Wednesday, 22 April 2009

The Budget 2009 - measures for the property market and housing industry

The measures and a summary according to the Owl (good work from FindaProperty reporting so quickly on the Budget)

1. Stamp Duty Holiday for homes valued at up to £175,000 to be extended to the end of the year

For those first time buyers wanting to live in most capital cities (especially London) this will not make a blind bit of difference as one cannot buy a property for under £175,000. Oh well, I don't like cities and see that local authorities are being given funds to build eco friendly houses (see below). Good move chancellor, encourage me to move to the countryside.

2. £500m to kick start stalled housing projects - including £100m for local authorities to build energy efficient homes.

We all know what £x million to a local authority means. Yep, they will spend it all on planning, printing and photocopying the new guidelines for developers. I would wager all of my carbon footprint that if I am a developer seeking funds I won't be able to get it unless I am using a rare clay cement from the Moors that actually costs more than the house I am building.

3. Scheme to guarantee mortgage backed securities in an attempt to boost lending.

Oh what joy, a 'scheme', we are all saved! Who knows what a 'scheme' means?! I do. It means a token gesture to let the banks know that the government wants them to start lending again, please..... pretty please. I am sure the banks will all treat such a weak lily livered scheme as nothing more than paperwork and will not change thier current policy one iota. So if you don't have a 20% deposit, are under 35, don't have rich parents near death, are happy to agree to a five year fixed rate at 4% you still won't get a mortgage.

4. An additional £80m for shared equity mortgage scheme.

Another scheme, wahooo! No doubt the details of these schemes will be released later, i.e. after they have realised that it can't work.

5. £50m to upgrade armed forces' housing

I couldn't agree more and let's hope they give the troops more in the way of funding for weapons, radios and stuff they need so they can actually come home. That said, I suspect that most soldiers won't qualify for this fund in any event as some busy body will decide that it can only go to a soldier who has served in 18 campaigns, is on active service now, has no children and is over the age of 55, basically ruling out everyone!

Well, good news then and I am glad they have really put some thought into this Budget for the housing market.

Anyway, I am off to join the the Army in an eco friendly controlled local authority.

Cheers - Private Cynic

2 comments: said...

i have to agree with all wat you said... great post

Sell House Fast said...

I personally don’t think we will see stamp duty return below £175,000. A good thing as well. I also think it needs to be staggered it bit better too jumping from 1% to 3% is not right!