Commenting on the Help To Buy ISA scheme announced in the Budget, Duncan Stott, Director of PricedOut, said:
"Once again George Osborne has conjured up another Budget gimmick that will do more harm than good to the housing market. First time buyers need house prices to fall, but this Help To Buy ISA scheme will push house prices upwards, which is the last thing we need.
"Help To Buy ISAs mean the government is directly pumping taxpayers' money into the housing market to prop house prices up. It will do nothing to get the new homes we desperately need built and leave house prices for future first time buyers even further out of reach.
"Reluctantly we are forced to recommend that young workers seriously consider taking out a Help To Buy ISA, in order to avoid losing out to other buyers later down the road. However we are urging whoever ends up in power after the general election to cease and desist from these damaging gimmicky policies and instead embark on policies that will bring an end to rising house prices."
Commenting on the speech made by David Cameron setting out Conservative policies on housing, Duncan Stott, director of affordable house price campaign PricedOut, said:
"Sadly there is not much sign of a long term plan for housing in today's announcements from David Cameron. Under his premiership we have seen homeownership fall to its lowest rate since the early 1980's, and there is no sign that today's announcements would reverse this decline.
"A long term housing plan would involve a target to end house price inflation, allowing young people's wages to catch up with the unaffordable housing market. It would mean a sustained housebuilding programme of 300,000 homes per year to tackle the backlog of 1 million missing houses amassed over the last 10 years. And it would include a wholesale review of property taxation to encourage downsizing and discourage rent-seeking and price speculation."
On the starter homes initiative, Duncan Stott said:
"It is frustrating to see the Conservatives focussing on yet another short-term gimmick. We expect that these starter homes would have been built anyway, so the plan is unlikely to lead to the increase in new homes that we desperately need. By removing the need for developers to contribute affordable homes and community infrastructure, the scheme is likely to ignite more local opposition to housebuilding, thereby stifling housing construction. We also see no plan to ensure that the 20% discount is genuine - there is a real danger that the developer simply inflates the non-discounted price, meaning the supposed discount is just a ploy."
On green belt protection, Duncan Stott said:
"Everyone wants to see brownfield land brought back into use, but the vast majority of brownfield sites are already in the planning system. We need to face up to the fact that many of the homes that younger generations so desperately need will need to be built on low amenity greenfield land. The green belt around London was created 70 years ago when the capital's population was falling. We need a government-led review of the Metropolitan green belt to find the best sites to deliver much-needed homes."
On interest rates, Duncan Stott said:
"It is odd to see David Cameron pledging low interest rates when these are set by the independent Bank of England. Young people trying to buy their first homes would actually benefit from higher base rates as this would help them save up a deposit. Promising low interest rates will also encourage higher mortgage indebtedness, but the last thing we need is more mortgage debt being pumped into the housing market."
On Help To Buy, Duncan Stott said:
"It is disappointing to hear of an extension Help To Buy Equity Loans. A long-term housing plan would mean housebuilders able to stand on their own feet without taxpayers subsidising their sales. The new homes that have been sold under Help To Buy were already planned and under construction before the scheme was launched, so would have been built without the scheme. The buyers 'helped' by Help To Buy are dwarfed by the hundreds of thousands of would-be buyers who have now been priced out by rising house prices."
On Right To Buy, Duncan Stott said:
"The Coalition promised that every new Right To Buy sale would see a one-to-one replacement home built, but that simply hasn't happened. We can only support Right To Buy if if comes with an unbreakable guarantee that it will trigger additional housebuilding."
Today's English Housing Survey shows a 420,000 rise in the number of households renting, compared to a 250,000 fall in the number of households who own their home with a mortgage. Duncan Stott, director of the housing market campaign PricedOut, said:
"Unaffordable house prices have locked a generation out of homeownership. From these trends we can forecast that within seven years there will be more households renting than owning and paying off a mortgage. Unless we see action from government to get the housing market in fit shape for first-time buyers, we will inevitably see more and more working people stuck in the unstable private rented sector."
The latest data from the Office for National Statistics shows that the average first-time buyer house price at the end of 2014 was £208,000. This means that house prices were broadly stable throughout the second half of 2014.
Duncan Stott, director of PricedOut, the campaign for affordable house prices, said:
"While six months of stable house price brings some welcome respite for first-time buyers, most people simply can't afford the average first-time buyer price of £208,000. House price stability provides a chance for wages to catch up with the UK's unaffordable housing market, so we must not go back to seeing prices rocketing ever further out of reach.
"With housing likely to be a key issue to younger voters, we hope that all parties will be supportive of this period of house price stability. We need to see an ambitious long-term housing plan from our politicians to bring affordability back to the market."Read more
Aren't you forgetting something, Nick?
The Liberal Democrats unveiled the front page of their general election manifesto this week, which revealed what their top priorities are for their campaign and any potential post-election coalition negotiations. Disappointingly there's not a single reference to the housing crisis to be found. Here are the 5 reasons why Nick Clegg is making a big mistake:Read more