Conwy Council £1M Bond To Help First-Time Buyers

[Walton Goggins]

Conwy Council applied to the Welsh Assembly in 2009 for money to fund help for first-time buyers, it seems the plan is subject to approval by the full council and could be ready for next spring.

I don't believe any councils should be using money, whether raised through Council Tax or streamed through other government bodies to help maintain high property prices.

Maybe their heart is in the right place, but covering a defaulted mortgage payer is not a business a council should be a part of, especially at a time when cuts are being made to services and staff.

Its absolutely maddening, just let the housing market reach its natural level - whats so difficult about that ?

http://www.bbc.co.uk/news/uk-wales-north-west-wales-14893941

[South Lorne]

Conwy Council applied to the Welsh Assembly in 2009 for money to fund help for first-time buyers, it seems the plan is subject to approval by the full council and could be ready for next spring.

I don't believe any councils should be using money, whether raised through Council Tax or streamed through other government bodies to help maintain high property prices.

Maybe their heart is in the right place, but covering a defaulted mortgage payer is not a business a council should be a part of, especially at a time when cuts are being made to services and staff.

Its absolutely maddening, just let the housing market reach its natural level - whats so difficult about that ?

http://www.bbc.co.uk/news/uk-wales-north-west-wales-14893941

...spitting into the hurricane...it will come back and hit them in the face....

[needle]

...spitting into the hurricane...it will come back and hit them in the face....

And yet linked from the same BBC page and dating from Jan of this year is this gem - Conwy council looks to fill empty homes

http://www.bbc.co.uk/news/uk-wales-12158940

Around 900 properties in the Conwy area had been unoccupied for six months or more in April 2010.

Last November, Shelter Cymru called for councils to use their powers to bring 26,000 empty privately-owned homes in Wales back into use.

So, if I've got this right, they have 26k empty homes and at teh same time (from the first article) they are subsidising students to buy houses...

WTF?

[South Lorne]

And yet linked from the same BBC page and dating from Jan of this year is this gem - Conwy council looks to fill empty homes

http://www.bbc.co.uk/news/uk-wales-12158940

So, if I've got this right, they have 26k empty homes and at teh same time (from the first article) they are subsidising students to buy houses...

WTF?

...holiday homes...politics of envy...they should realise tourism is an industry ...and to cultivate it....say by additional tax for unoccupied periods....they should use the brain ....

[Si1]

And yet linked from the same BBC page and dating from Jan of this year is this gem - Conwy council looks to fill empty homes

http://www.bbc.co.uk...-wales-12158940

So, if I've got this right, they have 26k empty homes and at teh same time (from the first article) they are subsidising students to buy houses...

WTF?

http://en.wikipedia.org/wiki/Empire_building

[The Masked Tulip]

And yet linked from the same BBC page and dating from Jan of this year is this gem - Conwy council looks to fill empty homes

http://www.bbc.co.uk/news/uk-wales-12158940

So, if I've got this right, they have 26k empty homes and at teh same time (from the first article) they are subsidising students to buy houses...

WTF?

So they have 900 empty homes and there are 26,000 empty homes in Wales?

[Self Employed Youth]

It is neither helping people to buy property, nor keeping property prices high. It is the incentivisation of debt bondage.

[Walton Goggins]

It is neither helping people to buy property, nor keeping property prices high. It is the incentivisation of debt bondage.

Its all three......and no doubt plenty of other things also.....but more than anything its just....wrong.

[Walton Goggins]

A third Welsh council plans to help first time buyers, following Cardiff last week we have Ceredigion.

Would like to see terms and conditions enforced that no property owned or mortgaged by anybody connected to these councils is allowed to be sold in relation to these schemes.

Whether an ombudsman or suchlike, otherwise it is too easy that they are just thinking schemes to help unload BTL portfolios etc. Anybody watching ?

http://www.walesonline.co.uk/news/wales-news/2011/10/26/ceredigion-council-draws-up-scheme-to-help-first-time-home-buyers-get-on-property-ladder-91466-29661501/

[The Masked Tulip]

Anybody watching ?

Guest Post: Is the Welsh housing market on the verge of collapse?

http://www.gogwatch.com/2011/09/13/guest-post-is-the-welsh-housing-market-on-the-verge-of-collapse/

[Walton Goggins]

Thanks MT, I like the first comment containing the words " The trouble with the Gogwatch verdict here is that it is based on an assumed “certainty” " , only Alanis Morissette could be less ironic, or is it more ironic, I can never remember.

Never mind Gogwatch assumptions its the councils assumptions of " certainty " that concern most of all.

Councils in Wales, England and everywhere else shouldn't be allowed to spend money this way at a time of cutting jobs and services. Bizarre.

Have to wonder what Eric Pickles thinks about it all, must be more room to reduce government grants at the very least, maybe force a change of heart.

[South Lorne]

Thanks MT, I like the first comment containing the words " The trouble with the Gogwatch verdict here is that it is based on an assumed “certainty” " , only Alanis Morissette could be less ironic, or is it more ironic, I can never remember.

Never mind Gogwatch assumptions its the councils assumptions of " certainty " that concern most of all.

Councils in Wales, England and everywhere else shouldn't be allowed to spend money this way at a time of cutting jobs and services. Bizarre.

