Saturday, May 3, 2014
Government set to milk FTBs at the bottom end of a rising market!
George OsborneÃ¢Â€Â™s Help to Buy scheme is poised to generate Ã‚Â£4.5bn in profit for the government, making the Treasury one of the biggest beneficiaries of a housing boom. Research by the Financial Times shows that the government is on track to make a 59 per cent rate of return in nominal terms over its lifetime. The equity loans are interest-free for the first five years and Financial Times modelling assumes that all buyers sell their homes at the end of this period, when the government reaps the uplift in its stake of the property. FT article is better but you need to be a subscriber or enter via a backdoor.