Saturday, February 28, 2015
Another prop just in time for the election
20% off for FTB
The show must go on. Well for a while anyway.
Posted by chrisch @ 10:50 AM (6970 views)
18 thoughts on “Another prop just in time for the election”
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Hax says:
“The “starter homes†will be cheaper for buyers because the Government is exempting them from fees charged by councils of up to £45,000 per home.” -£45,000 to build a new home? How long has this been in operation for. Hardly surprising that so few new homes are being built,
Dharmin says:
Does this indicate something fishy… why would a builder offer 20% less when they are here to take adv. of the housing market with max. profit.
Dharmin
hpwatcher says:
Obvious election bribe. It’s an attention grabbing headline but it will be interesting to see the numbers. The criteria seems rather narrow, in that the homes are brownfield only, and haven’t even been built. Moreover, it’s the city-type brownfield sites which tend to go for the most money, so even with 20% off, the price could still be well too high for most first time buyers.
This sort of thing is usually forgotten about once the election is over; given the massive scale of the cuts ahead, first time buyers will be the least of the new governments problems.
khards says:
As hpw says. The homes don’t exist and won’t be built, if the government really wanted to get these home built then they would have commissioned them to be built.
Watch what they do, not what they say.
enuii says:
@1, I have a feeling that it will be middle management / lower middle class (if such a term is still valid) occupations that will be hit hardest over the next 5 years. It is this group that are typically the most highly leveraged with mortgage and other debt. Years ago my mother used to refer to such people displaying a false front of grandeur as ‘all fur and no knickers’, nowadays they would be more accurately termed ‘all credit and no pension’.
khards says:
Only 3 from 8 lower middle management where I work own their own home, the rest rent.
libertas says:
It is a defacto cancellation of the Community Infrastructure Levy.
khards says:
Also admission that the Community Infrastructure Levy reduces supply.
happy mondays says:
Keep throwing everything at it, for votes & to keep the dream alive.. A sham.
pete green says:
surely if you take away the community infrastructure levy the land price will rise to absorb the 20% difference so the buyer is no better off as they get 20% off a greater amount. The Community Support Levy must just decrease land prices and not affect supply unless landowners think they can get a greater price in the future. I am sure this will not be exact as we are dealing with only part of the market and the complexity of how that 20% is calculated. Again until we make land cheaper it will not make housing more affordable. The main factors involved in this are available finance (and people’s ability to borrow) and available housing supply. Also reducing the Community support levy will push up the cost of social housing and Housing Benefit spending.
hpwatcher says:
The 20% *give-away* are the fees paid by the house builder to the local council. UK government are just fiddling around, there is no real commitment behind it.
Plans for housing under this scheme will obviously lose out to those under the usual schemes, as there is no incentive to give these homes planning permission.
It’s a typical pre-election announcement; sounds great but is effectively a dead duck. It’s all about grabbing headlines.
Michael says:
Let the market run itself property is over valued it does not need any more help
mark says:
lets start building on our empty fields instead of the farmers taking subsidies for watching the grass grow
mombers says:
Where exactly will the 45k come from? Taxpayers, many of whom are under 40. Screwing everyone over to buy a few votes
Rob Mk says:
Ahhhh absolute bankers……a few years ago before the props went in average Nationwide 1st time buyer was 42…..well they just screwed me then, only had 2 weeks out of work and not paying tax in my life and they give me no hope………lynch the lot of them, free market my asssss. Going to start being dishonest and cheat seems to be the rules of this society. Now wheres me gun…..got an appointment with an MP.
libertas says:
The cash is paid for by developers via Community Infrastructure Levy.
Central Government then pass that on to the first time buyer, recognising that housing is infrastructure.
pete green says:
Libertas would you agree the net effect will be the taxpayer now funds this with higher costs for social housing through increases in Housing Benefit than otherwise would have been?
hpwatcher says:
I don’t know why anyone would get excited about this, there certainly won’t be conservative government after the election. It will most likely be a two or three part coalition.
The cash is paid for by developers via Community Infrastructure Levy.
It will be a loss for local councils, who will be more interested in granting planning permission for projects that will benefit the local communities at large, rather than a few individuals.