Renters getting shafted yet again

[Upthebracket22]

I know this might be just noise but Ed Davey is proposing that mortgage holders get £300 a month grants!

www.theguardian.com/politics/2022/nov/06/lib-dem-leader-ed-davey-proposes-300-a-month-mortgage-grants

I mean WTF? What about private renters who get shafted by landlords with huge annual rent rises! Do renters get a £300 a month grant?

Absolutely fucking shocking to be honest! (And clearly not really viable as it will feed even more into inflation)

This.
Ed "I don't know what a woman is" Davey is never going to get a sniff of power-Peppa Pig has more chance-so he can put out any stupid thought that pops into his stupid head.
He is more to be pitied than laughed at as my nan would say!

Don’t get me wrong, this is a dumb idea but… we own a BTL property which, when the mortgage term ends, is going to cost more in interest costs than we will receive in rent. We will then either have to sell, or put the rent up, as will lots of other landlords. Don’t have a solution but it’s a ticking timebomb for the rental market.

Oh God, we’re not back to knowing what a woman is again, are we? One thread without it would be so nice.

There is no suggestion this will go to anyone different - if you have a very very low income and rent you get UC. If you similarly will have a very low income and are faced with doubling of your mortgage this scheme (if it does ahead) might be available. Not surprisingly there will not be a penny for most renters some of whom are very well off nor most mortgage holders.

It's Ed Davy, not a serious politician. You might as well be annoyed at David Icke's economic policy.

The difference between helping out a homeowner instead of s renter is that it would help pay for an asset at the same time as probably make that asset go up in price so not really a fair way to use people’s taxes.

That's for a single parent. Not all renters are single parents.

Governments need to stop propping up housing markets. It's part of the reason that housing is unaffordable.

@Blossomtoes.
It should be on every thread and everyone-even those like Davey with pretend power=who refuses to define a woman should be called out.

Of course, if you agree with him that chest feeding and birthing parent is perfectly acceptable, then I can see why it would annoy you.

Tough fucking luck.

@headstone yes quite. In the same way that Sunak propped up the housing market during covid using peoples taxes. Totally and utterly unacceptable

@silentpool yes indeed. I do think those days are long gone and actually there will be a crash. The torygraph predicted 30% last week- then more young people will be able to buy all these BTLs that will flood the market apparently

Because in this case such a handout furthers the wealth inequality between those who own and those who cannot own a home. Paid for by both. It’s a reverse Robin Hood.

This isn't the way it works. The government pay only the interest portion of the mortgage, on the basis that most mortgage lenders will allow a temporary drop to interest only for a relatively short period of time. Usually a year, sometimes two, so the homeowner is under huge pressure to get back to work, plus probably have used up most if not all of their savings making the mortgage payments for the last 39 weeks.

I agree with this.

They wont give grants to mortgage holders as it will be obvious that they are wanting to protect one side of the coin, they did it in 2008 and got away with it. It won't happen again as the markets know it is a can kicking excercise.

It's on every mortgage application that rates could rise and fall, a lot of people have been fooled into thinking even a .5% increase was not going to happen.

The historic low interest rates where because of 2008 crash, it was essentially to prop up the housing market, at some point everyone is going to have to take a bath

It doesn’t annoy me. It bores me. It’s done to death. We’ve all got the message.

@User38899953 yes but it’s not true. Renters don’t all get housing benefit.

we still need a decent rental market though with houses available. If you are moving between short contracts of 6-18 months you can’t buy a house every time!
some people don’t want the responsibility of home ownership
some people need to rent between owned homes
there are many reasons people need to rent and houses are needed at afford prices

if prices drop either people with money in the bank or people from overseas will start buying again as it will look like a good investment

I really don’t know what the answer is but falling house prices and fewer landlords probably isn’t it.

I also forgot to mention that not only is it help with the interest only, it's paid on the basis your interest rate is 2.09 per cent regardless of what it actually is, it's also capped at a capital sum of £200,000, and the money they help you with is then charged against your property. So basically they are giving you sod all. Because when your property is sold, it all has to be repaid. So those people who think the government helps homeowners really need a reality check.

You think! You think we've all got the message? Really?

Anyway, poor ol' Ed can't tell the difference between a tit and a chest, even when he looks in the mirror he can't see a tit in the reflection.

So, just ignore his economic ideas-they come from the Janet and John Book of Econmics and he has his hands full working out who is Janet and who is John/

@Blossomtoes We should all be using grey rock. Sick of hearing about it, on every bloody thread on here.

@Beezknees it's slightly higher for two parents

Paying the interest on a home loan is still helping to buy the home.
And “only the interest” you say that like it’s peanuts!

On an average mortgage for an average £300k property with todays 5.29% interest rate, the interest portion is over £1k/month for the first 7yrs of the mortgage. In fact the interest portion of a monthly mortgage payment is over 50% the entire payment for half of a 25yr mortgage term- 12.5yrs ! 🙄

If a home owner claims UC the entire 25yrs, the taxpayer will have given them £217,304 in help to buy their home.

if prices drop either people with money in the bank or people from overseas will start buying again as it will look like a good investment

No they won't as the lockdown was the blackswan globally, ever rising houseprices are going to go the same way as NFT, the smart money is moving out as we naturally need to build far more houses just to meet demand as it is.

This is a last thow of the dice from certain section of politicians trying to gain votes from a certain section of voters (and it isn't just con voters before someone tries to imply), the fact we have had over a decade of record low interest rates to prop up the market since 2008 and people still expect ever rising houseprices and nimby any new developments is why they are now expecting help

Keep hoping op. Keep hoping.