Help to Buy is finally being scrapped. Here’s why it was a terrible idea

Oooh, a house. Image: Getty.

Buried in last autumn’s budget announcement was the news the the government’s Help to Buy (HtB) scheme would finally wind up in 2023. Which is long overdue considering it could finish tomorrow and that still wouldn’t be soon enough.

Introduced in 2013, the scheme was one of the flagship policies of the coalition government. It was meant to get a new generation of people onto the “housing ladder” – that semi-mythical place of milk and honey where your money works for you and everyone votes Tory. But what it’s actually done is passed huge profits to developers and screwed over the very people who bought into it.

Key to the scheme was the “Equity Loan”. As long as the buyer could stump up 5 per cent of the total cost of the property as a deposit, the government would provide a loan of 20 per cent. The final 75 per cent would be reached through a conventional mortgage. But there are requirements.

One of the requirements of the HtB Equity Loans is that the home being brought is newly built. Now this of course comes with advantages – often they have ten-year warranties, built with modern materials and to modern specs.

But there is a cost for those fresh-out-the-packet homes – what’s known as the “new-build premium”. Across England and Wales new-builds command a 16 per cent higher price than comparable properties in the area.

And just as a new car loses its value when it’s driven out the lot, once a new-build is lived in it starts to lose that premium. The average new-build loses around half its premium when it is sold for the first time. Suddenly the bottom rung of the ladder doesn’t seem so sturdy.


Another requirement of the scheme is that the property being bought is from “a registered Help to Buy builder”. This has the even more perverse effect of adding another premium onto the price that the first-time buyers are paying. A 2017 Morgan Stanley report found that builders could charge an extra 5 per cent for the properties sold through the scheme.

So between the new-build premium and the Help to Buy premium, the latter of which evaporates on purchase, people buying through HtB are paying 21 per cent over the odds.

Now if property were guaranteed to appreciate in value at those pre-2008 levels then it would still make sense. But that’s unlikely. Some assessments are predicting a 25-35 per cent fall in house prices in the case of a no-deal Brexit. Even if this on the cynical side, you know it’s not going to be pretty.

For developers, the scheme is brilliant. They no longer need to contribute any capital to support the sale of new-builds, so there is so much less risk involved. And this means they can rake it in. In a fairly excruciating video, the CEO of Persimmon Homes (a HtB builder) refused to answer questions from a BBC journalist about a £75m bonus.

Which makes the real winners of Help to Buy those whose bonuses are being propped up at the expense of those it is meant to help – and suddenly it’s easy to see why the scheme must be scrapped. But for the 400,000 first-time buyers who have already used it, it might just turn out to be a terrible deal.

 
 
 
 

City of Ruin: On Resident Evil’s Raccoon City

Photo: Wikipedia via Creative Commons

With the release of Capcom’s remake of Resident Evil 2 on Friday 25 January, gamers will return to the terrifying streets of one of the most iconic cities in video games: the zombie-infested Raccoon City.

Despite first being mentioned in 1997’s original Resident Evil, that game took place entirely in a mansion outside the city and it wasn’t until the 1998 sequel that we actually got to explore Raccoon City itself.

Since then, it’s become a recurring location in the games series and various spin-off media, even though – and this is an unavoidable spoiler, so abandon this article now if you’re planning to go into the remake completely cold – Resident Evil 2 ends with the city being comprehensively nuked by the US government.

In fact, the series returned to Raccoon City a year later in 1999’s Resident Evil 3, an asset-reusing fill-in instalment that cleverly loops around the events and locations of Resident Evil 2 and gives the player another, more detailed look at the city’s final destruction.

Raccoon City RIP, from Resident Evil 3. The author of this piece was not allowed to have the piano theme from the credits as music at his wedding.

Since then, the 1998 fall of Raccoon City has been revisited in the two Resident Evil Outbreak titles, in the Umbrella Chronicles and Darkside Chronicles light gun Wii games, and in the shockingly mediocre online shooter Operation Raccoon City, as well as the Milla Jovovich-starring live action film series.

Although the plot line of the main game series has moved on to new locales and time periods from 2005’s Resident Evil 4 onwards, the franchise clearly left a part of itself on the streets of Raccoon City in 1998, and can’t help but repeatedly return. But why?

To answer that we need to look at what kind of games the Resident Evil series are, their genre roots and the continuity that’s built up within the games themselves – and how these elements have created an eccentric idea of an average American city.

The original Resident Evil had horror game precedents in titles like Alone in the Dark and the film adaptation, Sweet Home – even sharing a developer, Capcom, and a director, Shinji Mikami, with the latter – but it twisted these influences and precedents to create a new sub-genre: survival horror.

The survival horror genre is distinguished by the cautious, steady exploration of a contained environment, facing off against horrific creatures that constantly threaten to overpower the player, who must conserve scarce resources like ammo and health top-ups. As opposed to game genres where environments are dashed through while shooting wildly, survival horror games, and their steady pace, demand locations that reward attention.

The live action introduction to the characters in the original Resident Evil. Mysteriously this technique hasn’t been used in the series since.

The first game, called Biohazard in its native Japanese but renamed Resident Evil in English, opened with a ridiculous live-action video in which an elite team of cops – as seen in the video above – wind up in the creepy Spencer Mansion located in the Arklay Mountains near Raccoon City. There, our heroes, part of the elite and very coolly acronymic STARS team, face off against zombies and other genetically engineered monsters created as weapons by the evil Umbrella Corporation.

