Another potty housing plot from the government – MoneyWeek

This,ofcourse,hasntstoppedeithertheGovernmentorthehousingindustryfromtryingtocomeupwithideastoresuscitatethemarket。

ThelatestwheezefromtheCouncilofMortgageLenders(CML),reportsTheTimes,isfortheBankofEnglandtoactasasortofbuyeroflastresorttopropupthemarketformortgage-backedsecurities。

Butsofarallattemptsbycentralbanksacrosstheworldtopumpliquidityintothismarkethavefailed–ifthebesteffortsoftheFederalReservetosavetheUShousingmarkethavefloundered,similarmeasuresherearentgoingtodoanythingfortheBritishmarket。

Meanwhile,theGovernmentitselfhascomeupwithyetanotherofitsstrange,complicatedlittleschemestohelpfirst-timebuyers。

Thisrentfirst,buylaterpilotschemeisbeingpilotedinEngland。

Theplan,reportstheBBC,isthathouseholdsearning£60,000orlesswouldbeabletorentahomeat80%orlessofthegoingratefortwoorthreeyearsinordertosaveupforadeposit。

Buttheywouldhaveanoptiontobuy25%ormoreofthepropertyatanytime。

TheGovernmentsaysithopesthiswillhelp75,000first-time-buyerhouseholdsontothepropertyladder。

Thisisbeyondridiculous。

Thepeoplethisschemeisaimedatpresumablyalreadyliveinrentedaccommodation。

Sowhywouldtheygotoallthehassleofmovingintoanotherrentedpropertyjustontheoffchancethattheymightbeabletobuyitoneday?

Allthisschemewilldo,atbest,isdrivedownrentsintheareaforotherlandlords–somethingImsurebuy-to-letterswillbeoverjoyedabout。

Therealityisthereisonlyonewaytogetthehousingmarketmoving–andthatsforpricestofallevenfurther。

Thatwilldependonpotentialsellerscomingtotermswiththefactthattheirhomesarenowworthalotlessthantheythought,somethingpeoplearenotoriouslyreluctanttodo。

Butwithunemploymentnowrisingfast,moreandmoreunluckyhomeownerswillfindthattheyhavenochoice?

NakedTextNakedText