Broon plans to bung cash to 1st time buyers

Discussion in 'Current Affairs, News and Analysis' started by stoatman, May 23, 2005.

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    And this won't drive house prices up higher? Or is it simply a crude way to buy the votes of young professionals in time for the next election?
  2. Another way for the Government to interfere in something that they shouldn't. House prices would find their own natural level if they left the bloody housing market alone. If they want to control the prices then they should legislate to limit the level of borrowing available. The Base Interest Rate is too blunt an instrument to control it as it also effects the level of investment for businesses and this new scheme is going to be inflationary because it will mean that there will be a higher demand for houses with no new housing development programs.

    On top of that, who's going to fund all of these nice long-term loans? I believe that some of it will be from the banks and building societies, but the rest will (mostly) be from the tax-paying mugs who either don't own their own homes, or own them without the benefit of these loans!
  3. Yet another Labour scheme to tie folks to Labour, the party who gave national health and social security but never fully funded them, with all th poblems that now become more and more apparent as the years go by.
  4. Hypothetically:

    Does this mean if my home is about to be re possesed for whatever reason, GB will step in and loan me the neccessary cash.
  5. I believe it is an attempt to artificially bolster the housing market as we all know, high house prices mean consumer confidence and lots of money spent in the shops. Am I being cynical thinking this is an attempt to get some confidence into the ailing economy?

    Will this schemebe open to all? I imagine it willonly be for those on low incomes. What about the large proportion of people on "good" wages who still cannot afford to buy in the south?

    I can also see this will come back to bite the country in the arrse. At present, many people pump huge sums into buying a property and then rely on that for retirement. Under this scheme, they will have less cash tied up in property but how many will use the money saved to properly save for their twilight years. Not many I should imagine. We would then end up with more people who have inadequate fund to see them through old age and ergo, a greater pension burden on the workforce.
  6. I would imagine that for those on "low" incomes being able to afford their own home will be just as far out of reach as ever.
  7. Biscuits is right. In the very short term it will put more people in the position of being able to afford housing. However, the laws of supply and demand will mean that with more people looking to buy, the price will go up. Suddenly, people will again be priced out of the market. All it will do is inflate house prices meaning that their is consumer confidence build on perception not substance. Boom and Bust here we come.
  8. You know I'm starting to actually welcome the idea of the "bust".
  9. I too love busts.
  10. A nice bust now would show the country that actually Neue Arbeit have slowly strangled the economy, but since they have been the beneficiaries of such a benign international financial situation, they would have had to be utter numpties to make a total mess of it over the last 8 years.
  11. It's going to be interesting when it happens (and it will sooner or later).

    Our economy is rather "plastic", very little solid, practical industry and a fast declining agricultural sector.

    I predict a lot of people taking "chav" lessons.