New Property scheme

http://news.bbc.co.uk/1/hi/uk_politics/4570045.stm

I think this sounds great, but it seems it only applies to new houses?  Has anyone else heard more about this?

Yes it is big news here this morning and as we're buying in the near future we're paying close attention.  Looks like the details won't be finalised until next week or so.  Definitely isn't just for new homes though, just for new buyers.

I'll believe it when I see it.  They've been saying this since I got here three years ago.

maybe im stupid but i didnt understand that.  they are saying you have to have half the cost of the home your buying?!

There are some really, really interesting comments about this in BBC's 'Have Your Say' section that make a hella lot sense. 

This scheme will not apply in Scotland:

http://thescotsman.scotsman.com/index.cfm?id=561412005

We're quite anxious about this - we've been looking into the similar scheme with the housing authority, but that's so limiting and the developments in our area are in really unappealing towns, so this might be a really important proposal for us - there's no way we can afford to buy any other way right now....

Karenn, essentially, you buy 50-75% of the house, which reduces the mortgage that you have to have. Either the bank or the govt. or whoever (not clear on the details just yet) own the other 50-25% of the house and you pay a reduced rent on that part. And then as your circumstances change (hopefully) you can opt to buy the rest later.... Or not if you can't.

And then as your circumstances change (hopefully) you can opt to buy the rest later.... Or not if you can't.

And that would be the part that makes me a little more than hesitant... 

And that would be the part that makes me a little more than hesitant... 

Using state intervention to prop up an over-inflated housing market is what scares me. 

How about paying nurses, teachers, and other key public sector workers a living wage instead?  Our local NHS uses 50% agency nurses - and pay huge fees to do so - instead of giving NHS nurses the pay and working conditions they deserve.  Many of these nurses then leave the NHS and go agency to earn more money and be able to pick their own schedule. 

Yeah, I hear ya, peedal. It worries me too, but dh really wants to stay in this area, near his family, and there is just no way in hell that we can afford to buy here.... It may get more feesable once I finish my degree and start properly working again, but it's a lot of pressure on me to get a high paying job rather than a emotionally satisfying one (the two never seem to go together!) But if we did a part ownership while I'm in the early stages of my new career, it would seem that our circumstances would improve enough as that career progressed that we could buy the rest of the house. Sigh. I don't know. That's also just my selfish take on it....

And don't think that dh isn't lobbying for me to go to work for a NHS mental health trust to get us on the key worker list. Of course you're right, expat, I'm not sure the non-living wages make it worth it....

It sounds like another of this administration's half-baked ideas to try to convince people that they care.   Call me cynical if you like, but I'd be looking for an ulterior motive as well, like maybe the chance that the government will end up obtaining ownership of properties when people cannot keep up with repayments.

I have a better idea.  Why doesn't the government stop taking so much money in tax in the first place, then maybe the cost of housing wouldn't be so ridiculously high in this country?     Even something as simple as a reduced (or zero) VAT rate for materials and labor on house repairs would be a start.

It sounds like another of this administration's half-baked ideas to try to convince people that they care.   Call me cynical if you like, but I'd be looking for an ulterior motive as well, like maybe the chance that the government will end up obtaining ownership of properties when people cannot keep up with repayments.

I have a better idea.  Why doesn't the government stop taking so much money in tax in the first place, then maybe the cost of housing wouldn't be so ridiculously high in this country?     Even something as simple as a reduced (or zero) VAT rate for materials and labor on house repairs would be a start.

I see your point of view in this, Paul.  To me, this looks like nothing more than right-to-buy through the back door.  The council tenant bought the property at a discounted rate, thereby removing the property from the public housing stock available for low cost rental, and then sold it at market value - which usually meant a healthy profit - and moved on.  The next buyer would have to be one who could afford market value, most like not another struggling first-time buyer.  This is why schemes like this won't have any -and perhaps even a small negative - long-term impact on house prices. 

The real problem is that because of the pensions crisis, many turned to multiple property ownership to fill the gap, especially as there are few penalties for becoming a second, third (or more) property owner.  Consequently, supply was decreased and prices rose accordingly.

The housing problem is a shortage of supply.