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@contradevian

Starter Homes Plan Unravelling

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A government scheme that incentivises buyers to overpay for houses. Who would have thought it?

http://www.insidehousing.co.uk/business/development/government-schemes/lenders-against-starter-homes-unless-policy-is-changed/7014211.article?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Major lenders have warned government officials they will not support Starter Homes unless ministers agree to a major climbdown over the discount period.

An “impasse” has been reached between a number of major lenders and the government over its plans to allow buyers to sell the flagship housing product at full market value after five years, Inside Housingcan reveal.

This would allow buyers to cash in the original 20% discount, meaning they could make profits of £141,000 by selling an average home bought under the scheme after five years.

Large lenders have now reached a deadlock with government, as they fear this could distort market values and incentivise people to overpay.

Edited by RentierParadisio

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Imagine any other industry where the government would let you off paying your taxes on condition you offered a 20 per cent discount on your products to under 40s.

Barmy, ageist and ridiculous. Also removes the funding councils get from planning deals for infrastructure, new schools, play areas and roads etc. Maybe those under 40s getting these discounts should be put at the bottom of the queue for school places for their kids?

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Imagine any other industry where the government would let you off paying your taxes on condition you offered a 20 per cent discount on your products to under 40s.

Imagine a country where corruption and fraud are met with life in prison ?

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The 141k comes from an assumption of 5 years of 5% house price inflation, if I remember correctly. The original 'discount' is less.

The maximum 'discount' outside London is 50k off a 250k house, and inside London it's 90k off a 450k house.

Still not convinced:

  • That the 'discount' will be a real discount and not an ephemeral price change back to what it would have sold for anyway.
  • That giving this discount to 200,000 random FtBs will do anything to help the priced out generation as a whole.
  • That 'starter homes' will be in the locations people need to live (i.e. near their jobs).
  • That new-builds built to current building 'standards' are worth anything whatsoever, never mind quarter or half a million pounds.

Every government scheme is just another desperate attempt to prevent real price discovery by bridging the gap between what people can afford to pay and the fantasy 'valuations' which appear to be based on nothing at all.

I opened a HtB ISA because I felt forced to. But I have no clue how I get on the list for a 'starter home', or what the criteria for getting a house are should the scheme be oversubscribed. I'm not sure I'd want one anyway - why should I need a government scheme to house myself?

Here in London, 80% of 450k is 360k. If the government thinks that is affordable for anyone other than a family with two high-paid professional workers planning to spend their entire incomes on the mortgage and without children (or the hope of them for the next 25 years), they're mad.

I very much hope I can find a better option than this.

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From memory on the Kaiser show they were describing the scheme as a lottery as if everyone had a ticket with a chance to win.

Indeed how does one get on the latest scam scheme - everyone should be queueing up for a ticket or is it just for a select few insiders yet again.

Edited by billybong

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The 'Starter Home' scheme. What happened?

The Starter Home website you couldn't find was launched in February 2015 under the Coalition Government. It has since been replaced. However, doubts have since been raised about the viability of the scheme and so far not a single starter home has been built. Nor could the Government say when any might start to be built. The box, left, explains how the scheme is supposed to operate. Not everyone is convinced about the viability of the scheme.

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Funny looking at gidiots twitter feed on HtB. Every reply castigates him. Do they ever read their replies.

Why are politicians even on twitter. They only embarrass themselves and never reply to replies unless they are by sycophants.

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"Do they even read replies" you ask. Is this assuming he actually uses Twitter - it's clearly a SpAd.

Being a politician nowadays isn't about listening to the little people. If the housebuilders want something done, they'll donate more to the Tories, and it'll get done. People on Twitter waste their time tweeting people in power, they don't care.

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