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“and government persists with a scheme that directly supports a company making £1bn profits . . . Am I cross? I’m f****** outraged”.


sancho panza

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https://www.propertyindustryeye.com/help-to-buy-purchases-running-at-rate-of-1000-sales-a-week/

Help to Buy supported an average of 1,000 sales of new-build homes a week last year, mostly to first-time buyers – while helping developer Persimmon achieve record profits.

But the NAEA said that all Help to Buy does is distort the market by sucking first-time buyers out of the system.

Persimmon yesterday announced profits of over £1bn, with nearly half of its sales made under the taxpayer-funded Help to Buy.

The firm has also announced a new chief executive, Dave Jenkinson, replacing Jeff Fairburn who stepped down after a furore over his £75m pay packet.

In new data covering Help to Buy from its inception on April 1, 2013, to the end of last September, the Government revealed that there have been 195,219 purchases, funded by taxpayer-backed loans of £10.6bn.

The value of the homes sold under the scheme totalled £49.89bn.

Most of the purchases were by first-time buyers, accounting for 81% of purchases.

Trade body the Intermediary Mortgage Lenders Association says last year was the strongest yet for Help to Buy sales. It is predicting that there will have been 200,000 sales by the end of last year.

NAEA chief executive Mark Hayward yesterday  told EYE: “We are seeing increased sales to first-time buyers running at about 26% of sales, with the slowdown in buy- tolet purchases helping the firsttime buyer to be in a more competitive position.

“Help to Buy, though, does not build chains as in effect the buyer is sucked out of the system.”

Property buyer and housing pundit Henry Pryor vented his anger on Twitter saying that 1,000 kids had woken yesterday morning in bed and breakfast accommodation “and government persists with a scheme that directly supports a company making £1bn profits . . . Am I cross? I’m f****** outraged”.

Also highly critical was Joseph Daniels, founder of modular house-building firm Project Etopia.

He said that the £10.6bn spent by taxpayers on Help to Buy was almost as much as the entire current police budget for England and Wales, at £12.3bn.

He said the scheme had created an “artificially robust market” in new-build, and that the amount of money spent on Help to Buy would have paid for over 43,000 homes at full market value.

Help to Buy’s current equity scheme, applicable only to the purchase of new-builds and not to the traditional secondhand stock held by estate agents, is due to continue until 2023, but will end for all except first-time buyers from 2021.

Yesterday, Persimmon shares climbed 48p, or just over 2%.'

 




Transactions are down

https://www.propertyindustryeye.com/going-down-transactions-sink-below-the-million-mark-across-england-and-wales/

'Annual transactions in England and Wales have plummeted, says a new report.

Across England and Wales, and excluding London, they are well below the million mark, and have been measured at 798,296 in the 12 months to the end of January.

A new report says that they are now below the levels seen in 2014 and have fallen by 1.9% over the year.

Even counting London itself, transactions in England and Wales were still under the million mark in the 12 months to the end of January: in Greater London, there was a 5.2% fall in transactions to 88,224.

In prime central London, LCP says transactions are at a historic low, with a fall of 15.6% over the last year – fewer than an average of 69 sales per week.

LCP also reports that house prices are down, now standing at an average of £259,442 excluding London.

CEO Naomi Heaton said: “Prices have now been in decline since last September. It appears that the uncertainty that has been so apparent in London for some time now has permeated to the rest of the UK.”

LCP produces its report based on every transaction recorded by the Land Registry, including cash purchases and new-build

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So will it actually be culled after ten years? What will it be replaced with? I assume something that will energise the house market some more. Buy Now Pay Later? BOGOF?

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1 minute ago, A_P said:

So will it actually be culled after ten years? What will it be replaced with? I assume something that will energise the house market some more. Buy Now Pay Later? BOGOF?

H2B^2

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I think HTB is a brilliant idea...it has `sucked in` all of those buyers that I would have been competing with in the future, and as they have paid a premium inflated by HTB, when prices `normalise` they will be financially `trapped` in their overpriced HTB properties. Not only that, they have `absorbed` a large volume of the new, poorly built properties, leaving a greater pool of the well built, traditional properties for me to choose from...a win~win situation, what's not to like?!

