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Extending help-to-buy will only make the housing crisis worse


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35 minutes ago, highcontrast said:

I dont think htb creates a crisis. Scheme is only available for new houses.

I think it drives up cost of new build by 30% an is solvency threatening bad value for the buyer.

If ukgov wants more houses built then it needs to se 5 year use it ir lose on planning for land.

And they need to look at getting foriegn I.e germsn building companies into the UK. UK house builders are shit.

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Another bearish article. It seems the mainstream media have finally removed their rose tinted spectacles and are seeing the truth of this mess for what people on this site knew all along.

'In Britain, we’ve seen our fair share of disastrous policies in recent years, but few have been as predictably self-defeating as help-to-buy. Introduced by George Osborne in 2013 as a means of helping people onto the housing ladder, it was clear from the outset that the policy would do more harm than good.' Really? You mean it was actually help to get elected and make some money for his chums? Good lord, well he had me fooled ...

'The Financial Conduct Authority warned that help-to-buy customers are more exposed to changes in “economic conditions”, and face a greater risk of negative equity.' Well I never!

And the comments section isn't friendly toward failed government policies either.

All good HPC news

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On 01/08/2020 at 10:24, longgone said:

has anyone lost anymore money yet on resale ? sob stories ?

I don't know specifically about Help To Buy losses, but around my way we have a lot of the evil twin brother that is Shared Ownership.  The brand new Shared Ownership are getting snapped up for insane money, but the second-hand ones don't get bought at all, even though you get a bigger share for significantly less money.  All those buying the new Shared Ownerships aren't looking at those that have come before them and thinking "Hang on, this could be a mistake unless we are planning to live here forever and ever and ever".

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2 hours ago, stop_the_craziness said:

The brand new Shared Ownership are getting snapped up for insane money, but the second-hand ones don't get bought at all, even though you get a bigger share for significantly less money.

I've often noticed this. I went to a development shared ownership 2nd phase release event and it was rammed. Yet, the 1st phase resales have no takers, even though they are the same group of people notified.

People are taken in by the newness. They want an Instagram picture of themselves standing in front of a new door with a bow on it.  

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1 hour ago, sammersmith said:

I've often noticed this. I went to a development shared ownership 2nd phase release event and it was rammed. Yet, the 1st phase resales have no takers, even though they are the same group of people notified.

People are taken in by the newness. They want an Instagram picture of themselves standing in front of a new door with a bow on it.  

Exactly that, new builds are a terrible purchase unless it's an upcoming area. I have seen, a couple of plots around Birmingham increase on average by 100k after the five year mark, but these a rare.

The rest cannot shift them, nobody will buy them at that price, normally takes about 10 years before they level and the sellers starts being sensible.

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Help to Buy is a criminal system. It makes everyone to lose. Housebuyers are paying inflated prices. Banks are giving loans that will soon go underwater. Government loans money that are unlikely to be ever repaid.

The real beneficiaries are rich landlords, and construction company shareholders/directors who parasite on taxpayers money and the working class.

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11 hours ago, stop_the_craziness said:

I don't know specifically about Help To Buy losses, but around my way we have a lot of the evil twin brother that is Shared Ownership.  The brand new Shared Ownership are getting snapped up for insane money, but the second-hand ones don't get bought at all, even though you get a bigger share for significantly less money.  All those buying the new Shared Ownerships aren't looking at those that have come before them and thinking "Hang on, this could be a mistake unless we are planning to live here forever and ever and ever".

maybe HTB is still too early in the process, after all its only a couple of years since the holiday ended and they would have increased in value, not sure about the last knocking of htb though. 

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33 minutes ago, ForGreatLager... said:

This is currently trending at the top of Twitter. The vast majority of tweets understand it’s a total scam. There’s a few MSM articles about it now. Hopefully this latest extension is the last ?

Saw the same , people are understanding that all it does it make them take 2 loans ( gov loan .Mortgage ) and increase the prices ..its does nothing for affordability 

 

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  • 417 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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