Wednesday, December 14, 2011

Estate Agent Today talks sense: shock

Homes bought under MIG scheme 'could devalue overnight'

Properties sold to first-time buyers under the Government’s 95% mortgage indemnity guarantee scheme could instantly depreciate in value, the RICS has warned. The RICS says it is concerned that demand for homes within the scheme could artificially put up their prices. David Dalby, residential director at RICS, said valuers will need to look at properties outside the scheme and take their prices into account. He said: “There is a potential issue for lenders and buyers in that, as this scheme is only available for new-build property, any subsequent purchaser would not be able to take advantage of it. “Unless similar loans come on to the market for second-hand homes, there may be an instant depreciation in value the day after purchase.”

Posted by mark wadsworth @ 05:13 PM (3423 views)
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6 thoughts on “Estate Agent Today talks sense: shock

  • we're all in this together says:

    You think this government doesn’t know that?

    It doesn’t matter as long as the punters borrow to the hilt, the taxpayer will pick up the tab. It’s a no lose situation for the bankers and their pals.

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  • It would be better if the politicians followed a policy of ‘Don’t Just Do Something, Stand There!’ rather than [email protected] up young peoples lives with there tinkering.

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  • Blue Nose Bear says:

    “their”

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  • we're all in this together says:

    “Unless similar loans come on to the market for second-hand homes, there may be an instant depreciation in value the day after purchase.”

    Just realised how ominous this comment sounds. I’ll bet anyone a pound to a pinch of pig poo they’re softening us up for the announcement of an extension of the scheme (which will no doubt prove fantastically successful) to include Mr Dalby’s “second hand homes,” second time buyers, BTL landlords, anyone with a few quid or no quids at all.

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  • sibley's b'stard child says:

    The EAs are also concerned by this scheme as it will supress transactions further. The majority if these purchases would be chain-free FTBs ergo no new business generated.

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  • They can tinker all they like, but I honestly can’t think of a worse time to buy sub-standard housing than now.

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