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Government To Help Ftb'ers


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Ready for the spring bounce?.

Gov ready to help first time buyers with stamp duty which is making house prices so unaffordable, in addition I think we can take it now as a given that the independent bank of England will lower the interest rates prior to the election.

Stamp duty will be slashed to help first-time buyers get a foot on the housing ladder under plans being drawn up by the government.

The move comes as John Prescott, the deputy Prime Minister, prepares to unveil a five-year plan designed to allow more young people to buy a home while still protecting the Green Belt.

He will pledge tomorrow that any 'inappropriate development' in the fiercely protected open space will be referred directly to him rather than decided by local planners. This is intended to reassure rural campaigners who claim the government's planned wave of housebuilding will lead to the concreting over of the countryside.

However plans being discussed between Prescott and Chancellor Gordon Brown would go much further, with a shake-up of stamp duty to be unveiled before the election. No final decision has been made, but the government is considering raising the £60,000 threshold at which the duty kicks in - saving first- time buyers an average £1,300 on the purchase price.

The plight of first-time buyers has become a leading issue in the forthcoming general election campaign, with Tony Blair yesterday promising to tackle it. 'We know that particularly young couples and first-time buyers find it hard to get their feet on the housing ladder and we have to help them do so,' he told Labour activists in London.

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More good news for FTB'ers its getting better each day.

FIRST-TIME buyers are to be offered cheap homes built on public land and lower mortgages to invest a stake in new houses under government plans to address the shortage of affordable homes.

Housing association tenants are also to be allowed to buy their homes at discounted rates for the first time, in an emulation of Margaret Thatcher’s right-to-buy policy for council tenants.

Despite recent falls in house prices, ministers are keen to extend property ownership to more people on lower and middle incomes in the belief that capital assets are the key to social mobility.

The proposals, to be unveiled next week as John Prescott publishes the five-year plan of his Office of the Deputy Prime Minister, would offer starter homes for as little as £50,000 or £60,000.

Around 60,000 such homes could be built by private developers or housing associations on land owned by the government, particularly in property hot-spots in London and the South East. Purchasers would thus buy the house but not the freehold of the site, cutting the cost significantly.

First-time buyers are also to be offered the chance to buy a stake in another 100,000 new homes, making their mortgage costs much cheaper, in share equity schemes with housing associations or other organisations. Buyers would keep an equivalent share of any profit if subsequently they moved and sold at a higher price, taking a capital asset with them. These would be aimed at a new generation of people who are “cash- rich, asset-poor†and might otherwise apply for social housing.

The plan is in response to pressure from Labour MPs and a review of future housing need carried out by Kate Barker, the economist, published with the Budget last year. This said that between 70,000 and 120,000 more homes should be built each year to curb house-price inflation, plus 17,000 to 23,000 extra social housing units.

The Times understands that despite initial objections that have delayed publication of the plans, Mr Prescott has agreed to match the Conservative policy of extending a right to buy their homes with a discount to housing association tenants.

This would put them on a level field with council-house tenants. Although more than 700,000 housing association tenants would be eligible, ministers expect only 20,000 to 30,000 to take up the offer.

Alan Milburn, Labour’s election co-ordinator and a champion of the move, is thought to have won a battle with the Treasury to allow housing associations to borrow “off the balance sheet†from the private sector to plug the gap between the cost of selling properties at discounted prices and building replacement homes.

This is politically significant, as the issues at stake are similar to those over the creation of foundation hospitals when Gordon Brown, the Chancellor, diluted the borrowing powers sought by Mr Milburn, who was then Health Secretary.

First-time home-buyers and aspirational social housing tenants are the type of “hard-working families†at whom many of Labour’s election messages are being targeted in a campaign that will span crime, anti-social behaviour and housing and underpin Labour’s offer for a third term in office.

Putting assets within reach of people of moderate means — through home ownership or the child trust fund launched last week by Mr Brown — is the key to this wider offer which Ministers want to put to the electorate.

David Miliband, the Blairite minister drafted in last month to help to plan Labour’s re-election strategy, said that giving people more choices in their local environment, policing and housing amounted to “the politics of empowermentâ€.

In a speech to the Local Government Network Conference, Mr Miliband suggested that the empowerment of citizens was a bridge between Labour’s twin themes of local and international security and individual opportunity.

“Power is political, economic, social and cultural. It depends above all on the choices people have about their daily lives and the voice they have in the governance of local and national affairs,†he said. “Empowerment concerns the ability of people — all the people — to make decisions about the shape and course of their own lives.â€

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Changing the legislation and tax regime to discourage BTL or make it unviable would be a greater help to potential FTBs...............but would have to be phased in.......I'm fully aware though that many New Lab politicians are at the BTL trough...

