The government shouldn't be propping up these mad house prices

[flashbac]

Forecast before the budget was that property prices would be more or less static this year. Then came flipping Rishi extending stamp duty and introducing a mortgage guarantee for 95% mortgages. Since then demand has hit the roof.
I spoke to an estate agent yesterday who said we were in a "red hot" phase and she last encountered such madness in the 70s (similar bubble caused by too much flowing and easily available credit, burst by the oil crisis).
I fear for younger generations that will be left behind.

The price of new builds where I live is insane. I don't know why anyone is stupid enough to buy one.

Well, an awful lot of people have died in the last year!

Not necessarily leaving empty houses. And as you say, new builders won't fill large sites with starter homes if prices drop. They'll build just enough.

I bought in 2008. There were exactly 2 houses in my entire town under our budget of £125k and the other one needed £10k of tanking. FTB need somewhere to buy.

Yeah FTBs are the only ones getting screwed over by the government, they are getting them to take out record debt via help to buy, shared ownership schemes and now 5% deposit schemes, the tax payer loses out and house builders pay their execs £20 million bonuses each year of tax payers cash, the chancellor needs locking up for theft, every scheme he introduces just makes the problem worse and house prices increase to record highs. BTL landlords must love the young paying their mortgages off for life.

@Cripesitsthegasman19

The price of new builds where I live is insane. I don't know why anyone is stupid enough to buy one.

Govt equity scheme. Adds about 40k onto a new build outside of London.

Gobble gobble gobble said the Persimmon etc shareholders.

I actually benefited from HTB, but we did it in the first 3 months of the scheme nearly 8 years ago and were able to remortgage to pay off the loan before we paid any interest. The new build house prices at that time were low due to a slump in the market.

The same builder is now building a very similar townhouse on a site up the road. We paid £170k and they're wanting £325k!

Well it’s slow here in our village in east mids. We’ve been on market since November and so have many others here. Probably doesn’t help that we are near Leicester who have been locked down for 12 months now.

I remember a heated discussion with a high end estate agent about five years ago who thought I was a socialist by objecting to 'Help to Buy, wanting 'Help to Build' instead.

The latest measures by the Chancellor are yet another example.

My 25 yr old ftb daughter has just bought a new build at 290k with her boyfriend. They bought at the height of covid when the minimum deposit was 20% and the house value was too high for them to gain from the homebuyers isa scheme. They've needed a bit of help but they've got there, if we face a property crash the higher deposit will have worked well for them.