First time buyers need £8k deposit for a £200k house - housing bubble?

http://www.thisismoney.co.uk/money/mortgageshome/article-3009921/First-time-buyers-need-save-8-000-mortgage-200-000-home-following-launch-Help-Buy-Isa-Budget.html#comments

Anyone else think this will fuel a housing bubble? if theres loads of people able to buy and not enough houses on the market, the price of houses goes up.

On the face of it, looks attractive but have the government really thought this through?

http://www.thisismoney.co.uk/money/mortgageshome/article-3009921/First-time-buyers-need-save-8-000-mortgage-200-000-home-following-launch-Help-Buy-Isa-Budget.html#comments

 

Anyone else think this will fuel a housing bubble? if theres loads of people able to buy and not enough houses on the market, the price of houses goes up.

 

On the face of it, looks attractive but have the government really thought this through?

But the buyers will still have to be able to afford, and get, a mortgage...

But the buyers will still have to be able to afford, and get, a mortgage...

True..but the barrier of deposits is removed.

I guess in theory this opens up the housing market to more people quicker.

True..but the barrier of deposits is removed.

I guess in theory this opens up the housing market to more people quicker.

The deposit isn't totally removed..you do still need one..you'd still have to save 10k to get anything meaningful out of it..

I'm alright Jack, everyone else can do one

I'm alright Jack, everyone else can do one

Good for you Mecky... glad you're sorted... but I'm not sure what your comment has to do with the topic..

The deposit isn't totally removed..you do still need one..you'd still have to save 10k to get anything meaningful out of it..

Better than 30k.

I think 10k is manageable for average earners.

Better than 30k.

I think 10k is manageable for average earners.

Where is 30k from? The gov. will add an extra 25% on up to a max of 3k..with average house price at about 180k it's not an awful lot of money..

http://www.thisismoney.co.uk/money/mortgageshome/article-3009921/First-time-buyers-need-save-8-000-mortgage-200-000-home-following-launch-Help-Buy-Isa-Budget.html#comments

 

Anyone else think this will fuel a housing bubble? if theres loads of people able to buy and not enough houses on the market, the price of houses goes up.

 

On the face of it, looks attractive but have the government really thought this through?

Instead of doing something to control the price in the market place, they are in effect just propping it up by assisting FTB.

Eventually they will stop this help, and then without the support the correction that is needed will occur... Delaying it can't help though, IMO.

---------- Post added 26-03-2015 at 10:45 ----------

The deposit isn't totally removed..you do still need one..you'd still have to save 10k to get anything meaningful out of it..

8k, that's the point of the article, the government then adds 2k to the deposit, and gives you an interest free loan of 20% of the value for 5 years.

Where is 30k from? The gov. will add an extra 25% on up to a max of 3k..with average house price at about 180k it's not an awful lot of money..

I think you can also get the 20% guaranteed scheme..on top of your ISA.

---------- Post added 26-03-2015 at 10:46 ----------

Instead of doing something to control the price in the market place, they are in effect just propping it up by assisting FTB.

Eventually they will stop this help, and then without the support the correction that is needed will occur... Delaying it can't help though, IMO.

Good point, it would make more sense to limit or deadline this scheme.

Of course mortgage applications are supposed to now be assessed on affordability, not just a multiple of income and a deposit.

Of course mortgage applications are supposed to now be assessed on affordability, not just a multiple of income and a deposit.

I did mention that in post #2