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Build Now, Pay Later Homes Scheme


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Thousands of acres of publicly-owned brownfield land are to be released by the Government for housebuilding, David Cameron has announced. Up to 100,000 homes are expected to be built under the scheme, which is designed to support growth and improve affordability in the housing market.

I would have thought the Coalition (the Tories especially) would have done something a lot sooner.

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"Cash-strapped developers will be given the opportunity to pay for the land later, when properties are sold, thereby bypassing the lack of upfront finance"

Is that really the problem?

From memory at current reduced demand many developers have large land bank stocks (over 5 years).

Alternatively if it is really the problem well the MPC has been injecting money in the economy to raise/ hold asset prices up.

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For Christ's sake, the low rate of sales is not due to lack of housing.

At this price level , there is very little demand. Supply is not the issue.

The price is higher when it's brownfield. It's a bit like a lot of stuff in the UK. Prior generations make a mess then we pay more to clean it up. Everyone's a winner (everyone except young people, that is).

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if they really wanted to set the cat amongst the pigeons, they could employ the builders to bui;d the houses, then sell them at the base cost, i.e. give the land for free to the purchasers.

Then you truly could get a new house for £50k.

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so what will 100,000 houses added to current stock do to average prices, or will these be 'off the books' ?

It will depend 1) whether 100,000 houses actually get built and 2) whether the builders sell them for lower prices.

If the builders hold out for current prices, what effect will that have on the price of the existing stock?

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Let me know if you find out because i will be doing the same, i can build a perfectly good house for 30 to 40k but cant due to land prices.

Are you a volume housebuilding company that gives generous donations to the Conservative Party's coffers and is in need of a handout from the state?

If no, sorry, nothing can be done for you.

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so what will 100,000 houses added to current stock do to average prices, or will these be 'off the books' ?

All you need to know is that they will be no more "affordable" than any other place. "Affordable" is just another stupid. meaningless, government cliche soundbite. They have absolutely no intention whatsoever of making housing "affordable". If that were the case, they would have addressed it long ago.

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"Shortage of land" is a far more acceptable explanation to our difficulties than the far more unapalatable "Greedy f*****s deliberately strangling supply to boost the value of the existing stock they need to shift". But then during the boom "supply and demand" was a far more acceptable explanation to endlessly rising prices than "Greedy f*****s lying about their income and climbing over the young to bag the latest box on the market in the hope of making a fast buck". As a nation we are as much drowning in our comfortable fictions as we are debt. We'll get what we deserve.

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All you need to know is that they will be no more "affordable" than any other place. "Affordable" is just another stupid. meaningless, government cliche soundbite. They have absolutely no intention whatsoever of making housing "affordable". If that were the case, they would have addressed it long ago.

Of course not, they dont want them to be worth less as their asset companies own so many of them. They may as well just not bother with housing anymore, all they seem to bleat about it building more houses that no-one will be able to afford either (pointless).

Reducing house prices is the only way, and they wont have it. :(

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