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10 hours ago, MrXxx said:

I think HTB is a brilliant idea...it has `sucked in` all of those buyers that I would have been competing with in the future, and as they have paid a premium inflated by HTB, when prices `normalise` they will be financially `trapped` in their overpriced HTB properties. Not only that, they have `absorbed` a large volume of the new, poorly built properties, leaving a greater pool of the well built, traditional properties for me to choose from...a win~win situation, what's not to like?!

At face value I would whole heartedly agree with you. 

Unfortunately though, the main group that will suffer the most in the forthcoming HTB fallout, will be the younger generation.

Whilst relying on maxed out borrowing to not ‘miss the boat’, they have mostly been brainwashed by a boomer ‘bricks and mortar only ever goes up’ indoctrination and by the MSM. Most will find out the hard way once the government loans are due to be paid back.

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13 minutes ago, Sideysid said:

At face value I would whole heartedly agree with you. 

Unfortunately though, the main group that will suffer the most in the forthcoming HTB fallout, will be the younger generation.

Whilst relying on maxed out borrowing to not ‘miss the boat’, they have mostly been brainwashed by a boomer ‘bricks and mortar only ever goes up’ indoctrination and by the MSM. Most will find out the hard way once the government loans are due to be paid back.

Well once they start flexing their `political muscles` (rather than focussing on the latest iPhone/TV plot) perhaps they will be taken seriously/listened to...far too passive/apathetic at the moment and that's why they get treated so badly...much like a bad lover who treats you badly as they know you will always be there!

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22 hours ago, MrXxx said:

I think HTB is a brilliant idea...it has `sucked in` all of those buyers that I would have been competing with in the future, and as they have paid a premium inflated by HTB, when prices `normalise` they will be financially `trapped` in their overpriced HTB properties. Not only that, they have `absorbed` a large volume of the new, poorly built properties, leaving a greater pool of the well built, traditional properties for me to choose from...a win~win situation, what's not to like?!

yes it gets me pissed off and pissed litteraly.the dividens this year from my handfull of tw. shares will be about 150 quid,that translates has 200 plus cans of aldis finest 5% larger.you have to look on the brightside.

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4 minutes ago, stokiescum said:

yes it gets me pissed off and pissed litteraly.the dividens this year from my handfull of tw. shares will be about 150 quid,that translates has 200 plus cans of aldis finest 5% larger.you have to look on the brightside.

Capitalist. o.O

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On 28/02/2019 at 07:24, Sideysid said:

Whilst relying on maxed out borrowing to not ‘miss the boat’, they have mostly been brainwashed by a boomer ‘bricks and mortar only ever goes up’ indoctrination and by the MSM. Most will find out the hard way once the government loans are due to be paid back.

HTB is just a continouation of 110% mortgages but government backed.. 

If Giving loans above what people can afford to borrow was the cause of the 2008 crash, Then this is just the same thing under a different name! 

Surely? 

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One percent
2 minutes ago, macca said:

HTB is just a continouation of 110% mortgages but government backed.. 

If Giving loans above what people can afford to borrow was the cause of the 2008 crash, Then this is just the same thing under a different name! 

Surely? 

What pisses me off more than anything is that their impoverishment of us all for 20 plus years was justified on the grounds of the “free market “. Now when their cronies and mates are feeling the cold winds, thoughts of the free market are abandoned. 

They will do whatever it takes to rob blind the citizens of this country. 

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Long time poster at the other place, since 2003 originally. Was shunted a few times for being too right wing apparently. 

Now have a house worth 280k with no mortgage in the MK area and looking to buy a 4 bed detached for 440k. Will need to use HTB and take the min mortage of 110k to get the HTB. Only problem is my current wage barely supports being lent 110k. I am a contractor although i will be given a 1 year contract within a month. Lady i spoke to on the phone regarding a mortgage is very hesitant to proceed to MIP application. Other half has just started Self employed so not much use on a joint application. 

Not sure how people are affording houses. Any monthly payments for me will be split two ways and i am only essentially paying off 25% off a nothing special house. Some people must have mortgages of over 2k a month on modest wages. Any interest rate rises and the whole of the uk will grind to a halt. I cannot see anything but 0.5% rates for the next 20 years. Anything else is just not workable. You cannot evict 5 million people from their houses. There will surely be a continuation of HTB, they cannot withdraw it in the future.

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On 28/02/2019 at 07:24, Sideysid said:

At face value I would whole heartedly agree with you. 

Unfortunately though, the main group that will suffer the most in the forthcoming HTB fallout, will be the younger generation.

