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Bear Goggles

Government to end Help to Buy

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Apologies if already posted, but this is an interesting development.

Telegraph: Theresa May's Government reveals end of help-to-buy mortgages in new break with David Cameron

According to Hammond, the aim of the policy has been successfully achieved - not quite sure what that aim was, but I'm assuming it was to push house prices even further out of reach of anyone who works for a living - mission accomplished. Slow hand clap.

The deposit saving calculator on that page is fun too - The average Londoner only needs to save about £7k per month to save a 20% deposit for the average house within the next 15 years. They should have a "We had it hard too" calculator for boomers on that page, so they can see how many iPad purchases per week feckless young people need to forego in order to save for a modest home before the retirement date they would have had if final salary pensions still existed..

 

 

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10 minutes ago, Trampa501 said:

Hammond could..... (as yet we don't know)...but looks promising.

This was due to end anyway, he is still going all in with HTB1, HTB 40% and HTB Furnish your house for free.

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Presumably if it's ended on existing homes and that's negative for existing house prices then that will increase the new/existing house price premium and new properties will tend to fall as well to catch up.

Edited by billybong

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1 hour ago, Trampa501 said:

Hammond could..... (as yet we don't know)...but looks promising.

 

It's obviously clear break for Osborne's policy of buying votes with subsidies to people they think will be future Tory voters. I think the Brexit vote has probably signalled that that kind of policy has reached the end of the line. Ultimately chasing an ever smaller number of the chosen few is yielding diminishing returns, it worked really well when there were millions of council houses to sell off, not quite so well, when it was middle class kids saving for a deposit to top up their BOMAD money, and not well at all once even doctors and lawyers under 35 are priced-out of housing.

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That part of the scheme was supposed to be put to sleep in December anyway, any the reasoning now seems to be that "no need for scheme, as people are able to obtain massive credit easily with no savings whatsoever", which speaks volumes about May's mindset and doesn't exactly fulfill me with confidence.

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4 hours ago, Bear Goggles said:

 

It's obviously clear break for Osborne's policy of buying votes with subsidies to people they think will be future Tory voters. I think the Brexit vote has probably signalled that that kind of policy has reached the end of the line. Ultimately chasing an ever smaller number of the chosen few is yielding diminishing returns, it worked really well when there were millions of council houses to sell off, not quite so well, when it was middle class kids saving for a deposit to top up their BOMAD money, and not well at all once even doctors and lawyers under 35 are priced-out of housing.

I wonder if Sadiq Khan's very large win in London (as well as Brexit vote) has made them sit up and realise that a large chunk of the electorate are savvy and not benefiting from the status quo?

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49 minutes ago, fru-gal said:

I wonder if Sadiq Khan's very large win in London (as well as Brexit vote) has made them sit up and realise that a large chunk of the electorate are savvy and not benefiting from the status quo?

Their LibLabCon stealth coalition also kept a lot of MPs and perhaps even most of their leaders effectively right out of touch.  That along with the relentless nonsense propaganda distributed by their media.  

It's been ultimately self defeating.  The London vote and the referendum vote has been a wake up call for them but whether they're going to actually wake up is another matter altogether.

Edited by billybong

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isn't this the scheme that together with funding for lending fired the starting gun on the recent surge in prices??

the end of the scheme has to be good news. From my understanding it was a blatant and outrageous distortion of the market to inflate prices to benefit the rich.

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17 minutes ago, Wayward said:

isn't this the scheme that together with funding for lending fired the starting gun on the recent surge in prices??

the end of the scheme has to be good news. From my understanding it was a blatant and outrageous distortion of the market to inflate prices to benefit the rich.

Yes thats the one that kicked off Gidiots "nice little property boom".

Edited by Crumbless

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2 hours ago, fru-gal said:

I wonder if Sadiq Khan's very large win in London (as well as Brexit vote) has made them sit up and realise that a large chunk of the electorate are savvy and not benefiting from the status quo?

I think so. I read an article by Nick Clegg where he said any mention of affordable of social housing prompted Osborne to say that building that would just create more Labour voters. The trouble is, letting them rot in insecure private rented housing as parasite BTL fodder has just created more radicalised voters, be they liberal middle class socialists or socially conservative UKIP voters. 

Ultimately, having no vision for a better future, and just trying to perform electoral engineering to guide your actions was bound to unravel sooner or later. 

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In an indication that the Government is likely to unveil new measures to help first-time buyers, Mr Hammond said: "It is important to note that the end of this particular scheme does not diminish in any way the government’s commitment to supporting those looking to get on the housing ladder”.

Oh dear, more help :(.

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Two Financial Times articles that indicate which way the wind is blowing regarding government housing policy (non-subscribers will hopefully be able to access via Google):

Sept 13: Tories shift priority from mass home ownership

Sept 30: UK still open to European builders after Brexit, says Javid

From the second article:

Quote

Meanwhile, in an implicit criticism of David Cameron’s government, Mr Javid said that he intended to focus on supply volumes rather than boosting home ownership through demand subsidies.

 

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9 hours ago, fru-gal said:

I wonder if Sadiq Khan's very large win in London (as well as Brexit vote) has made them sit up and realise that a large chunk of the electorate are savvy and not benefiting from the status quo?

Sadiq Khan is a 'business as usual' politician, not a radical reformer.

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6 hours ago, FreeTrader said:

Two Financial Times articles that indicate which way the wind is blowing regarding government housing policy (non-subscribers will hopefully be able to access via Google):

Sept 13: Tories shift priority from mass home ownership

Sept 30: UK still open to European builders after Brexit, says Javid

From the second article:

 

Could Mrs May be a new broom after all?

