Scrap the First Time Buyers Scheme

It doesn't work and isn't helping anyone. It's far too complicated. 

Replace it with a grant system to help young couples raise enough money for their mortgage deposit. 

Why the contribution is important

It doesn't work and isn't helping anyone. It's far too complicated. 

Replace it with a grant system to help young couples raise enough money for their mortgage deposit. 

by Axe_Mann_Cometh on April 05, 2017 at 02:27PM

Current Rating

3.5
Average score : 3.5
Based on : 6 votes

Comments

  • Posted by dpfellows April 05, 2017 at 14:43

    If the Scheme was scrapped market forces would apply. A universally safe price to earnings ratio is about 4 times - the safe average price for the average wage earner should be about £120,000. When inevitably interest rates rise a lot of people are going to be badly squeezed financially - even a 1% increase will have substantial impact. Encouraging them into unaffordable housing is frankly madness and a bad use of taxpayer monies
  • Posted by pent April 05, 2017 at 14:55

    There is already a grant system which works very well.
  • Posted by Jeni April 06, 2017 at 11:48

    The First Time Buyer Scheme is entirely useless and takes all choice and freedom away from those wishing to buy a house. It is enormously complicated and a waste of time.

    This Scheme determines, how big your house is allowed to be, how many bedrooms you are allowed to have, where your house is and can take years to get a property. My husband and I are now doing it all ourselves as we do not want a 2 bedroom property and we do not want to live in Colby or somewhere similar. The shared equity scheme is just as complicated and determines that as a couple we are entitled to a grand total of £175K for a property, which is clearly not enough to buy a family home and at a push might afford us a 1 bedroom flat, which when we choose to have a family we will have to vacate and go through the whole process again.

    The vast majority of those looking to purchase their first house, just need help with their deposit. They do not need a specially built house, or a bedroom cap, or for their house to be chosen for them. Just help with their deposit!

    If the government just helped people with their deposits, it would free up social housing, bring in more revenue through rates and keep young people on the island. There could be a 100% mortgage scheme for new buyers where the banks lend 90% and the 10% deposit contribution comes from the Government (after rigorous financial checks to ensure repayment will be made). That way the money will be repaid with interest. Why make everything so complicated...
  • Posted by dpfellows April 08, 2017 at 21:52

    A report in Ireland has indicated that their equivalent of the First Time Buyers' Scheme has pushed up house prices and many of the beneficiaries did not actually need the grant. A scheme that made it worse for new buyers does not seem to be a sensible idea - except perhaps for developers?
  • Posted by ninjadispenser April 09, 2017 at 14:09

    I think after Brexit our house prices are going to plummet anyway as they seem to be artificially high at present,even in the recession they didn't dip appreciably. I do agree that help with a deposit is more useful than all the constraints that go with it.Are they using the bedroom cap as a type of contraception? You want kids so move out to bigger house? Don't get the thinking behind that at all.
    Having a system that does not lend to people that would default even if interest went up marginally is kinder than what led to the crash in England,lending 100 per cent mortgages that were at the top end of ability to pay was greed on the part of the Banks and deregulated by Blairs government so no one overlooking it.Oh and the Americans sold our banks a load of worthless mortgages which lost billions which the taxpayer had to prop up.I know it's hard to save a deposit but it's the only way in the end and better than losing it all,house,money and dreams.
  • Posted by Jeni April 13, 2017 at 11:11

    ninjadispenser - I totally agree with what you have said... I just think that if the government really wants to have any type of scheme at all, it should be focused on what people actually need. I have no idea why the bedroom cap is in place or why on earth the amount of bedrooms in a property is something that the government should even be concerning itself with. If you move out of a First Time Buyer House before a certain amount of time (5 years I think) you have to sell it back to the government. If you get a house under the shared equity scheme and need to move to a bigger property the outstanding balance of the Department’s equity share, plus any accrued interest,
    will become repayable. This is more likely the real reason for not allowing people to buy a big enough house they would lose out on their share/house.

    That is why I think it is over-complicated and neither use nor ornament when it comes to buying a house. They might as well scrap the scheme entirely, that should save a few quid!
  • Posted by bluffy May 10, 2017 at 15:37

    Alter the scheme - there's lots of ways to help people save for a deposit - savings account incentives, short term private lets below market rent to enable people to save...

    Offering a grant means the funding is never recycled to enable someone else to access affordable housing.
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