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Plans for 30% Discount on Homes for Key Workers and First Time Buyers


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The trouble with these schemes is they never seem to represent a real discount. 

If it were the case that key workers could just select any house thry wanted and apply for a 30% grant as part of their financing arrangements so be it but I don't doubt it'll be new developers building expensive houses which are over priced by roughly the amount if the government grant (much like the early help to buy schemes). Then it just becomes a transfer from government to the builders and the key workers are still left with enormous mortgages. 

Might be being overly cynical, mind. 

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So that means that prices will go up by 30%. 
 

Honestly, what’s the point of having a government if the only thing it seems they could do is throwing money at any given issue? 
 

Wheres the expertise to put down a serious housing housing plan for the country? 
 

We love to tell each other that the money is not in the vault. However, I do read these articles and I think the £££ is there, it’s just they spend it unwisely. 

Edited by Neapolitan
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4 minutes ago, Neapolitan said:

So that means that prices will go up by 30%. 
 

Exactly. 

Anybody else that wants to buy in these developments has to pay the premium now, existing houses also rise because of comparator sales impacting mortgage valuations. 

Nice bribe to house builders and the key workers to boot. Job done, back in the bar for port and cigars by 9. 

Yet people, including some on this forum, lap this shit up because of some vague tough talk about immigration and finance, both if which this government's actions show to be a complete con. 

What's it going to take for people to wake up? 

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If anyone thinks this will be 30% off any sale price of any property - you need your head examined.

As someone just said, it'll simply be a 30% subsidy to help housebuilders up their prices by the same amount, all in an effort to help sustain house price inflation.

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13 minutes ago, Blink said:

If anyone thinks this will be 30% off any sale price of any property - you need your head examined.

As someone just said, it'll simply be a 30% subsidy to help housebuilders up their prices by the same amount, all in an effort to help sustain house price inflation.

Spot on. 
 

“A nice 55 sqm two bed flat, ideal for a FTB in this new development in London. Close to the M25 and only 30 minutes to Waterloo station. The flat has the highest specification currently available, gym and pool. 120 year lease, 400 pounds per month service charge. £725000 pounds but with the Gov discount could be yours for only £499000. (Yes we are crazy, we apply a further discount!!) No stamp duty! Hurry up, only few remaining. Help to Buy applies too! You just need 25000 and this gem could be yours!”

Edited by Neapolitan
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9 hours ago, LesDawson said:

How long would such a bill take to pass ?

Still waiting for the promise of S21 being abolished. The tenant fees ban took an age to become law following first announcement and only applied to existing tenancies from June this year. 

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Also in the Mirror.... Reading this, their "First Homes" scheme sounds like a disguised help for BTL'ers scheme?.....

https://www.mirror.co.uk/news/politics/7-awkward-details-small-print-22479301

7 awkward details in the small print of Tories' 30% house price discount plan

It's a pilot for 1500 homes, people earning up to 90k can benefit, it means fewer affordable houses to rent, its unclear how key workers will get priority (so they probably won't), buyers don't need to be local....you don't have to be a FTB...and they can let it out!

eg..The article says "So the government says in "certain, limited circumstances", people who aren't first-time buyers will be able to benefit from the scheme. The government will publish a list of circumstances under which non-first-time buyers can be eligible for First Homes."

.... "First Home buyers will need to occupy the home as their "primary residence" . However, they'll then be allowed to let them out for up to two years - as long as they notify the local council..."the two-year period could be extended in certain circumstances, with the council's permission", "Buyers will also be able to let out their home short-term if they go on holiday"..

 

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Surprise surprise another prop. The people who said that the government had no more props look like the trollers now. This was eminently predictable I'm more amazed people are so surprised about this hairbrain scheme. They will bankrupt the country to keep hpi going.

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12 hours ago, Hullabaloo82 said:

The trouble with these schemes is they never seem to represent a real discount. 

If it were the case that key workers could just select any house thry wanted and apply for a 30% grant as part of their financing arrangements so be it but I don't doubt it'll be new developers building expensive houses which are over priced by roughly the amount if the government grant (much like the early help to buy schemes). Then it just becomes a transfer from government to the builders and the key workers are still left with enormous mortgages. 

Might be being overly cynical, mind. 

Being cynical is a rational and valid response to the UKGovs policies and approach to housing.

With respect to the extract above in bold- I would say we definitely do not want key workers or FTBs or anyone being able to apply for grants for any house including second hand stock.  This would dramatically inflate prices across the board as vendors price in the "grant" and all prospective bidders have to compete in the bidding with those in receipt of this largesse.  We need these schemes to be for new build only, even if still a grotesque distortion of the market and an appalling and shameless bung to the developers. 

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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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