Property The UK government gave away cheap money for property purchase deposits, which the wealthy abused, driving up property prices and leaving UK taxpayers exposed

Property The UK government gave away cheap money for property purchase deposits, which the wealthy abused, driving up property prices and leaving UK taxpayers exposed

Property In 2013, the UK coalition government of David Cameron's Tories and the Libdems' Nick Clegg launched a "Help to Buy" scheme that gave in

Property WeWork’s value plunged more than 80% to below $5 billion last quarter, SoftBank says. Here’s why that’s a staggering drop
Property A tropical storm again, Narda soaks Mexico’s Mazatlan
Property Ring Camera Surveillance Is Transforming Suburban Life


In 2013, the UK coalition government of David Cameron’s Tories and the Libdems’ Nick Clegg launched a “Help to Buy” scheme that gave incredibly cheap, taxpayer subsidised loans to first-time homebuyers, who got their money interest free for five years and thereafter had to repay it at 1.75% interest.

Now, six years and billions of pounds later, the National Audit Office has published its report on the scheme, revealing that 63% of those who got free government money actually needed it to buy a house (4% of those who got the loans were on incomes of more than £100,000/year), and the net effect of flushing all these billions into the housing market was to massively drive up the cost of housing — home prices in the UK have risen by an inflation-adjusted 35% since the programme went into effect.

Some of the abuses of the programme by the wealthy are just jaw-dropping: for example, in 2016 the Conservative MP Peter Bone bought a new house with a subsidised £35,000 loan that he took out in his wife’s name.

This has all been great for developers, who have funneled much of the gains from the rise in new home buyers into their pockets, but it’s a potential disaster for the exchequer.

Now that the housing prices in the UK have been driven up, and now that the British taxpayer has issued billions in loans for these inflated properties, the national treasury is in line to lose billions of housing prices decline and borrowers start defaulting — say, if the British economy is destroyed by a precipitous, ill-planned move to leave the EU.

Through the scheme, the government has so far issued around 211,000 loans worth £11.7 billion ($14.8 billion) to home buyers. According to the NAO, this has helped increase sales of new-build properties from 61,357 a year in 2013-14 to 104,245 a year in 2017-18. That, in turn, has helped fuel a spike in profits for the UK’s biggest home builders. The nine largest builders dished out £2.3 billion in dividends in their most recent financial year, 39 times greater than the £53 million they paid out in 2012, a year before the scheme was introduced.

The NAO estimates that over the last six years, about 40% of all new-build properties have been bought by buyers using the scheme. This has not only helped to line the pockets of large home builders and banks, it has also transformed the UK government into a major player in the UK housing market.

UK Government Blew Billions on “Help to Buy” Scheme that Enriched Home Builders and Drove Up Home Prices. Taxpayers on the Hook When Prices Sink, New Report Warns [Don Quijones/Wolf Street]

(via Naked Capitalism)

Maine’s new ISP privacy law has both California and New York beat

The Great State of Maine, having jettisoned its far-right lunatic “government” and replaced it with a responsive, progressive, evidence-based one, is now set to pass the nation’s most stringent ISP privacy law, going further than both New York and California. READ THE REST

Facebook execs are worried that Zuck’s emails show he never took his FTC privacy obligations seriously

In 2012, Facebook settled an FTC privacy investigation by promising a host of privacy protections (that they never delivered on); now, the FTC is probing Facebook’s noncompliance and they’ve demanded that the company let them look at Zuck’s email, which prompted the company’s legal team to have a look therein, and they really didn’t like […] READ THE REST

Chrome-derived browsers threaten to fork from Google, refuse to eliminate ad-blocker features

Google’s decision to restrict access to the Chrome API needed for full ad-blocking to paid enterprise customers was especially worrisome because Chrome’s free/open derivative, Chromium, is the basis for many other browsers, including Microsoft’s Edge, as well as Opera and the privacy-focused Brave. READ THE REST

This 3D printer for kids can help them invent and build their own toys

With the quick-fix appeal of video games and their own cell phones, it can be tough to keep kids focused on supposedly “educational” toys. And while it may seem counter-intuitive to fight tech with more tech, we’re all in when it comes to the Toybox 3D Printer. We’re not sure if anyone had envisioned a […]

Save almost 50% off this affordable alternative to Photoshop and Lightroom

Whether you’re an artist, designer or just organizing a photo album, photo editing software is a must. And software designers know it: Platforms like Photoshop and Lightroom have a ton of helpful features, but you’ll pay for them in spades. Luckily, there’s some competition in the photo editing arena. Right now, Skylum’s Luminar software is […]

10 deals too good to miss out on from TVs to CBD gummies

Who needs a holiday sale? Sometimes there’s no better time than the thick of summer to find deals. We should know – we’ve found ten deep discounts on some must-have items. Whether you’re searching for CBD edibles, exercise gear, chargers or other tech, take a look. But don’t look long – these prices aren’t likely […]

Read More