In 1948 with the post-war housing crisis the government brought in rent controls and security of tenure for renters.......hence the sitting tenant paying a peppercorn rent situation......

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More good news for FTB'ers its getting better each day.

FIRST-TIME buyers are to be offered cheap homes built on public land and lower mortgages to invest a stake in new houses under government plans to address the shortage of affordable homes.

Housing association tenants are also to be allowed to buy their homes at discounted rates for the first time, in an emulation of Margaret Thatcher’s right-to-buy policy for council tenants.

Despite recent falls in house prices, ministers are keen to extend property ownership to more people on lower and middle incomes in the belief that capital assets are the key to social mobility.

The proposals, to be unveiled next week as John Prescott publishes the five-year plan of his Office of the Deputy Prime Minister, would offer starter homes for as little as £50,000 or £60,000.

Around 60,000 such homes could be built by private developers or housing associations on land owned by the government, particularly in property hot-spots in London and the South East. Purchasers would thus buy the house but not the freehold of the site, cutting the cost significantly.

First-time buyers are also to be offered the chance to buy a stake in another 100,000 new homes, making their mortgage costs much cheaper, in share equity schemes with housing associations or other organisations. Buyers would keep an equivalent share of any profit if subsequently they moved and sold at a higher price, taking a capital asset with them. These would be aimed at a new generation of people who are “cash- rich, asset-poor†and might otherwise apply for social housing.

The plan is in response to pressure from Labour MPs and a review of future housing need carried out by Kate Barker, the economist, published with the Budget last year. This said that between 70,000 and 120,000 more homes should be built each year to curb house-price inflation, plus 17,000 to 23,000 extra social housing units.

The Times understands that despite initial objections that have delayed publication of the plans, Mr Prescott has agreed to match the Conservative policy of extending a right to buy their homes with a discount to housing association tenants.

This would put them on a level field with council-house tenants. Although more than 700,000 housing association tenants would be eligible, ministers expect only 20,000 to 30,000 to take up the offer.

Alan Milburn, Labour’s election co-ordinator and a champion of the move, is thought to have won a battle with the Treasury to allow housing associations to borrow “off the balance sheet†from the private sector to plug the gap between the cost of selling properties at discounted prices and building replacement homes.

This is politically significant, as the issues at stake are similar to those over the creation of foundation hospitals when Gordon Brown, the Chancellor, diluted the borrowing powers sought by Mr Milburn, who was then Health Secretary.

First-time home-buyers and aspirational social housing tenants are the type of “hard-working families†at whom many of Labour’s election messages are being targeted in a campaign that will span crime, anti-social behaviour and housing and underpin Labour’s offer for a third term in office.

Putting assets within reach of people of moderate means — through home ownership or the child trust fund launched last week by Mr Brown — is the key to this wider offer which Ministers want to put to the electorate.

David Miliband, the Blairite minister drafted in last month to help to plan Labour’s re-election strategy, said that giving people more choices in their local environment, policing and housing amounted to “the politics of empowermentâ€.

In a speech to the Local Government Network Conference, Mr Miliband suggested that the empowerment of citizens was a bridge between Labour’s twin themes of local and international security and individual opportunity.

“Power is political, economic, social and cultural. It depends above all on the choices people have about their daily lives and the voice they have in the governance of local and national affairs,†he said. “Empowerment concerns the ability of people — all the people — to make decisions about the shape and course of their own lives.â€

most of this stuff is just pie in the sky at the moment.......ie they're vague suggestions that haven't been looked into properly

...for example extending the right to buy to HA tenants may harm Housing Associations' cashflow....

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I can't see how on earth one or two grand saved on stamp duty could possibly make the slightest difference when most houses are not one, or two but anywhere between 30 and 80 grand too expensive for First Time Buyers.

It's a bit like pushing someone off a 200 foot ledge to their death, but then offering to reduce the ledge to "only" 180 feet to give a better chance of survival.

It's ludicrous.

VacantPossession

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Pre election spin and bribes.

I doubt they would be in a hurry to implement if they get re elected,they havent been bothered much during their current term to allow this situation to get well out of hand,and if it were possible to buy new affordable property I cant see it helping a spring bounce in house prices generaly.

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But stamp duty's b'all in the grand scheme of buying your first house. If we didn't have to pay stamp duty, it would make hardly any difference one way or the other.

The real problem is NuLabour's failure to curb BTL freeloading, tax-doging landlords, second home countryside destroying bastards, which has meant typical FTB target homes are 50-60k higher than the long-term trend.

Alan Milburn, Labour’s election co-ordinator....

This bloke is Blair on steroids and a supposed 'future leader'. God help us all.

