Tuesday, May 7, 2013

Its a good news day.

House prices to soar by 30%: Experts predict average value will hit £300,000

HOUSE prices are set to rocket thanks to a surge in new buyers helped on the property ladder by the Government, a report claims. Experts predict a 30 per cent rise over the next two years as home-hunters take advantage of the Help To Buy scheme. It would send the price of an average home to £300,000 by the end of 2015 – a huge leap from the current figure of £233,000. The scheme, announced in the March Budget, is designed to help people who ­cannot afford the large down payments ­demanded by commercial lenders to invest in property. Buyers will only need a five per cent deposit. Industry expert Dominik Lipnicki said the move was “very much good news”. He added: “There is no doubt this will help to push up house prices.

Posted by khards @ 07:53 AM (4323 views)
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16 thoughts on “Its a good news day.

  • If this is good news, and the government is able to manipulate house prices as it pleases, why stop at a mere 30% price increase?

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  • mark wadsworth says:

    That Express article is more or less the perfect satire.

    The only sensible quote they didn’t take completely out of context and twist round was JD saying “Yeah, but they are going to have to another even bigger and madder scheme in three years to keep the bubble going.”

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  • In other news it was revealed that wildlife teams off the coasts of Australia and the US will be capturing sharks, filing their teeth to make them more deadly and re-releasing them close to shore.

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  • sibley's b'stard child says:

    Apportioning the word ‘surge’ to any of the hare-brained ‘Help to Buy’ (sic) schemes is rather optimistic.

    ‘Millions of families were able to apply for Help To Buy from the start of last month…’

    And how many will actually get on the scheme? By guess is somewhere between 80-140 people.

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  • heseltine in the 90s came out with some hairbrain scheme

    total take up

    11

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  • Lots of hopium flowing around the UK these days.

    Since everything the government does ends in a u-turn or total failure I don’t see why this scheme will end any different, infact it could have the complete opposite effect.

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  • mark wadsworth says:

    Sibs, that was my first thought as well.

    From The Daily Mail, 27 November 2009

    HOMEBUY DIRECT: An equity loan – funded by government and the scheme developers – of up to 30 per cent of the market value is available to buy a new-build property. You will have to raise the remaining finance from a mortgage and any savings.

    There will be no fee charged for the loan for the first five years. The equity loan must be repaid when the property is sold (the amount reflects the selling price of the property) or, if you prefer, the loan can be redeemed earlier in instalments.

    NEW-BUILD HOMEBUY: You can buy a share of a property (25 per cent, 50 per cent or 75 per cent, depending on your financial circumstances) with the rest bought by a housing association.

    You get a mortgage for your share and pay rent on the rest. If your finances improve, you can alter the balance and boost your 25 per cent share to 50 per cent, for example.

    RENT TO HOMEBUY: This permits you to rent a home for up to five years, often at a discounted cost, and then buy it when, or before, that period ends.

    If you choose not to buy, you can move elsewhere or continue to rent that home. A guide to these initiatives is available on direct.gov.uk (press the Home and Community link).

    ‘There’s never been a better time for first time-buyers to get on ladder,’ says Sue Warwick, of Miller Homes. ‘Prices are significantly lower and there’s help out there in the form of shared equity deals. These mean that homes are more affordable for first-time buyers than they have been in a long time.’

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  • “If your finances improve, you can alter the balance and boost your 25 per cent share to 50 per cent, for example. ”

    Fat chance of that happening in the next Decade.

    “RENT TO HOMEBUY: This permits you to rent a home for up to five years, often at a discounted cost, and then buy it when, or before, that period ends.”
    “The Rent to Buy scheme has very limited availability.” – Zero?

    Sounds too good to be true? Rent a new property on an assured lease for 5 years – no strings attached?

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  • Dominic Lipnicki the “Industry Expert” actually owns a mortgage business, so not a vested interest at all. His mobile number is on his company’s website if anyone wants to share their views with him!

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  • Hahahahaha. More overleveraged subprime borrowers is exactly what the economy needs right now. What could possibly go wrong?

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  • You really start to wonder if there ought to be some sort of censorship of the press when you see irresponsible reporting like this.

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  • I just don’t like this paper.

    The comments give an indication that others feel the same.

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  • peter_2008 says:

    Every sentence in that article sounds insane.

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  • it will all end in tears……the teaser rates can’t last forever – can they?

    😉

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  • montesquieu says:

    Come on people it’s the Daily Express. Not worth the paper it’s printed on.

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  • Experts?

    Just work out the value of a property from rental pcm and a 6% yield. In Hackney Wick buyers have bought property that investors would value at 250k by as much as 325k. One canal side flat is on its fifth buyer after either sales fell through or theres been some serious panic selling. Originally bought for 350k its now been bought at 310k. All happening off market. Its a joke.

    According to some Morgan Stanley research UK financials have to refinance some large amounts of debt 2014/2015 and private equity is a worry. At some point after the price of gold has been devalued enough it will probably be used as a haven again.

    We need some credible investigative journalism carried out particularly on off market trades. London house price crash worries are here to stay.

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