With mortgage loans falling for the 12th consecutive month, the Bank of England admitted the likelyhood of further falls in house prices. Mortgage approvals were 33,000 in July down by nearly a third on last year. According to the Nationwide, house prices have fallen 10% in the past 12 months.
Mortgage approvals are a good guide to future house prices. With less mortgage approvals it means that demand for housing will remain weak as people struggle to get any finance or prefer to stay out of the housing market in existing climate.
Gordon Brown has suggested the government will bring forward a scheme to help first time buyers earning less than £60,000. The scheme is aimed at providing first time buyers with help to get finance. The government scheme involves giving an interest free loan to buyers in return for an equity stake in the house.
3 comments ↓
Am I missing something here? The national average income is only around £20,000 so does this apply to almost everyone except city slickers?
The government are talking a load of bananas recently. Stamp duty holidays, councils buying back houses, 0% loans for an equity share? How does this actually help anyone? It’s simply a government panicing and spending money it doesn’t have.
Yes, Most people earn less than £60,000.
I guess the government is concerned falling house prices will exacerbate the economic slowdown.
What is the government doing helping first time buyers?
They have nothing to lose with house prices going down.
They should be helping people who were yesterdays first time buyers keep their homes.
Those who bought in the last few years who are struggling to survive at high interest rates!
Some of them with new families and so on.
I am one of these people faced with 40% mortgage increase because my 30% equity has reduced to 10%. I have lived in my flat for 11 years and it’s my home. I am not about to be forced onto the street because the government wants to help some first time buyer take my home away from me!
They should be helping vulnerable people who bought a home in the past 5 years who are already established.
It is not write to kick 30 somethings out of their homes to make way for 20 somethings!
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