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Part equity scheme to be considered
By election Requisition Meeting. Manx Legion Kate Beecroft
A CALL for a part-equity mortgage scheme for local authority housing tenants over 40 will be considered, it’s been confirmed.
Kate Beecroft (LibVan, Douglas South) tabled a motion in Tynwald this week calling for proposals for such a scheme to be included in the report of a housing review being carried out by the Department of Social Care.
Although Social Care Minister Chris Robertshaw MHK did not want to go as far as to say actual proposals would be included in his report, which will come before Tynwald in April, he tabled an amendment to Mrs Beecroft’s motion which said the report would include consideration of such a scheme. The amendment also said the report would consider the targeting of any such scheme to specific groups, for example first-time buyers and those who were over 40 and are living in local authority housing.
Tabling her motion, Mrs Beecroft said a part-equity mortgage scheme would be a cost-effective method of giving people the chance to own their own homes. For instance, she said someone over the age of 40 may want to move on from local authority housing but may not have enough conventional years left to get a mortgage.
‘It would enable people to move out of social housing,’ said Mrs Beecroft, adding it would also mean they could purchase property outside of the first-time buyer list.
Mrs Beecroft accepted Mr Robertshaw’s amendment and the motion, as amended, was voted through unanimously.
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Thursday 23 February 2012
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Comments
There are 13 comments to this article
Page 1 of 1
666advocate
Saturday, January 21, 2012 at 04:45 PMWOC, then its Robertshaw who'll need to provide the answers and solutions and do all the work. When he sees its a non-starter they'll make it his fault. You can't look past them - they spout so much lazy rubbish anything half decent they say gets lost in the white noise.
Worthy of Comment
Saturday, January 21, 2012 at 03:32 PMDevilsadvocate please forget thinking about Beecroft and Karran and expand on your thoughts as they may assist Mr Robertshaw as he seems to be having some thoughts on the proposal.
666advocate
Saturday, January 21, 2012 at 01:54 PMtypical big mouth empty LVP policy based on Karran's fathers experience of 30 years ago - these noisy people need to justify themselves - what's the demand, in what areas and based on that - what's the 10 year cost? Why only over 40's in Local Authority housing, why exclude those renting in private sector? I could go on (and on and on) but I'd spoil my weekend thinking about Beecroft and Karran.
DP
Saturday, January 21, 2012 at 12:20 PMLimpet, in relation to the private rental market I have been told by a friend, who is the rental manager for one of the larger etstae agents on the Island, that currently the supply of properties to rent is significantly outstripping the demand for them. This is leading to a marked reduction in the cost of renting. Possibly this is down, at least in part, to people having difficulty selling houses and therefore in parallel adding to rental supply by seeing if they can rent them out. This is a good time to require those higher earners still living in social housing to move into the private sector to make way for those who have greater needs than they have. Would this be a more sensible policy for politicians, including LV, to be promoting at present? Minimal cost to the taxpayer and zero risk. I wonder what Ms Beecroft's position is on this? In this age of electronic communication she could possibly let us all know!
limpet
Saturday, January 21, 2012 at 10:20 AMI think encouraging ownership or shared ownership of homes is extremely inappropriate for an island such as the Isle of Man. Workers need to be able to move to where their work is, and as the current owners of the many properties sat for for lengthy periods seeking a buyer are finding out, it is difficult to attract a buyer if you are unwilling to be realistic about your price, and few are willing to lock themselves in to a long term financial commitment. Improving the rental market however is appropriate as if work moves off island, then your financial commitment is limited to the length of your remaining lease. The flexibility is not limited to that of ease of moving onto or off the island, but as personal circumstances change (families grow, shrink, or relationships break down) the home can more easily be changed to suit.
DELL2
Friday, January 20, 2012 at 11:11 PMWillow 15,love it,well said.
Geoff - Douglas
Friday, January 20, 2012 at 09:29 PMWhen will Libvan understand that not everyone wants to own their own house? I do wish they would stop coming out with grand schemes that grabs the headlines but have absolutely no chance of coming to fruition. By the way is Zac allowed to ask a question these days or is he heading in the direction of other elected members who have deserted the party?
RevolutionNotEvolution
Friday, January 20, 2012 at 07:36 PMThere is a severe problem with this proposal. If there is a supply of money,a known amount,the prices of houses will simply increase to compensate. The housing market will be artificially inflated. Those who do not qualify for the joint equity program will have an even harder time trying to find the money to buy. The problem will be worsened for those in the middle.The housing supply runs very much like a cartel. A limited controlled supply,limited holders of land,limited holders of properties. I own my own shoebox,but cant afford anything bigger,earn too much for social housing - STUCK. Solution is VERY simple,open the Island right up to UK builders. Increased competition,less problems with substandard materials,modern designs.Cheaper prices. Our houses are priced on a par with central London,now why do you think that might be ? ...here's a clue..G R E E D.
fallon
Friday, January 20, 2012 at 07:12 PMAs I mentioned on another thread, can you honestly see people over 50 wanting to move from their cheap housing so that they can pay more on a mortgage, and pay for all repairs? Yes maybe some but cynical old me thinks very few. I know of people over 40 who could save for a deposit and still get a mortgage, after all they have 25 years tof employment o pay it back, but choose not to because it would mean giving up their lifestyle of holidays and new cars. I would not like to see taxpayers money used to prop up these people but would like to see a fairer system when it comes to social housing such as means testing and freeing up houses for young people who simply can not afford private rents or to save for a mortgage deposit.
Phil.T
Friday, January 20, 2012 at 06:37 PMIt's a half-cocked, not thought through financially or socially, idea!
haltby
Friday, January 20, 2012 at 06:15 PMpara bellum I think I would rather have input from Kate Beecroft than absolutely nothing for the past five years from some I could name.
DP
Friday, January 20, 2012 at 01:57 PMPara bellum I think this is one where the approach should be festina lente. In principle it sounds a good idea. However there are issues of market conditions and funding that are not addressed above or in the Liberal Vannin website. Firstly a great deal of care needs to be taken that a 'part equity' scheme does not allow today's depressed housing market conditions to be by-passed by builders and developers. The construction sector is saying that demand is very low and that it needs the government to prevent it from sinking. This should mean that prices for new build houses will be significantly lower than they were at the peak of the market. How will Kate Beecrot ensure that this is fully reflected in prices being demanded by developers for 'part equity' housing? Secondly who provides the tranche of funding not provided by the individual wanting to buy a property - banks or the government-taxpayer? And how is risk managed if that money comes from the public purse? Would the scheme be bank financed with the risk underwritten by the taxpayer? In that case would the interst charges made by banks be lower to reflect the quality of the lending? Liberal Vannin has a scheme of opening up much more of the countryide for hacienda style development to pay for the scheme. But how much taxpayer owned land is there that can be used for this? How much money could be raised and how quickly? Also, given the current excess of supply of top end property over the demand for the same what is the sense in adding to the supply? I am not saying that a part equity scheme is unworkable. But Kate Beecroft, as you say, comes up with lots of ideas but little detail. What we want is not political rhetoric, which she seems good at, but sound, well costed, low risk and well evaluated commercial proposals that reflect the realities of a housing market in the doldrums (or worse). Mr Robertshaw might want to take note.
para bellum
Friday, January 20, 2012 at 12:07 PMHow many proposals is this woman going to make before actually following one through to the end? Every couple of days she is in the news proposing this or that. Don't get me wrong some are good, but she seems to lack any direction or focus at all.
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