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One in four users of Help to Buy already owns a home

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Telegraph article today: One in four users of Help to Buy already owns a home

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One in four users of the Help to Buy scheme, which was introduced five years ago to make it more affordable to get on to the property ladder, already own a home. 

Existing property owners accounted for 23.8pc of the Help to Buy mortgage completions since the Government scheme was launched in April 2013. 

So far, £2.2bn has been lent to people who already own a house – 19pc of the total £8.7bn lent.

[Don't have a Telegraph account, so can't read rest of article *]

Eh?

https://www.helptobuy.gov.uk/equity-loan/london-help-to-buy/

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Who is eligible?

London Help to Buy equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with London Help to Buy.

https://www.helptobuy.gov.uk/shared-ownership/

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You could buy a home through Help to Buy: Shared Ownership in England if:

- your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London

- you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.

* Who are these (now) multiple home owners using HTB? Maybe it's explained in the rest of the Telegraph article? Perhaps the HTB sole property rules don't apply outside London? Can many of these people be looking to move, and are selling their 1st home?

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I thought it was first time buyers as well, however, here down south it seems they allow anyone

https://www.helptobuysouth.co.uk/buying-options.asp

" The Help to Buy Equity Loan scheme is available to both first time buyers and those that have bought a property before. If you have a minimum 5% deposit and want to buy a new build home (maximum full purchase price £600,000), you'll be able to access the Help to Buy Equity Loan scheme. You will need to be able to take out a mortgage for 75% of the value of the property and the remaining 20% will be funded by the government. "

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The other figure I would love to see is based on the anecdotal 'wealthy parents buying kids houses in their names, on HTB'. Especially around university towns where student landlords have become unusually common. Nothing wrong with helping your kids in life but the perceived use of Osborne's HTB was that it would offer a hand up to those without the bank of mum and dad. Instead, anecdotally, it has become a favourite tax benefit to families who could get on perfectly well without it (whilst pushing up the prices further for those they claimed they were targeting).

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1 hour ago, frankvw said:

The other figure I would love to see is based on the anecdotal 'wealthy parents buying kids houses in their names, on HTB'. Especially around university towns where student landlords have become unusually common. Nothing wrong with helping your kids in life but the perceived use of Osborne's HTB was that it would offer a hand up to those without the bank of mum and dad. Instead, anecdotally, it has become a favourite tax benefit to families who could get on perfectly well without it (whilst pushing up the prices further for those they claimed they were targeting).

“Hopefully we will get a little housing boom and everyone will be happy as property values go up,” George Osborne is said to have quipped at a Cabinet meeting earlier this year. The Chancellor’s joke misfired; some Cabinet colleagues felt that raising the prospect of another housing bubble was no laughing matter.

This week David Cameron launched phase two of the Help to Buy scheme, designed to help people who cannot raise a big deposit to get on or move up the housing ladder with 95 per cent mortgages backed by government guarantee.

Officially, the Government plays down the threat of another housing boom, despite a rise in house prices.

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One in four users of Help to Buy already owns a home

 

Yep, not surprised at all. From a 2017 thread:

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..I'd be surprised if they can't/don't check the land registry for previous purchases.

On 14/11/2017 at 19:02, DarkHorseWaits-NoMore said:

I bet no one checks anything like that. Na, no way. Ask yourself, who would benefit by doing so?

FTB = not having a mortgage in the last 6 months. ie. anyone with a pulse.
The image that "First Time Buyer" conjures up in the general publics' ill-informed mind bares no connection with actual reality but makes a great heart warming headline.

More HPI props comming soon, sadly many on HPC will be very disappointed.

 

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    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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