Wednesday, March 16, 2011

Roll up, roll up tax payers money available

First-time buyers offered £70,000 deposits by local councils

First-time buyers are being offered deposits of up to £70,000 by their local council to help them on the property ladder, with taxpayers footing the bill if house prices fall.

Posted by f1dweeb @ 08:01 AM (1553 views)
Please complete the required fields.



11 thoughts on “Roll up, roll up tax payers money available

  • why should we as taxpayers fund any losses like this?

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Mark, the whole UK economic system is geared up to using taxpayer’s money to push up house prices and subsidise banks, whether directly or indirectly. This scheme is just a particularly extreme version of it.

    Reply
    Please complete the required fields.



  • I did a quick skim of the comments on the Telegraph. There does not appear to be any approving responses. What was going through the minds of the people who came up with this idea?

    Reply
    Please complete the required fields.



  • MW

    Maybe so, however i would like my local council to consult with the public first rather than just stampeding ahead with idiotic schemes

    Reply
    Please complete the required fields.



  • We're All In This Together says:

    Top down government?

    Blackpool Conservative
    Warrington Liberal
    Northumberland Liberal
    Newcastle under Lyme Con/Lib
    East Lothian SNP/Liberal

    Reply
    Please complete the required fields.



  • Uttterly idiotic as the comments below the article note, agree that the councils should consult with the public first.
    I heard about another dubious council scheme on the central news this week-spending 134k to install solar panels which a local concillor explained would save money in the long term because of the government’s massive subsidy of solar power. Errm, it’s one thing for private citizens to do this but for a council it doesn’t seem quite in the spirit of trying to achieve government savings.

    Reply
    Please complete the required fields.



  • We're All In This Together says:

    All these councils are coalition controlled, so we know where the idea came from. Interesting that Lloyds Bank is onside too. How are they going to persuade the less sympathetic, more cash strapped councils to buy into this hugely risky (of other people’s money) venture?

    Reply
    Please complete the required fields.



  • MW @2

    How much longer do you think house prices need to be propped up to keep the banks solvent ?

    Reply
    Please complete the required fields.



  • “Wer’e all in it together.”

    People need to find a way to preserve their taxes from being squandered.

    Some here have found a way, but get jealously condemned for it. 😉

    Reply
    Please complete the required fields.



  • 2. mark wadsworth

    The velvet glove is slipping as the bulls get ever more desperate.

    This really is like watching the paint dry on a very juicy Cadillac Deville before it tumbles down the rock face.

    People need to make sure that they are not locked in the luxurious boot space when that happens.

    I’m out!

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    @ Simon 8, that’s the funny thing.

    UK banks as a whole would not be too terribly affected if house prices fell ten, twenty or even thirty per cent, that’s just the way the numbers work.

    Even if house prices fell 50% and everybody in nequity defaulted and declared themselves bankrupt (all highly unlikely scenarios!), total losses would be about a fifth of gross assets, which is still within the level where the losses could be covered by debt-for-equity swaps. Depositors wouldn’t lose a penny and there’d be no need for taxpayer funded bailouts.

    The same would have applied to NR back in 2007, I looked at their balance sheet then and came to the same conclusion.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>