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Stamp duty is not making houses unaffordable , stamp duty is the final insult. When Tony Blair says he will help first time buyers he is basically spinning the inevitable crash into a positive for the labour party in the coming elections. Hence the headlines yesterday.

Get it?

Probably not.

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I know I'm right on this one. If anyone knows anything about losing a heap of money on a bad BTL these days it's the one and only Tricky Tony. If you have personally lost out economically the best thing you can do is a salvage operation. So Blair is professionally and politically seeking to gain from the crash himself. Brown will not reduce stamp duty, he can barely make ends meets and will break his golden rule soon. Don't pay any mind to the nonsense this thread contains at the begining from the starter, he can't see past his own desires and feels the need to reinforce his own beliefs (and hopefully convince someone else too) on a house price crash website in the middle of the night. How desperate can you get?

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Arguably, increasing stamp duty might in the long run help FTB's by reducing speculation, making BTL less attractive etc. In Europe I think many countries have VAT on house purchases of 5% or more. With notary costs etc it typically costs 10% or more to buy a place in many countries (France, Spain, Holland, Germany etc).

Although property prices have risen in many European countries over the past few years (Germany being an obvious exception) it seems that the UK has the wildest boom/bust cycle. Increasing the costs of moving would help damp this down. It might not be a popular move to increase stamp duty but it could help. If the government was to be kind it might then use the extra revenue raised this way to benefit homeowners in other ways.

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Truly frightening how some pople think, kill stamp duty for ftb's, save 1k but pay an extra 30-40k for it or drop ir's and encourage higher borrowing.

Do politicians live in the real world?

Don't bother replying, i already know the answer.

Love to see the anti christ (tony blair) kicked out of no 10 and having to buy a 2 bed terrace s**tbox that you couldn't house a dog in located in the middle of immigrant street for 7x his annual salary.

T*SSER!

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1997 Browns budget speech

Mr Brown said: "I will not allow house prices to get out of control and put at risk the sustainability of the future." He said he was determined that the UK should not return to the "instability, speculation and negative equity" of the 1980s and 1990s.

http://www.bbc.co.uk/politics97/budget97/live/housing.shtml

Believe anything these lying career politicians say at your own peril.

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I doubt this is going to help the first time buyers. It is not the stamp duty that is the problem. Most cannot cough out the deposit. Many have to take 7 ro 8 times their salary to get in to the ladder itself. Is Mr Brown addressing this problem? Until then, the FTB will be in difficulties.

They have similar government grants for FTB in Australia (Check the URL below). But do you think it is all green and rosey for the FTB in Oz?

http://www.abelrealty.com.au/news/FHOG6.htm

http://www.national.com.au/Personal_Finance/0,,8993,00.html

http://www.theage.com.au/articles/2003/08/...l?oneclick=true

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More good news for FTB'ers its getting better each day.

FIRST-TIME buyers are to be offered cheap homes built on public land and lower mortgages to invest a stake in new houses under government plans to address the shortage of affordable homes.

Housing association tenants are also to be allowed to buy their homes at discounted rates for the first time, in an emulation of Margaret Thatcher’s right-to-buy policy for council tenants....

The proposals, to be unveiled next week as John Prescott publishes the five-year plan of his Office of the Deputy Prime Minister, would offer starter homes for as little as £50,000 or £60,000....

First-time buyers are also to be offered the chance to buy a stake in another 100,000 new homes, making their mortgage costs much cheaper, in share equity schemes with housing associations or other organisations. Buyers would keep an equivalent share of any profit if subsequently they moved and sold at a higher price, taking a capital asset with them. These would be aimed at a new generation of people who are “cash- rich, asset-poor†and might otherwise apply for social housing.

The plan is in response to pressure from Labour MPs and a review of future housing need carried out by Kate Barker, the economist, published with the Budget last year. This said that between 70,000 and 120,000 more homes should be built each year to curb house-price inflation, plus 17,000 to 23,000 extra social housing units.

ROFLMAO. More cheap homes coming onto the market is going to accelerate the crash and definately is not going to prop up the bubble. All those people who can buy a cheap home don't need to buy any of the outrageous homes.

Got to love it when a bull can't even find a Bullish story anymore so tries to fob off a bearish one.

What a plonker.

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My God, just how warped and twisted is this government. If it really wanted to help it could try not letting house prices get overinflated in the first place.

And then to claim credit for "low inflation" when a basic human necessities is at a price so high that even the richest young people can't afford to buy is just outrageous.

Houses are for living in, not for investment. Unfortunately by the time the bubble bursts the investors will have got out it will be the FTBs who have to carry the can. They've just created misery in the future for thousands of people paying huge mortgages for an asset truely worth a fraction of the price.

Someone kick these jokers out.

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  • 441 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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