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Pre Budgen Boost To Ftb's

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Apologies if this has been posted before:

http://uk.news.yahoo.com/05122005/325/pre-...ime-buyers.html

LONDON (Reuters) - Chancellor Gordon Brown pledged on Monday to help first-time buyers get onto the property ladder by financing part of their house purchase for them.

Provided first-time buyers can find the money to cover three-quarters of the cost of their home, the government and the mortgage lender will purchase the remaining 25 percent, effectively becoming silent partners.

"We know that shared equity has an increasing role to play in helping young couples in all our constituencies get on the first rung of the housing ladder," Brown said in his pre-budget report to parliament.

"I can announce that three of the biggest building societies and banks have joined the government as partners in shared equity."

The joint scheme between government and mortgage lenders will launch in October 2006.

Three lenders, Halifax, Nationwide and Yorkshire Building Society, will be involved in the pilot scheme, which will run for five years and will aim to help 20,000 potential homeowners get on the first rung of the housing ladder.

When the property is sold, each party takes out the proportion they put in, splitting any profits, or losses, accordingly.

"It is certainly being launched as a pilot scheme. Government and lenders will determine whether it will be opened up further when that scheme unfolds," said Nationwide spokesman Steve Blore.

Blore said details such as who would be eligible to apply for the first-time buyer assistance and what the price range of eligible homes would be, were still to be decided.

"There will be some discussion on these issues, but it is mainly down to government departments, principally the ODPM (Office of the Deputy Prime Minister)," he said.

Ray Boulger, mortgage expert with broker John Charcol, welcomed the measure but said a lot of people would be disappointed because the original plan had been to help 100,000 people, not just 20,000 in this way.

But he said it was a significant improvement on current housing association schemes.

"With the housing association you have to buy a property they already own. With this scheme buyers will be able to choose any property they like, so long as it is within the price range," he said.

Brown said shared equity schemes were also being offered by four of Britain's biggest builders, and the government was in discussions with investment companies on possible involvement.

"Our aim: a new consensus across our country on the extension of home ownership and affordable housing - public and private sectors working and investing together to strengthen our economy, protect the environment and meet the housing needs not just of some but of all," Brown said.

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Apologies if this has been posted before:

http://uk.news.yahoo.com/05122005/325/pre-...ime-buyers.html

So how have the buy-to-letters faired today?

They lose 40% of the value of their property because the SIPPS are gone.

They gain 33% because first time buyers will be able to pay more for their houses.

They gain X% because the planning permission tax stops any new housing being built.

I think it's pretty close but on balance they are worse off.

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So how have the buy-to-letters faired today?

They lose 40% of the value of their property because the SIPPS are gone.

They gain 33% because first time buyers will be able to pay more for their houses.

They gain X% because the planning permission tax stops any new housing being built.

I think it's pretty close but on balance they are worse off.

And the Stamp duty trap also:

Ouch!

"BUY-TO-LET investors, are being hit with big bills after the Revenue and Customs began exploiting a completely unrelated measure included in last year's Finance Act to clamp down on stamp duty avoidance.

With confidence in pensions at a low, more people are relying on portfolios of property to provide for them in old age.

Yet buy-to-let investors have seen their stamp duty bills soar after a change of tack by the Revenue over the tax.

Stamp duty is charged on all transactions, and it rises in bands along with the value of the purchase. Below £120,000 it is zero, then it is charged at 1% up to £250,000, 3% up to £500,000 and 4% above this threshold. Once a band is breached, the higher rate is charged on the entire value.

However, some investors have recently been shocked to discover that instead of paying stamp duty on each individual property, as they expected, the Revenue has begun totalling up the value of properties bought and applying the highest rate of tax to the aggregate sum.

So, for example, an investor might buy five properties at £120,000 and expect to pay no stamp duty at all. Now, however, the values are being added up, and a 4% charge is levied on the whole sum, producing a £24,000 bill.

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  • 301 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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