Tuesday, September 2, 2008

Where’s the money coming from???????

Brown to Pledge 1 Billion Pounds to Spur U.K. Housing Market

"The program would offer help to thousands of first-time buyers earning less than 60,000 pounds a year for up to a third of the value of a newly built property, the people said." ....well that's just about everyone then.

Posted by bystander @ 07:18 AM (1974 views)
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30 thoughts on “Where’s the money coming from???????

  • ‘Where’s the money coming from ?’

    Hazel Blears was asked that very question this morning on Breakfast tv and she stated it was not new money but bringing forward monies in the pipeline for housing due in the next 3 years.

    She also said that money ‘loaned’ to keep people in their homes would have to be paid back – though this was dragged out of her as obviously the tactic is to show they are caring, the Tories are not.

    When asked why anyone should buy in a falling market she replied that many decent young couples are desperate to get on the housing ladder and we are on their side..

    All I can say is if this is the big housing kickstart that Greenbay and co promised they must be gutted this morning – classic New Labour warm words, big headline, no new money, no substance.

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  • so lend people who cannot afford it more money whilst first time buyers still cannot get on the normal ladder

    p.s. lost some money on the stockmarket any chance of my money back

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  • Wonder if lenders will speed up repossession actons now to ensure they get their money from the government? How will negative equity situations be dealt with, where the lender is owed more than the house is worth? Will they be given the full amount?
    All this bad debt being transferred onto the taxpayers’ balance sheet, a lot of which may be MEW’d credit card debt. Now banks can start lax lending again ‘cos it’s unerwritten by us?
    My gut feeling is that, just like the much heralded shared equity schemes, hardly anyone qualifies and it helps virtually no-one.

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  • Disgusting…my tax dollars to support builders, and to suck more into negative equity and penury. Absolutely disgusting.

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  • Brown wants to save his a..e and anything that helps will be done, no matter how irresponsible it is.

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  • huge exercise in wealth transfer – consequences?

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  • Problem is that politicians forget that they are there to represent the people’s view and not to dictate to the people. Most viewers’ comments were against goverment intervention, but Hazel and Gordon know best !.

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  • Its becoming more like a DFS sale.

    Gordon Brown and you choose how you want to pay. Beg to use your parents pension or spread the cost over 1, 2, 3 or 4 years interest free with no deposit from the goverment. You can even put your feet up and pay nothing for the first year !!

    Good heavens, what sort of a shambles is this country in ?

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  • I bet if you were a cash buyer you could negotiate off a much bigger discount. So therefore the interest free loan is subsidized by an over inflated asking price. We’ve seen it all before down at the used car forecourt.

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  • Say NO to housing market bailout at taxpayer expense anyway, anyone like to set up a petition? Patrick.net did one for the US market.

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  • Well he has finally lost the plot. Even Darling is trying to distance himself from this disaster that is about to unfurl. The claims that this is to “help” FTB’s is ridiculous, as not one bank is going to provide the rest of the cash to the FTB’s in the market. Look at the evidence, if the government is going to have to lend 30%, thats 30% straight off the valuation. Then those lovely banks will sit down and realise that of the money they are going to give to the FTB they will have to secure/insure it somewhere, which increases the cost of the loan given to the FTB, particularly if they couldn’t raise the deposit in the first place.

    This is a waste of my tax. If I choose not to buy a house why should I subsidise foolishness on the part of others?

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  • If you do the sums on £1 Billion, taking the average mortgage at £150k only around 70000 households will benefit, less than half the population of Reading.

    This will only send the £ lower and inflation higher and in turn interest rates higher and more repossessions then more Government aid, then a lower £ then higher inflation , higher interest rates ..get the picture ?

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  • Okay, let me get this right.. you come out of Uni.. approximate joint debt with student loans (couple) £40k, encouraged to take a 5 year ‘free’ loan £60k to get a home. So, to any young or middle aged individual, if you want proof of the fact that our generation are going to pay for the mistakes of the older generations, this is it. My advice is to plan to leave the UK.

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  • japanese uncle says:

    Can anyone in his right mind possibly think one billion pounds is nearly enough to make any difference to the problem of this size?

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  • Still-waiting says:

    This is no different to the schemes that have been running for years. And there’s no new money. Basically they have just announced that nothing will change.

