Wednesday, 14 May 2008

Gordon Brown

Gordos new financial miracle, draft queens speech!

According to the BBC its £200m fund to buy unsold new homes and rent them to social tenants or make them available on a shared ownership.

An additional £100m would be made available to shared equity schemes to help more first-time buyers to purchase newly-built homes on the open market .... now that would be a work of genius.

Ok Gordon great strategy, wait for the market to be utterly saturated with a load of virtually unsellable flats held by developers with serious cash flow issues, then put out a policy announcement well ahead of the fact that scares off any lingering potential buyers and drives the prices down even further then snap them up at barely more than construction cost thus replenishing social housing at the expense of construction firms and their shareholders.

Think about his gamble with gold in reverse. £40bn here, £50bn there, £200m for good luck elsewhere.

How many more rolls of the dice is this "prudent strong fundamentals uninterrupted growth " Parrot, going to make with OUR money?

I speculate that they'll give the money to housing associations for the most part with some kind of stipulation that it has to be spent on pre-existing houses.

I can't see the government actually doing anything themselves since housing is one of the few areas that they haven't taken direct control of over the last 30 years.

FTB are intelligent enough to realise that by waiting while house prices fall they will be able to buy a complete house all 100% later rather than a 50% or 75% share now for the same price.

Or am I expecting too much?

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