Monday, 21 November 2011

Government mortgage indemnity scheme

The new government housing scheme is a  classic conservative policy proposal from page 1 of the playbook: ensure that we have a home owning democracy of floating voters.


The key proposals:


  • Mortgages of up to 95% of the value of new homes to be offered with government underwriting part of the risk

  • £400m public fund to help developers “unblock” stalled housing schemes

  • Largest discounts for social tenants wanting to own their properties under right to buy

  • More public sector land to be made available for building

  • Planning obligations on stalled projects reviewed

  • Up to £150m to help bring empty housing back into use

http://www.bbc.co.uk/news/uk-politics-15810966


Interestingly this seems to be a policy that has some kind of consensus and it has been broadly accepted as a good idea, though those on the Left think it hasn’t gone far enough, as does the Homebuilder’s Federation (quelle surprise!)


http://www.bbc.co.uk/news/business-15817982


Perhaps it is a sign of the current crisis and talk of a return to recession that the Right have accepted government involvement in the market quite so readily.


؟Still if it artificially boosts prices and provides everyone with a wealth effect that makes them spend that’ll be good؟


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