This week’s top contribution is from Terry Arch for his response to the article: Help to Buy hits record completions in busiest quarter since launch.
He said: Looking at the prices of properties, this is probably the only way that a lot of people will actually get on the property ladder as they want the most attractive properties from the beginning, rather than to start smaller and move forward.
I can see that in five years’ time, and what is being proved now even with an increase in property prices over the last few years, is that when they pay the government back they will not have sufficient equity to put down on a new property, legal fees and stamp duty.
This is just like the old shared appreciation mortgages with the banks in the 1980s and 90s, but the difference is the government is the funder.
I do believe this is another time bomb waiting to go off.