More Promise Of Good Times For First Time Buyers
In a move which is more headline grabbing than practical, the government has announced a new scheme to ease the pressure on first time buyers. The scheme will involve those who qualify paying reduced rent on a property while they save up a deposit to buy in the future. Once they have saved for the deposit they will then be able to buy a share in the property, starting at 25% which can then be added to in the future.
This seems to be yet another attempt by the government to be seen to do something to help those struggling to get on the property ladder, but like so many similar schemes before, the announcement was a little lacking in detail. In affect the tax payer will be subsidising the tax payer to purchase houses which nobody really wants at this moment in time.
In another move designed to save the house building sector the authorities have put aside £200 million for government agencies to acquire surplus housing and rent out to the public - yet again the tax payer offering artificial support to a dead market. It will be interesting to see how such schemes work in practice and whether they actually have the desired affect.
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