Saturday, January 18, 2014

You don’t say – really???

Plea to scrap Help to Buy in London as prices become 'absurd'

I love the continued warnings that if the government aren't careful this could turn into a bubble. Now L&G are entering the Mortgage Equity Release arena, retail sales will rocket and we can all have lovely holidays and holiday homes etc. etc all helped by this NON - BUBBLE 😉😉

Posted by bystander @ 11:34 PM (5244 views)
Please complete the required fields.



7 thoughts on “You don’t say – really???

  • Although clearly there are seemingly political advantages to this by favouring one group at the expense of another, you can also see this as a deeply cynical transfer of debt from the government to the population at large. There are a lot of speculatively held London properties, people don’t live in them. When they are sold the cash does not necessarily go back into another property. The government gets not only the transaction based taxes but the bulk of the sale price for speculative profit taking will go through VAT.
    I.e. a lot of London property sales are going to end up with effective VAT levels of tax, regardless of the capital gain position. Clearly the government has no intention of removing the guarantee because I can imagine you can make a good argument that the costs of the scheme are outweighed by the increase in the tax take. All the same UK debt keeps rising.

    Reply
    Please complete the required fields.



  • “There are seemingly political advantages to this by favouring one group at the expense of another”

    That is the only thing government’s can do, which is why Marxism attempted to justify post-hoc the sole purpose of government. Of course, the alternative is private charity which is cheaper, involves volunteers in place of expensive contractors and donations in the place of forceable tax extraction. But that is at the expense of State power and politically correct nonsense that tears communities apart would not be funded, which would so upset the so called Liberals, who think it is charitable to fund things like abortions rather than reduce the tax load that makes parenting untenable, for example.

    Reply
    Please complete the required fields.



  • Guys – the limit is £600,000 so it shows who it’s intended to help. That’s nearly 4 times the national average hp.

    Wakey wakey !

    Reply
    Please complete the required fields.



  • I’m hoping for another 20% in London this year. Its got so ludicrous, that when the bubble burst it needs everyone on the same page (internationally) that it is a huge bubble and if you can get out you should. This includes all the foreigners who are buying central London concrete shells for a £750,00 a pop through to the buy to let brigade. If everyone panics at the same time, then we will have our crash and it will continue to crash until it swings through the other way and government policy will have to let the market make its own way .

    Reply
    Please complete the required fields.



  • I feel that the market is based more on money fleeing Europe than Help to Buy (&Sell).
    I wonder if the Govt is front running global capital flows rather than the other way around.

    Reply
    Please complete the required fields.



  • The UK will soon be victim to it’s own greed as economic recovery takes place (to some degree – as it is in Ireland) and interest rates begin to rise.
    The gamblers/Investors who are naturally greedy and risky will sell off investment property adding to the UKs debt and interest rate wowes. The magic money that is here will find better homes in productive assets and sterling will continue it’s slide to ZERO.

    Reply
    Please complete the required fields.



  • Love the London property bubble.

    I rent in a prosperous nappy valley neighbourhood with good access to the Northern Line. A one bed will set you back from anywhere between £300,000 and £450,000.

    NO ONE can afford these prices. I hang out with IT consultants, surveyors and city types. No one is buying, few could afford too even if they wanted. We are all aged around 30. I would like to settle but it is not possible to make any forward progress at these levels.

    When she blows it will be catastrophic for the nation and the banks. Say prices dropped 40%. What would this do to the banks. Remember London was resilient last time.

    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>