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.