The Government is expected to announce a £1 billion mortgage subsidy scheme that will aim to help first time buyers on the property ladder. The 'shared equity plan' will allow first time buyers to find 75% of a property's value, with the rest being underwritten by lenders and the Government. Details of the scheme, which is due to be announced by Chancellor, Gordon Brown in the near future, are expected later this year.
Our view
An excellent way for the Government to use YOUR money to sell things back to YOU. They are buying a share in brand new, good quality property having successfully disposed of most of the old council property that needed repair work (accepting that it was the Tories that actually started the right to buy council property).
What a great scam, although we are sure some first time buyers will be grateful to get on the ladder, we believe this move is bad for the property market as a whole, it will downvalue other property.
Where will they build? Greenbelt?
It is amazing how the rules change to suit.