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juice05

Help to buy could end early

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Story doing it's round. Home building stocks down 4%. Unfortunately have to register to view which I can't do right now...

"The government has embarked on a review of the Help to Buy housing scheme, which could result in it being wound down or replaced before its scheduled end in April 2021...."

http://m.propertyweek.com/5090767.article?mobilesite=enabled

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My initial guess, from Hammond's recent form, is they're scratching around for money to reduce the deficit and hosing money pointlessly at the housing market is a good thing to get rid of.

 

Could be wrong.

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Hammond has a very different view on economics to Osbourne and believes rather more in a fair market it’s on reason why S24 (that doesn’t impact him) will not be removed and why I suspect he may extend it.

and the government now know that house prices are going to stop them winning future elections. Best to remove every prop asap and let the market find a new lower equilibrium 

 

 

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11 minutes ago, Houdini said:

Hammond has a very different view on economics to Osbourne and believes rather more in a fair market it’s on reason why S24 (that doesn’t impact him) will not be removed and why I suspect he may extend it.

and the government now know that house prices are going to stop them winning future elections. Best to remove every prop asap and let the market find a new lower equilibrium 

 

 

The only major argument against that is the existence of Carney as boe gvnr

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1 minute ago, moonriver said:

Any idea when Carney is due to move on?

2019 I believe.

 

Also, what about HTB ISA and even lifetime ISA.  ?

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2 minutes ago, Si1 said:

2019 I believe.

 

Also, what about HTB ISA and even lifetime ISA.  ?

I think they read somewhere these have not had a big uptake due to ether being too complicated or not many banks offerring them. But even if that is right, they must of been introduced as yet another prop to housing.

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4 minutes ago, TheCountOfNowhere said:

April 2021...we're paying those f**king crooks till then.

 

Someone, for goodness sake, phone the police

 2021!

So proof this government are holding hands with Carney?

So depressing it all is.

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Given that the recent price drops we see still have some way to go before houses are affordable for people who have to pay with their own wages, ending HTB now implies it was just a prop to increase house prices.

Edited by Arpeggio

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17 minutes ago, moonriver said:

 2021!

So proof this government are holding hands with Carney?

So depressing it all is.

The question raises itself - who would replace him anyway?

 

I think there's a chance they may seek to restructure the boe when he goes and reduce their power, so there's less point replacing him in the interim.

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3 minutes ago, Mrs Bear said:

My first thought was that's it's a ploy to encourage people to buy now. 

Hurry!  Offer ends Monday! - same tactics.  

Thinks the telegraphed withdrawal of miras many moons ago.

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33 minutes ago, moonriver said:

I think they read somewhere these have not had a big uptake due to ether being too complicated or not many banks offerring them. But even if that is right, they must of been introduced as yet another prop to housing.

The Lifetime ISA scares the **** out of most banks due to the penalty for withdrawal (not that much actually, 5%), the HTB ISA however has a maximum savings target date (for those who jumped in right at the start like myself), mid 2020. Why on earth would they want create this target date whilst prices skyrocket in the mean time, rendering the 250k price limit useless. In my biased mind I'd like to think they knew prices would cyclically drop and a whole new generation would buy just in time for the 2020 GE, which has now been postponed.

Whilst I understand many aren't a fan of free hand outs, the HTB ISA is very different to HTB loan incentives, the £3k maximum government bonus is half of feck all really, especially if things don't change drastically in the next 3 years.

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8 minutes ago, juice05 said:

Gov issued statement saying this is incorrect and they gonna keep pumping

So have builders shares bounced back?

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1 hour ago, juice05 said:

Story doing it's round. Home building stocks down 4%. Unfortunately have to register to view which I can't do right now...

"The government has embarked on a review of the Help to Buy housing scheme, which could result in it being wound down or replaced before its scheduled end in April 2021...."

http://m.propertyweek.com/5090767.article?mobilesite=enabled

So where did this rumour come from? A civil servant leaking?

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21 minutes ago, juice05 said:

Gov issued statement saying this is incorrect and they gonna keep pumping

Will be interesting in a few years ( if it takes that long ) when those who used HTB find them need or want to move and can't as people won't pay the full asking price when HTB is not available to people not buying property thats brand new.

You already have adverts where the price shown is the price without HTB because listing it at the full price would gather less interest .

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1 hour ago, Si1 said:

My initial guess, from Hammond's recent form, is they're scratching around for money to reduce the deficit and hosing money pointlessly at the housing market is a good thing to get rid of.

 

Could be wrong.

But it's not pointless from his point of view - the mortgage market is a massive engine of private credit creation.  If people stopped creating new credit through borrowing enormous amounts of 'money' into existence to buy property, there would be serious implications for the supply of credit into the wider economy.  They have put themselves into a position where they have to try to keep the plates spinning.

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8 minutes ago, Sour Mash said:

But it's not pointless from his point of view - the mortgage market is a massive engine of private credit creation.  If people stopped creating new credit through borrowing enormous amounts of 'money' into existence to buy property, there would be serious implications for the supply of credit into the wider economy.  They have put themselves into a position where they have to try to keep the plates spinning.

Indeed. But what if it's an ex parrot, so to speak?

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6 minutes ago, Bruce Banner said:

He said recently that he will be staying until his daughter finishes school. Time to sack the banker, methinks.

I heard that.. I think he'll be off in about 2 years. He wont complete his term.

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12 minutes ago, Bruce Banner said:

He said recently that he will be staying until his daughter finishes school. Time to sack the banker, methinks.

He's just like forest gump, who sat doing f**k all, all day, waiting for his child to finish school.

 

 

gump.png

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