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6 hours ago, FreeTrader said:

Two Financial Times articles that indicate which way the wind is blowing regarding government housing policy (non-subscribers will hopefully be able to access via Google):

Sept 13: Tories shift priority from mass home ownership

Sept 30: UK still open to European builders after Brexit, says Javid

From the second article:

 

So to solve the debt crisis they created more debt. Now to solve the fact that people don't want to rent they're letting the corporations farm us plebs by allowing them to build lots more rented property. Its just business as usual.

From working in Europe i believe its a myth that Europeans want to rent as 100% of Germans, Dutch and Norwegians i've worked with from the traded classes and spoken to about property want to own their house. 

James Pargeter, a director at Greystar, the $13bn US housing group that is preparing to build at least 2,000 rented homes on the London outskirts, said Mr Barwell’s speech was “very welcome”.

Funny how there is no land shortage when a corporation with deep pockets comes along.

Raise interest rates and bring in S24 overnight and the housing crisis will be resolved overnight,

This comment truly sums up the insanity of UK housing-

@micawber sure, but you are missing the bigger picture here. London prices increased on avg by 50K GBP in the last year. That is way over the average wage and for the rentier land inflation is their job. And far too many are living off the backs of wealth creators. Even Cameron made more in his time as PM from rent and house price inflation!

What exactly is the point in doing anything in the UK when you basically turn it all over to the banks and landlords?

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10 hours ago, Bruce Banner said:

 

Oh dear, more help :(.

More words.

That statement is to cover criticism that they are abandoning aspiration and Hard Working Families etc. Their actions are what counts. It's going to be interesting to see how this plays out, but I think there's a general acceptance amongst the new Tory leadership that previous policy has failed, whether they can come up with anything better remains to be seen.

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5 hours ago, Dorkins said:

Sadiq Khan is a 'business as usual' politician, not a radical reformer.

Indeed, but he is a Labour politician, you know, that party that is completely unelectable and a danger to your family and national security. Only nutcases would vote for representatives of such party, a fringe group of loonies who only make up the majority of the voting public in the most important city in the country.

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23 hours ago, Democorruptcy said:

This is just the Mortgage Guarantee on existing houses, i.e. our taxes paid to bankers if those houses are sold at a loss in the future.

The equity loan on new builds will continue

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/556650/letter_from_chancellor_to_bank_of_england_governor.pdf

Just my take on things, but I doubt they'll wind-up the equity loans scheme until they've announced a flagship policy that will, to some degree, take its place. If we get a direction of travel at the Conservative conference and then an announcement at the Autumn Statement then winding it up looks a likely consequence of a change in policy. If we get a new flagship policy and still no change on equity loans, that would be significant. On balance, given the noises so far from Barwell, and this move on mortgage guarantees, I'd be pretty surprised if we haven't seen the announcement of the planned end date for Help to Buy equity loans at some point in the next six months.

Help to Buy equity loans was a policy which was held be many (including me) to be one of Osborne's more significant pieces of outright idiocy, so the chances of it surviving him indefinitely have got to be pretty marginal.

Edited by Bland Unsight

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59 minutes ago, Bland Unsight said:

Just my take on things, but I doubt they'll wind-up the equity loans scheme until they've announced a flagship policy that will, to some degree, take its place. If we get a direction of travel at the Conservative conference and then an announcement at the Autumn Statement then winding it up looks a likely consequence of a change in policy. If we get a new flagship policy and still no change on equity loans, that would be significant. On balance, given the noises so far from Barwell, and this move on mortgage guarantees, I'd be pretty surprised if we haven't seen the announcement of the planned end date for Help to Buy equity loans at some point in the next six months.

Help to Buy equity loans was a policy which was held be many (including me) to be one of Osborne's more significant pieces of outright idiocy, so the chances of it surviving him indefinitely have got to be pretty marginal.

I've always said on here that I couldn't see how they could ever end HTB equity loan overnight. It would be crashtastic. Freetrader wouldn't be able to keep up with his new build losers thread as the newer new builds would have to be much cheaper. I still think it can only be tapered down over several years.

Osbanker had already set the date for this HTB2 mortgage guarantee (guarantee for bankers not buyers!) to end. I had wondered if he might then extend the equity loan scheme to existing houses but maybe that's unlikely, for now.

 

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16 hours ago, Dorkins said:

Sadiq Khan is a 'businessanking as usual' politician, not a radical reformer.

Couldn't agree more.

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11 hours ago, Bear Goggles said:

Indeed, but he is a Labour politician, you know, that party that is completely unelectable and a danger to your family and national security. Only nutcases would vote for representatives of such party, a fringe group of loonies who only make up the majority of the voting public in the most important city in the country.

Clearly electable in London. which undermines the point you appear to be making.Any attempt to portray Khan as anything but an establishment politician  is disingenuous.

 

Corbyn ....Where was he when they were hoising taxpayers to keep Fred the Shred in pension moolaa?

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On 10/1/2016 at 10:16 PM, Sancho Panza said:

Clearly electable in London. which undermines the point you appear to be making.Any attempt to portray Khan as anything but an establishment politician  is disingenuous.

 

Corbyn ....Where was he when they were hoising taxpayers to keep Fred the Shred in pension moolaa?

Sorry, just noticed this. It appears my sarcasm was not obvious enough.

I was referring to Cameron's declaration after Corbyn was elected leader that the Labour party had apparently become a "threat to national security",  which was an attempt to paint them as unelectable, shortly before they were elected in London. In a similar way he declared UKIP "nutters and fruitcakes" within a year of the UK voting to leave the EU.

So I'm agreeing with you - Khan is an establishment politician, and attempts to portray him as radical are disingenuous. There have been a lot of attempts by government to tar people who disagree with them with the radicalism brush recently, don't you think?

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