sad but true. The silly fukcers in the middle (working/middle class) are going to be pointed and laughed at by both sides before much longer. Unless you are super rich or have two kids and a made up illness then serfdom it is...

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I can see where you are coming from but the fact is 70% of this nation has a VI in propping up the housing market. At the end of the day, people will throw their weight behind issues that are of personal relevance to them, for instance public sector cuts (as half of the working population is employed by it and the rest associate it with uncollected rubbish etc) or NHS reform (as most people are horrified at the thought of having to pay for healthcare) but any direct action challenging the morally bankrupt economic policies of successive governments that fueled asset price bubbles and took this country to the verge of bankruptcy will only be met with indifference by the majority due to the deeply entrenched desire to maintain the status quo.

I disagree - currently close to a whole generation of young adults are priced out of buying a starter home no matter how hard they work and save. It may be a case that they need their attention drawn to the links between the Credit boom fuelled house price boom and the impact this has - not just on their ability to buy a home - but also job prospects, University fees, moves to increase privitisation in the NHS and so on, and so on. Also, for this generation of young adults there is a significant impact on their parents - having to house and financially support their adult children for many more years than would be the case if the house price boom had not occured. Also, (and I think HPC tends to forget about this very large group) a very large proportion of people already on the property market are priced out of moving up the property ladder & need to see house prices fall to enable them to make the move - it is because this group are also so largely affected by the house price boom that property sales have collapsed so much.

I think the numbers that are adversley affected by boom time house prices and would like to see house prices fall is underestimated by a very large margin.

Ultimately though - support will only be gained if action is taken rather than doing nothing.

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I disagree - currently close to a whole generation of young adults are priced out of buying a starter home no matter how hard they work and save. It may be a case that they need their attention drawn to the links between the Credit boom fuelled house price boom and the impact this has - not just on their ability to buy a home - but also job prospects, University fees, moves to increase privitisation in the NHS and so on, and so on. Also, for this generation of young adults there is a significant impact on their parents - having to house and financially support their adult children for many more years than would be the case if the house price boom had not occured. Also, (and I think HPC tends to forget about this very large group) a very large proportion of people already on the property market are priced out of moving up the property ladder & need to see house prices fall to enable them to make the move - it is because this group are also so largely affected by the house price boom that property sales have collapsed so much.

I think the numbers that are adversley affected by boom time house prices and would like to see house prices fall is underestimated by a very large margin.

Ultimately though - support will only be gained if action is taken rather than doing nothing.

Since much this country's 'wealth' (as sheeple see it) is tied into bricks and mortar, any steep falls will disproportionately affect economic activity - in fact, the government is banking on house prices staying largely flat since its projections for the economy, derived from the so called independent OBR figures, are based to a more modest decline in house prices than the current historically low activity levels would allow. I don`t think there is much enthusiasm for sustained house price falls either in the government or among the public as the squeezed middle, the very demographic you refer to, has itself hugely benefited from the property boom and although they would like to see the house they aspire to fall in price, I doubt they would like their own to do the same..

One can only hope that, given its part financed by house builders, the 12,000 odd FTB mortgages this scheme will finance won`t have a ripple effect on transactions in the wider market as they would be limited to new builds..However, there is every chance the government may roll out this nonsense on a grander scale if the pilot is successful.

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Since much this country's 'wealth' (as sheeple see it) is tied into bricks and mortar, any steep falls will disproportionately affect economic activity - in fact, the government is banking on house prices staying largely flat since its projections for the economy, derived from the so called independent OBR figures, are based to a more modest decline in house prices than the current historically low activity levels would allow. I don`t think there is much enthusiasm for sustained house price falls either in the government or among the public as the squeezed middle, the very demographic you refer to, has itself hugely benefited from the property boom and although they would like to see the house they aspire to fall in price, I doubt they would like their own to do the same..

One can only hope that, given its part financed by house builders, the 12,000 odd FTB mortgages this scheme will finance won`t have a ripple effect on transactions in the wider market as they would be limited to new builds..However, there is every chance the government may roll out this nonsense on a grander scale if the pilot is successful.

Again, I disagree. I think you are underestimating just how many are priced out of the property market as buyers, whether they are on the the property ladder or not. So many are currently priced out that Estate Agents are only selling one property per week on average.Look at readers comments on the Daily Mail and other national newspaper websites - the pro-house prices remaining at boom time levels where most people are priced out of the market are the small minority. And people are increasingly making the link between the financial crisis inducing levels of credit/debt that was necessary for house prices to inflate to such levels and the costs of this being the age of austerity whereby 100s of thousands have lost jobs, seen their incomes fall, are seeing very big cuts and changes to the services that we all rely upon such as Health, Education, Social Care, and so on. It is also a fact that the majority of current mortgage hol;ders, and certainly house owners can afford to see house prices fall by 30% or even more without any direct ill-effect on them (they will still have their house that they live in, just less notional equity). ....... and for many others they want to see their children have a chance of getting on the property ladder (without themselves as parents having to decimate their pension & savings funds to help provide a deposit for their children). I would agree that there are those that need help in joining up the dots between house prices and the financial crisis - but more and more are seeing the connections. There are plenty of handles for Direct Action to take a hold of and use to very good effect to generate increasing support for lower house prices.

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That's only 3000-5000 FTB mortgages.

It's also only for newbuilds and only from scheme-participating builders.

Hard to tell the difference between the new FirstBuy scheme and the Homebuy scheme introduced by Labour . . . besides the fact that it is even more limited in scope.

Homebuy was introduced in 2005, re-launched by various housing ministers but got very few takers. People didn't go for shared equity then and now, if anything, they'd prefer a shared negative equity scheme.

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I'm all for this. It's strictly for new builds as opposed to the used house market, so it will keep building going.

Good thing.

As for the poor unfortunates who are lured into the jaws of the trap, well feck em.

Edited by Laughing Gnome

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I disagree - currently close to a whole generation of young adults are priced out of buying a starter home no matter how hard they work and save. It may be a case that they need their attention drawn to the links between the Credit boom fuelled house price boom and the impact this has - not just on their ability to buy a home - but also job prospects, University fees, moves to increase privitisation in the NHS and so on, and so on. Also, for this generation of young adults there is a significant impact on their parents - having to house and financially support their adult children for many more years than would be the case if the house price boom had not occured. Also, (and I think HPC tends to forget about this very large group) a very large proportion of people already on the property market are priced out of moving up the property ladder & need to see house prices fall to enable them to make the move - it is because this group are also so largely affected by the house price boom that property sales have collapsed so much.

I think the numbers that are adversley affected by boom time house prices and would like to see house prices fall is underestimated by a very large margin.

Ultimately though - support will only be gained if action is taken rather than doing nothing.

Good post.

Assuming people are capable of identifying their own best interest is a bit of a stretch, but some good points imo.

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  • 285 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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