5 2 mins 10 yrs

Having enabled the UK property bubble to rise – and then burst – Government once again demonstrates a lamentable understanding of what to do next;

Up to 100,000 people will get Government support to buy homes worth up to £500,000 in a Coalition move to revive the middle-class dream of home ownership, ministers will announce. David Cameron will today formally open the NewBuy Guarantee scheme, where the Government guarantees part of a homebuyer’s mortgage, allowing them to take out much larger loans than they might otherwise be eligible for. The guarantee will allow people buying new-build properties to borrow up to 95 per cent of the value of their new home.

So, rather than let the market take care of things and encourage young people to SAVE, Government tries to artificially boost the market, again.

Now, WHAT can go wrong with that? When the State tries to manipulate or control the property market, only bad things can come from it but then again – hey – it’s YOUR money they are using.

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5 thoughts on “NO LESSONS LEARNED

  1. Government policy: When one bubble bursts……..Replace it with another!

    Socialists will NEVER admit a free, capitalistic market is the answer, because they feel that it would discriminate against the poor, disenfranchised souls in the arena.

    And they know it’s cast in stone that it’s the RIGHT for everyone to have a house of their own, whether they can afford it or not.

    So, England is doomed to repeat one disaster after another…….Using the taxpayer’s money to bridge the gap.

  2. Gosh, that’ll just be great, for the developers, contractors and banks that have chucked cash the Tory way.

    Maybe we go the whole hog and hire some Fannie and Freddie execs to run the scheme, because it’s those disasters which this idiotic scheme is replicating.

  3. This is a bail out by the back door methinks.I notice the scheme is to buy new-builds only.No money to buy that little terrace down the road. No,all those new properties lying empty for months waiting for an upturn in the market. Where did this idea really come from I wonder?

  4. Mortgages use to be of fifteen or twenty years legnth, that gradually extended to twentyfive and lately to thirty years legnth.

    Now that was all very well when many jobs could be expected to last for at least a similar length of time, if not a lifetime. Nowadays jobs are very much of a shorter duration, perhaps not a problem when jobs are plentiful, – but that is most definetly not the case at this time, – which poses the question; – just how reliable is the borrower? – certainly not a ‘triple A’, which should automatically increase the interest charge for such inferior debt.

    It seems the only ‘long term’ protected jobs now only exist in the public sector, and that is not likely to change for a very long time, so perhaps this is all part of the plan to sweeten PSW’s come election time? More than likely it is yet another unitended consequence…

    The truth is that for most working class folk their prime asset has been their home, when house values fall then so does their spending power and this reduces any fictitious growth the politicians are trying to convince us we are enjoying.

    House prices, particularly under Blair, Brown have been grossly over inflated to the point of being almost unaffordable by most folk. As suggested above – even by ATW’s very own property developer, – this scheme is a bail-out for all those scumbags who have foisted thirdrate, substandard, over priced jerry-built accomodations on us.

    ‘New builds’ – do they mean those two extra houses built in next door’s garden, – with planning consents courtesy of a cooperative councillor, – which will certainly adversely affect our local water,sewage, phone and internet services.

  5. Anyone taking on 95% debt to purchase a house deserves everything they get. It’s just a shame that we the frugal tax payer will be expected, no, forced to bail out these twats when their life long ambition goes under the hammer as soon as interest rates start to rise.

    Hell they’re rising now without the Bank of England base rate moving…

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