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  • J.U. is right, a billion pounds is a drop in the ocean when compared to the size of the housing market. Looking at the detail only 300 million of the billion total is allocated for FTB “loans” so really its not going to make a heap of difference though that is not to say it isn’t morally reprehensible but hey what do you expect from this Government and its OCD-suffering nail biting chief?

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  • I’m speechless. Massive transferral of wealth from the taxpayer to the recklessly overstretched private housebuilding sector. Where’s the oversight? Who is making sure that Brown isn’t just printing money to keep himself in power?

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  • There’s a ready-made petition for an immediate election on the No.10 website, not set up specifically because of this but who cares? I know the alternatives are not necessarily going to be any better but if we don’t throw the Government out of office then they’ll just assume that they’re doing a good job. Send them a message! http://petitions.number10.gov.uk/GoToCountryNow/

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  • mountain goat says:

    FTB’s don’t touch this with a barge pole it’s a trap.

    The only government intervention I support is for the government to buy up unfinished building projects, abandoned by builders who know they can’t sell them on in this recession. Keeping construction of new housing going is worth my tax money. No one benefits from builders all going bankrupt.

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  • honest valuer says:

    Sterling drops a cent to $1.79. Wait until GB’s printing press really gets going and we will be looking at $1.50 if we’re lucky.

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  • @mountain goat said…

    FTB’s don’t touch this with a barge pole it’s a trap.

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  • With the aggregate value of UK housing falling by around £2.5 billion every day, how can anyone seriously pretend that bringing forward £1 billion of social housing spending will make any significant difference?

    Pure gesture politics!

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  • Unless I have misunderstood, the 30% loan is to help buy new-build houses only. If so this is a way of trapping FTB into buying over priced houses and directing a big slice of tax payer’s money into the big house builders. This country is nuts! The big house-builder cartel has been one of the prime price pushers, they have been giving fraudulent data to the Land Registry for years to make houses appear more valuable then they were. They ought to be looking at a prison sentence not a handout from people like us. Why should I, a non-home owner who has been careful to live within his means and provide for my kids and my own retirement have to subsidise the big house builders. It’s a crime.

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  • So this will create a demand for new homes that aren’t really needed and our lovely greenbelt land will be dug up for no reason at all.
    There is some lovely rolling downland near where I live that has been “earmarked” despite massive popular opposition. I thought it
    would be safe for a while. Once its gone its gone forever.

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  • All state borrowing by auctioning Gilts is “bringing forward” money from future taxpayers.

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  • This is no surprise.
    Orchestrated boom. Orchestrated bust.
    One step closer to the end of money in 2011.

    Just keep joining the dots guys, and don’t let the enormity of the truth stop you from seeing the reality
    Fifth night destruction still has 2 months to run

    Anyone for a consciousness change yet?
    No. Ok more destruction please.

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  • Gordon

    The destruction of the UK economy will bring about your vision of a more equal society – we will all be equally destitute.

    You’ve sold us out – now get out.

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  • 13. Stevie Dee said…
    My advice is to plan to leave the UK.

    That was my plan – to move to France – before they screwed the exchange rate to the point that it’s no longer possible.

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  • @29.. My plan was to go to Geneva.. before I got screwed by a couple of dodgy BTL Landlords. Thankfully, I have an accountant (vetted – non BTL) who is coming in on my project, as he recognises an “appreciating asset” despite the imminent economic downturn. I’m very fortunate that my concerns over house prices 3 years ago and then finding this website, has provided me with my freedom (sold September 07) and with still being young helps me appreciate that I am or will be more fortunate than others despite the problems I have encountered with unscrupulous landlords.

    I thought GB, would deliver a master stroke, by catching the market down (40%-60%), and rehabilitate our house price addicted nation, setting a new cultural change and a future for the younger generations. No, he hasn’t, this is serfdom through the back door, and it is clearly apparent that the masters are “The City”, and the implications from the impending maelstrom will be the relegation of a once proud and eminent country.

    In truth, I don’t believe any political party would have behaved differently. Why? Because we would have seen a more vigorous response or disquiet to the way the economy was moving. I want to say that I could be wrong, and if so, I will be happy to be wrong.

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