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Think tank calls on government to scrap its Help to Buy scheme…

Enable Independent, IFA’s in Bishops Stortford noted that the think tank ASI called for government to scrap its Help to Buy scheme. The Help to Buy scheme was introduced by the government this year, and offers a 15% LTV deposit for those people wanting to buy a new home, with the borrower having to put down a deposit of between 5-15%. It is part of the government’s plans to stimulate growth within the UK. But some UK economists, think tanks and charities are against the plans.

Investors from around the globe have predicted the impact on the property market, and have come from far and wide to buy their own piece of ‘Pied-a-terre’ in the heart of our capital. Asian investors alone are expected to invest billions in European property of the next five years, as they see it as being a long-term sustainable investment option.

The argument against the scheme is the fact that it will create another housing ‘bubble’, the ASI would like the government to come up with other ideas such as releasing farm land for development and scrapping mandatory affordable housing quotas. They say that the plans currently in place to not offer a long-term solution to the housing crises in the UK.

Charities such as Shelter, a charity set up to help the homeless, have stated that this new scheme will simply inflate prices making it even harder for people to get onto the property ladder in the future.

The government really does need to think about taking responsibility for the long-term growth of our economy, that will not only benefit those people able to invest in property in the UK at this present time, but also enable our younger generation to become property owners.

The strange factor behind this scheme, is that stamp duty thresholds are not expected to be reviewed, which will also have a negative impact on first-time buyers being able to afford their first home, as house prices in the UK increase and more and more people will find themselves being forced to pay out large sums of money in stamp duty, so does the government need to think other aspects of the house buying process?

If you would like help in planning to buy your first property, then why not get in touch with our team of Independent financial advisors. 

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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