Housing Market revival plans

[Andyhsufc]

http://news.bbc.co.uk/1/hi/uk_politics/7592852.stm

What do people think?

Main Points -

* Interest free loans for five years at up to 30% of house value
* Stamp duty axed for houses up to £175k
* Selling part of your house to a social landlord (council etc)

 

[steveo]

Interest free loans for five years at upto 30% of house value

Will be great at first, but if this is to attract first time buyers, after 5 years or so they will probably be looking to start a family, just as they have to start paying back this loan, with interest. If the government wanted to do anything they should have suspended stamp duty a long while ago, but they would have lost too much money.

These quick fixes are exactly that and long term probably won’t be very helpful. Leave things as they are and they will sort themselves out, its just going to be hard going for a few years.

 

[Hotman]

the 30% loan will exacerbate the difference between new builds and older properties, and in all honesty will just maintain the current overpricing. I wonder how much Barratts and Wimpey have given Labour to do this...?

 

[dloman]

One simple question " Where is all this money going to come from?"

And strangely enough they haven't explained or worked that out yet.

 

[Hotman]

Loans will be guaranteed (and collectable by) the housebuilders - the government are merely legitimising it and providing a formal structure for the agreement.

Stamp duty - no loss to the government if it makes someone move who wouldn't have before.

I'm more concerned about th council buyback / rent of homes - their taking some of my investment opportunity away!!!

 

[Southminster_Shrimper]

The tax payer will foot a lot of the bill or it will be recovered in other ways....so nobody will win here.

What happens in the meantime?

Now this has been mentioned again people will wait until its available and in the meantime the housing market will disappear up Gordon Browns fat ar5e which is where it was going anyway.