Guardian, Shared equity=negative equity

One housing industry analyst who spoke to the Guardian anonymously agreed that HomeBuy Direct had only benefited housebuilders. He said: “The government is only interested in volume, in getting houses built, not in the prices. But the schemes distort the market and when they are removed, prices fall. Shared equity really means negative equity.”

He added: “Buyers with a better loan-to-value will be able to drive a harder bargain, but for first-time buyers it’s like driving a brand new car out of a showroom – instant negative equity.