Whilst relying on maxed out borrowing to not ‘miss the boat’, they have mostly been brainwashed by a boomer ‘bricks and mortar only ever goes up’ indoctrination and by the MSM. Most will find out the hard way once the government loans are due to be paid back.

I have always fantasised about pitching a new TV show idea to a producer , along the lines of challenging boomers to buy a starter home in 2019. Perhaps a faux documentary.

 

Barry the Boomer has to give up his savings, his fat pension and other unearned wealth to find a house in the Uxbridge area for 4x annual wages. Meanwhile, Bernice the Boomer discovers that Help 2 Buy isn't all its cracked up to be.

-

Bernard the Boomer faces a tricky dilemma: Does he buy an avocado wrap with skinny latte, or does he save for a phantom house he will never be able to buy? Meanwhile, Betty the Boomer leaves a few sarcy comments on an internet website.

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Excellent idea! They would have the same job with inflation adjusyed salary as when they bought their first house.

And have to live in a shared rental whilst they look?

Channel four would bite your hand off.. 

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Bricks & Mortar
1 hour ago, spunko said:

pitching a new TV show

Sister show, featuring Mike, Molly, Mitch and Margo Millenial would appeal to a different age group.  They get 1960's/70's jobs and wages (inflation adjusted), and the programme makers supply their houses, goods and food at the prices of the time, (inflation adjusted).  Mike plans to live on beans-on-toast, so he can pay his off in 3 years, while Margo struggles to live without a washing machine.

 

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3 hours ago, Bricks & Mortar said:

Sister show, featuring Mike, Molly, Mitch and Margo Millenial would appeal to a different age group.  They get 1960's/70's jobs and wages (inflation adjusted), and the programme makers supply their houses, goods and food at the prices of the time, (inflation adjusted).  Mike plans to live on beans-on-toast, so he can pay his off in 3 years, while Margo struggles to live without a washing machine.

 

it wont go down well when mike bitch slaps molly for not haveing his tea on the table for when he gets in from work.

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InLikeFlynn
6 hours ago, RJT1979 said:

Not sure how people are affording houses. Any monthly payments for me will be split two ways and i am only essentially paying off 25% off a nothing special house. Some people must have mortgages of over 2k a month on modest wages. Any interest rate rises and the whole of the uk will grind to a halt. I cannot see anything but 0.5% rates for the next 20 years. Anything else is just not workable. You cannot evict 5 million people from their houses. There will surely be a continuation of HTB, they cannot withdraw it in the future.

Welcome. Just to point out that the affordability calculations stipulated by the MMR are only required for a remortgage with a new lender: if things get sweaty you can just remortgage with your existing lender or revert to the lenders SVR when any fixed/discount period finishes.

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Green Devil

I see Htb as just QE. What's happened is price have increased by 25% plus across the market. New and old builds. The extra 25% has been printed enters the economic system. Paid as dividends to stockholders. Some gets spent on beer some lost in pension funds most gets the execs a new German merc. There are side benefits. EAS get new mercs. As has been mentioned any slight rise in rates and its all toast so it isn't going to happen. I'd say no change in rates until the whole system dissolves which isn't going to happen (short of a great pandemic or plague perhaps which reduces a population). Its a new paradigm where the majority of wealth and assets are held by the 1%. 

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13 hours ago, Green Devil said:

I see Htb as just QE. What's happened is price have increased by 25% plus across the market. New and old builds. The extra 25% has been printed enters the economic system. Paid as dividends to stockholders. Some gets spent on beer some lost in pension funds most gets the execs a new German merc. There are side benefits. EAS get new mercs. As has been mentioned any slight rise in rates and its all toast so it isn't going to happen. I'd say no change in rates until the whole system dissolves which isn't going to happen (short of a great pandemic or plague perhaps which reduces a population). Its a new paradigm where the majority of wealth and assets are held by the 1%. 

Actually it's back to the old paradigm.  Piketty spent his whole book proving this with graphs etc.  The old paradigm only changed as a result of the 2 world wars in Europe at least. He cites Jane Austin in the UK and Victor Hugo in France and how much their characters had to live on annually.  The only difference seemed to be that inflation was broadly flat for a couple of centuries.  Apart from that there was the aristocracy in their castles/mansions(chateaux) and the rest in hovels and not many inbetween.

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