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Bruce Banner

7,313 Homes Have Been Sold So Far Under Help To Buy

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http://www.bbc.com/news/business-27608313

Some 7,313 homes have been sold so far under the Help to Buy mortgage guarantee scheme, the Treasury says.

The figures are the first comprehensive measure of the scheme since it was launched late last year.

The numbers from the Treasury also show that 80% of the properties sold went to first-time buyers.

The majority of sales were outside London, which will help the government to argue that Help to Buy has not had a major effect on house prices.

Just 5% of sales under the mortgage guarantee scheme were in the capital, where prices have soared, and 14% in the South East.

Liberal Democrat Business Secretary Vince Cable is among those who have argued that Help to Buy may be stoking house price inflation.

Prices across the UK are rising by 8% a year, according to the Office for National Statistics, and by 17% a year in London.

The Help to Buy figures officially cover the first three months of 2014, but include all applications since October 2013, when homebuyers were first able to register for the mortgage guarantee scheme.

"The majority of sales were outside London, which will help the government to argue that Help to Buy has not had a major effect on house prices."

Well that's alright then, help to buy is not causing prices to rise :rolleyes:.

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It was Funding for lending that reduced mortgage rates from 4% to 2.5% thus improving repayment affordability and giving buyers more leverage to push up prices.

Again it's the central bank blowing bubbles.

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I've just seen the Foxtons area manger for Westminster on the telly telling me there isn't a boom.

Ok then.

So how is it that a house in my old street in NE London is now selling for half a million pounds?

I repeat, half a million pounds.

******ing Tory spiv.

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Housing Minister, Chris Hopkins was just on BBC News. He thinks HTB is wonderful.

He mentioned Labour's unsustainable housing boom, I'm not sure what he was on about there as Cameron said there is no bubble as prices are still below the 2007 peak. Looks like they're trying to make the unsustainable, sustainable :wacko:.

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7,313 chains completed at 2007+20% peak prices due to government help to banks scheme.

Each one of those chained sales will have reflected on the housing indexes.

They must think evberyone is stupid, no wonder everyone voted UKIP.

Edited by TheCountOfNowhere

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Wait a minute - there could be a good social side to this.

If 'Help to Buy' is limited to FTBs, while other measures (eg stricter mortgage rules, Capital Gains tax on foreign buyers) choke off BTLs and multiple house owners, 'Help to Buy' could help redistribute houses from the 'haves' to the 'have nots'. Robin Hood for bricks and mortar.

What we really need is a breakdown of data, showing exactly who buys houses nowadays (given that they cost a zillion times the average wage)

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BBC News are repeating, over and over again, that 80% of HTB mortgages went to first time buyers as if this is a good thing.

80% of 7,313 is 5,850, so 5,850 "hard working" first time buyers have been encouraged to "get on the ladder" at the top of the market.... nice one Cameron and Osborne, this is why we voted for you :rolleyes: ..... never again...... it's UKIP for me until those jokers are replaced.

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Housing Minister, Chris Hopkins was just on BBC News. He thinks HTB is wonderful.

He mentioned Labour's unsustainable housing boom, I'm not sure what he was on about there as Cameron said there is no bubble as prices are still below the 2007 peak. Looks like they're trying to make the unsustainable, sustainable :wacko:.

Reminds me of a couple of years back with labours meme on 'tory ideologically driven cuts'...as if browns 2008/9 cuts (of which there were actually many) were somehow 'different'

Rhetoric is the only remaining difference between them.

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house prices are still 13% below the peak of 2007....

:rolleyes::rolleyes::rolleyes:

Yeh in 2007 !

WHEN THEY WERE TRIPLED IN PRICE BY A DECADE LONG CREDIT BINGE, YOU MOON-FACED SPUNK-TRUMPET.

That was for Cameron, not you Bruce.

Don't you just love the way idiots like cameron use the peak of 2007 as some kind of target to get back to and build from, without firstly questioning why it became a peak and secondly, contemplating the consequences of rolling down the other side?

Edited by Reck B

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Cameron on now, with a building site in the background, spinning for all he's worth.

Help to buy is a success.... house prices are still 13% below the peak of 2007....

:rolleyes::rolleyes::rolleyes:

But now 8% more expensive country wide and 18% more expensive if you live in London - I expect he fails to mention that.

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But now 8% more expensive country wide and 18% more expensive if you live in London - I expect he fails to mention that.

That begs the question....who have the property owning chancellor and PM helped ?

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The problem isn't how much house prices are rising but that they have risen at all! A financial crisis caused by excessive private borrowing is being recreated using govt subsidy. As policy goes it's hard to think of anything more divorced from economic sanity.

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6,000 FTBs using HTB2 is a much higher % of ALL FTBs buyers, more so FTBs buying with a mtge.

Those are the prices they're pushing up and non-HTB FTBs are competing against.

Moreover, you only have to prevent average prices from falling and get them to rise to change sentiment. People don't buy assets that are falling in price, they buy assets that are rising in (nominal) price.

Neal Hudson @resi_analyst 4h

Help2Buy2 distribution of property values pic.twitter.com/UsSxCNvSod

BoykHHgCYAAgUFC.png
Edited by R K

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Andrew Sentance of PWC, who was a member of the MPC between 2006 and 2011, has just been interviewed on BBC News. He made it quite clear that Help to Buy is inflationary and not in the long term interest of first time buyers.

A breath of fresh air following on from Cameron, on a building site, in his hard hat and yellow jacket.

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You'll probably find that the total amount lent on those 7% of properties above £250,000 is greater though.

I would think so too, funny those figures don't seem to be quoted in the media. .

I liked the table on the link but couldn't post it as a table, only in plain text

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Wait a minute - there could be a good social side to this.

If 'Help to Buy' is limited to FTBs, while other measures (eg stricter mortgage rules, Capital Gains tax on foreign buyers) choke off BTLs and multiple house owners, 'Help to Buy' could help redistribute houses from the 'haves' to the 'have nots'. Robin Hood for bricks and mortar.

What we really need is a breakdown of data, showing exactly who buys houses nowadays (given that they cost a zillion times the average wage)

Don't know about Help To Buy, but after I STR, I was able to get an 'FTB only home save' account with Santander and according to the solicitor and Nationwide whom my new mortgage is with I'm still classed as an FTB as I don't own another home.

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Don't know about Help To Buy, but after I STR, I was able to get an 'FTB only home save' account with Santander and according to the solicitor and Nationwide whom my new mortgage is with I'm still classed as an FTB as I don't own another home.

Good point. FTB often classed by lenders as someone who hasn't had a mortgage in 6 months.

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Given the comments of Danny Alexander on sunday and now the PM I think it's fair to say that there isn't going to be any scaling back of HTB2.

In fact, I still think we'll have further stimulus before the election - probably suspension of stamp duty below £250K.

Edited by oldsport

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