Barratt and the shared equity sell off

Barratt depends on shared equity for around 25% of its sales.
This is interesting to know when you realise that they’re looking at selling off that part of their loan book.

Shared equity is a horrible idea! It’s propped up house prices for many years now and will continue to do so whilst it’s supported by these idiotic schemes.

It makes a mockery of trying to help someone by offering to let them buy a share of a property they can’t afford. Whilst some people might be able to staircase the whole thing is going to start hurting sooner or later.
On various forums there are horror stories about low valuations meaning people are struggling to sell their SE home.

Why would you buy 25% of something and volunteer to pay for repairs on the whole 100%? Even to the most simply person that should strike them as unfair. But swathes of people have been convinced that this is their only chance to get on the property ladder.

The worrying idea of bundling up of mortgage debts and playing financial pass the parcel with them is strongly reminiscant of the sub-prime bundle selling that happened in the recent past. Has no one learnt anything from the financial disaster still unfurling?

Debt is bad. Encouraging poor people to get into debt is bad. Selling that debt on to someone else is bad.

Let’s just be honest and say that house prices are overinflated and until they come down to sensible levels, some people shouldn’t buy a house.

The telegraph has a story about how first time buyers are at an all time low – one can only hope it’s because they have realised house prices are unafforable and that the shared equity schemes are a bad financial decision.

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