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dryrot

Mail(!) Are developers inflating the prices of homes through Help To Buy?

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Hi

From the DM, of all places!

http://www.thisismoney.co.uk/money/mortgageshome/article-6107805/Are-developers-inflating-prices-homes-sold-Help-Buy.html 

"Are developers inflating the prices of homes through Help To Buy? That's what these buyers believe after they were offered a 'luxury' £425k two-bed flat... that's almost as much as three-bed HOUSES nearby. Lee Gornall and fiancee Paige Augar are desperate to get on the housing ladder/They found a 762 sq ft two-bed flat for £425,000 available through the scheme/But just down the road a 1,330 sq ft three-bedroom house is up for £410,000"

Lee and Paige, thankfully, did'nt take the offer, even after they were offered "cashback"...

"Lee and Paige started to get cold feet when they tried to arrange a second viewing. The agent they had been dealing with at Kinleigh Folkard & Hayward said the company was no longer marketing the properties and advised the couple to contact the developer, the London housing association L&Q. When they told L&Q that they were worried about the price of the property, they were offered £13,500 cashback."

Very critical article from the DM!

Edited by dryrot
spell

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I have my issues with social media in so many ways, still like the wild west. But articles like this in the DM and there are many others shows that the media is years behind some obvious stories. When an if the property crash reaches -30 to -50% plus many of the posts and threads that have been on HPC.com will become mainstream news, 10 years too late.

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Still, good to see it there in black and white for the information (perhaps) of the clueless. 

HTB has just exacerbated the newbuild premium anyway.  Well before  it was even introduced, when a daughter was looking to buy in SW17 (she never did) I remember  wondering who on earth was buying newbuild one beds of about 45 sq m, with nowhere to put anything and hefty service charges on top, when there were were 2 beds of nearly 70sq m, with next to no charges, not far away, in nicer roads, for the same or a bit less.

Though  of course the oldbuilds did not have a shiny, cunningly interior-designed 'stylish' show home, with twigs and pebbles and lime green cushions on the oh so trendy grey bedding.  

 

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1 hour ago, Council estate capitalist said:

The "Cashback" part is of interest. 

Surely if you represent to the mortgage company that the price of a property is say £200,000 but neglect to tell them that the real purchase price is actually £180,000 after your "cashback" then this would amount to mortgage fraud?

I'm not sure, but offers like having stamp duty paid, or receiving free furniture seem to be fairly common. I've even heard things like putting £5,000 on an oyster card. If these are legal (I'd assume they are, because they are often advertised), would cashback be treated differently?

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Interesting when you read the comments on that article.

The vast majority of them are critical of HTB .... and yet when you click on the  'best rated' comment it's supposedly from someone who thinks HTB is a great idea and ''should be extended to all houses old and new'' (it was also one of the first comments on the article)

 

Bit of DM vested interest comment manipulation going on there I suspect.

Edited by nome

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  • 259 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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