Have to wonder what Eric Pickles thinks about it all, must be more room to reduce government grants at the very least, maybe force a change of heart.

..this is abuse of tax payers money...

[Sibley's Love Child]

There's still life in this ponzi scheme yet cap'n. If the entrants are no longer willing then we'll simply extort the capital by force. F*cking bravo.

Wandsworth council are doing something similar but using the proceeds of right-to-buy to fund FTBs deposits. That's a win/win for the homeownerists; lose one unit of council stock to the private market while helping a hapless FTB onto the great debt servitude lottery.

T

[Woot]

Guest Post: Is the Welsh housing market on the verge of collapse?

http://www.gogwatch.com/2011/09/13/guest-post-is-the-welsh-housing-market-on-the-verge-of-collapse/

Love it! Thanks TMT. And some of the comments are yummy bearfood too. Bring it.

[Democorruptcy]

A third Welsh council plans to help first time buyers, following Cardiff last week we have Ceredigion.

Would like to see terms and conditions enforced that no property owned or mortgaged by anybody connected to these councils is allowed to be sold in relation to these schemes.

Whether an ombudsman or suchlike, otherwise it is too easy that they are just thinking schemes to help unload BTL portfolios etc. Anybody watching ?

http://www.walesonline.co.uk/news/wales-news/2011/10/26/ceredigion-council-draws-up-scheme-to-help-first-time-home-buyers-get-on-property-ladder-91466-29661501/

It's not just Wales. It's ultimately planned for all councils.

Fifteen local authorities team up with Lloyds TSB in a scheme to top-up first-time buyers' deposits

http://www.guardian.co.uk/money/2011/mar/16/local-councils-first-time-buyer-mortgage-support

Newnham are in negotiation with the government to get permission to borrow money to buy 7,500 houses and that isn't 'build' as someone suggested in my thread. It includes buying houses on the open market because I emailed them and that's what they told me.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=170677

Councils are getting triple AAA ratings ready to leverage up when the rules about them not being able to borrow are officially changed

http://www.housepricecrash.co.uk/forum/index.php?showtopic=170416

Coming to you soon.... being in competition with your council to buy a house and they will be using your council tax leverage up to outbid you!

[Walton Goggins]

It's ultimately planned for all councils.

Powys to decide shortly, who knew Powys would have money to punt, well done to them, when other councils are struggling to balance budgets, its great to see they can do this, not having to make cuts in services and staff, or worry about anything*.

*cough.

[Democorruptcy]

Powys to decide shortly, who knew Powys would have money to punt, well done to them, when other councils are struggling to balance budgets, its great to see they can do this, not having to make cuts in services and staff, or worry about anything*.

*cough.

If councils are now Triple AAA rated and going to be able to borrow due to the rating agencies saying they are backstopped by the government as lender of last resort, they don't have anything to worry about.

The agencies said the ratings reflected the council’s track record of managing its finances as well as the Government’s willingness to remain a lender of last resort

http://www.housepricecrash.co.uk/forum/index.php?showtopic=170416

By funding 20% deposits the banks are pushing the riskiest debt onto councils so they will need the bailouts instead of the banks.

Think of how much waste there is in councils, fat cat pay and pensions, etc . Now they are going to be able to borrow to fund that and ponzi housing schemes. It can only end in much larger council tax bills and then finally taxpayer bailouts via the government. Meanwhile the banks are laughing.

[Ash4781]

The council would put up a guarantee to cover the difference between what banks and building societies would normally lend, and what the borrower needs to buy.

....

If the buyer defaulted on the mortgage, the council would have to pay back the part of the loan it had guaranteed

Hopefully all the members' interests are declared on a register ?

I wonder if the banks and building societies just expand their margin on reduced risk and keep the lending rules the same? Cheers guys!

[SarahBell]

"I think the big problem for everyone at the moment is uncertainty, and this scheme will enable first time buyers to have confidence and also the sellers to have confidence."

If the buyer defaulted on the mortgage, the council would have to pay back the part of the loan it had guaranteed.

-----

So the council should only be lending to people who can actually afford to buy and hence don't need the scheme?

[Ash4781]

"I think the big problem for everyone at the moment is uncertainty, and this scheme will enable first time buyers to have confidence and also the sellers to have confidence."

If the buyer defaulted on the mortgage, the council would have to pay back the part of the loan it had guaranteed.

-----

So the council should only be lending to people who can actually afford to buy and hence don't need the scheme?

Not sure. If the banks pay a fee for the guarantee they I suppose they could form a team at the council and create some long processing paperwork type system? (in duplication to the banks)

[SarahBell]

Not sure. If the banks pay a fee for the guarantee they I suppose they could form a team at the council and create some long processing paperwork type system? (in duplication to the banks)

Creating another tier or delay and mismanagement AND Pension liability for the council.

[Bloo Loo]

frack it, why dontthey just give everyone the carefree mortgage they want...nobody has to worry about defaulting ever again.

[catmandu]

I wrote to my council in Scotland to ask for an assurance that they weren't planning this kind of scheme - they said they weren't at present but all options were on the table. I take some comfort in the fact that it's highly unlikely that councils have enough money to prop up the market. Gravity will win in the end.