Mixed reaction from UK property industry to new scheme to help first time buyers

[Nicholas Wallwork]

A £250 million package to help thousands of first time buyers onto the UK property market has been met with mixed reaction, welcomed on one hand but derided as not enough on the other. Buyers will have to put up a 5% deposit, the government and homebuilder will cover 10% each and then the remainder [...]

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[Property Banker]

The scheme is expected to inject some growth in the property industry but surely will only help 10,000 buyers which is not really enough to make a dent. It is merely a gesture and not a long term fix. Many many potential FTBs are stuck in the rental market because large deposits are now required.

 

[davidoff1]

Unless there is a strong recovery in the 100% LTV mortgages available I think we may see a gradual reversion to people living in rented properties. imo this isn't due houseprices and deposits being unaffordable but a general unwillingness of many people to actually save some money or to compromise on location.

 

[expo09]

Its more good news than doing nothing but there are a few problems.

This is only going to last a year. So if this is supposed to encourage new building I don't know how this is going to work. It takes more than a year for property developers to buy land, get planning permission, build homes, and sell them.

The price of houses is an on-going problem and not something that will be solved because a few people get a helping hand for one year. What about potential first time buyers in 3, 5 or 10 years?

I'm in the position where I would have had enough to pay a 5% deposit a few months ago. But because I knew it would take years to get the 20-25% you needed I've ended up moving out of home to rent. No I find out that had I not done that I might have been able to buy, something that will now probably take me another 15 years. Very frustrating.