Again, reaction to these measures was muted. The RICS spokesperson says, 'Mortgage providers are still reluctant to lend on shared equity properties so the extension of the HomeBuy scheme will only have a limited impact on the current market. At best an estimated 10,000 people will be helped by the scheme so the overall effect will be insignificant in a market where over a million transactions occur under normal market conditions.'
'Bringing forward funding for social housing that has already been allocated for future years may provide a short term boost but could lead to future budget problems. This could lead to a repeat of the situation in the early 1990s where Housing Associations were given funds to buy properties then suffered in subsequent years when their budgets were restricted. More serious reforms are needed to the Housing Association business model so it is less adversely affected by changes in the market.'
Michael Coogan, Director General of CML says, 'The new shared equity product to help first time buyers will be useful for a particular tranche of would-be home-owners who genuinely wish to enter the market now. The proof of the pudding will be in its uptake, which may be fairly muted under current conditions but is likely to build up as buyers see the benefit of the interest-free equity loan.'
Check out the mortgage calculator, loans, credit cards & savings comparison tools
Or is it no help at all? Let us know
Compare current rates on loans, savings accounts, credit cards & mortgages with this handy tool
Thinking of buying or selling? Find out what's going to happen to house prices in the coming year
Our presenter could be popping round to your house for a consultation and a cuppa
Your Comments
Post your comment
Please note: In order to post a comment you need to be registered and logged in to Channel 4:
Sign In Here or Register Here
Comments closed
Comments are closed at the present time
Comments
Thank you for your comment!
Your message will be reviewed and the best ones will be published below.
If you intended to make an official comment to Channel 4 please contact us.
Comments