Player characters, Chris or Jill, move from room to room in the mansion, fighting off monsters and making progress by solving baroque puzzles where rooms are locked by mysterious keys and booby trap devices. As the plot unfolds Chris and Jill realise that they’ve been set up, acting as experimental subjects to provide data about the combat efficiency of Umbrella’s Bio-Organic Weapons, or BOWs for short.

Gameplay from the original Resident Evil. NSFW due to gore and terrible voice acting.

Although we don’t go near Raccoon City in the first game, it sets several precedents that shape the urban space encountered in the sequel. The game relies on confined spaces and environments in which the player struggles to escape a looming zombie, with doorways to pass through to move from one small area to another. As well as building tension this is a technical issue – the dramatic fixed camera angles allow the backdrops to each screen to essentially be pre-rendered still images on which animated characters and interactive items move, allowing in turn for a much higher resolution in the backgrounds than was possible for moving 3D environments at the time – which lends the world of the game a distinct, atmospheric feel, the sense of a real, detailed place.


The fiction of the game justifies the Spencer Mansion’s weird layout and complex locks partially through its use by the Umbrella Corporation as a secret laboratory and testing facility, and partially through the story of the Mansion’s eccentric architect, George Trevor, who installed all these traps and puzzles on the orders of Umbrella’s founder, Ozwell Spencer. These narratives are told through documents found around the Mansion and its grounds.

The final element here is one of genre. If you’re a Resident Evil newcomer, you may well have read the past few paragraphs and thought “this makes absolutely no sodding sense whatsoever”, and you wouldn’t be wrong. The most obvious genre precedents for the series are the zombie films of filmmaker George A Romero, but the series also takes influence from the considerably less coherent European knock offs Romero inspired, all through a lens of Japanese horror, which is far more prone to abstraction and nightmare logic as well as post-Hiroshima concerns about mutation.

These overlapping influences shaped Raccoon City itself – a city in the mid-western United States, created by Japanese game developers in the mid to late 1990s taking influence from zombie films of the 1970s and 1980s, some of which were shot in Europe. Factor in the technical and gameplay requirements, and you end up with a uniquely skewed vision of an American cityscape.

The original Resident Evil 2 opens with the zombie outbreak well underway, and protagonists Leon and Claire stranded in a Downtown area overrrun with the undead. The narrow streets are rendered narrower by crashed cars and barricades, evidence of the carnage that has occurred and failed defensive efforts. The opening scenes of the game are a hectic dash through cluttered streets and a crashed bus to get to a gun shop and the game’s first major environment, the Raccoon Police Department. Resident Evil 3 revisits Downtown and the RPD, filling in restaraunts, shopping streets, an area under construction, an electricty substation, the City Hall, a gas station and a tram station.

The unusually narrow streets of Raccoon City as seen in Resident Evil 3.

Resident Evil 3 also adds the adjacent Uptown area with warehouses, sales offices, bars and residential streets that border on tenements in their density and narrow alleys. Between the two games the ruined city is a beautiful example of stage-managed desolation, with distant screams and evidence of horrors past strewn across the cluttered chaos. It’s also ridiculous, a toytown version of a city where industrial, residential and commercial activities are piled upon each other. The George Trevor school of architectural madness is also in full effect, with the RPD building being a converted art gallery complete with doors that are opened by manipulating statues, and gates to City Hall that unlock when a clock outside is completed.

An eccentric approach to architecture and city planning is one hand wave explanation for why Raccoon City doesn’t make much sense, another within the fiction is that it’s an Umbrella Corporation company town, with their labs and facilities scattered across the city. Every business and facility can hide a lab or storage area for Umbrella. In Resident Evil 2, the sewers and a cable car trip lead to a dead factory hiding a lab facility in the Raccoon City outskirts, an underground lab revisited (or pre-visited?) in Resident Evil Zero and the Outbreak games.

In Resident Evil 3 a disastrous jaunt in a tram leads to the city hospital which hides a lab full of reptilian monstrosities, then on through the park, across a dam and into another dead factory hiding another laboratory. 

As much as anything makes sense in Raccoon City, there’s a sort of logic to seeing the city as a giant laboratory in which the local population are bred as guinea pigs, who can be snatched up and experimented upon in the individual facilities across the city. It’s a groteseque but not entirely inaccurate caricature of urban space where the masses live and die at the whim of the corporate forces who shape the city for their own purposes. The cramped urban spaces of Raccoon City, where industrial, residential, and commercial areas pile up on each other in a mass of twisty, narrow streets that are barely more than corridors, add a level of dream logic to this scenario, making for an evocative urban nightmare.

The boring, sensibly proportioned streets of Operation: Raccoon City

While the Outbreak games added new areas to Raccoon City – a zoo, a university by the sea – their adherence to the oppressively warped architecture and geography of the series made these additions of a piece with their predecessors. Other adaptations have been less successful: the Chronicles and Operation Raccoon City games turned the streets into open boxes for less contained, run-and-gun-type play, completely losing the rich detail and claustrophobia that made Raccoon City such a unique place and turning it into... well, something resembling a real city, with streets wide enough for cars and buildings with sensibly broad corridors. That nightmarish quality was entirely lost.

Hopefully the Resident Evil 2 remake released this week will, amongst all its high definition upgraded gore, retain Raccoon City’s convoluted, unrealistic geography. The story of an apocalyptic event reducing an American city, the supposed apex of Western civilisation, to carnage and despair will always have a certain perverse appeal, and the fall of Raccoon City, in all its nightmarish eccentricity, is one of the greatest iterations of that story. Long may we keep being allowed to revisit it.

Resident Evil 2 is released for PS4, XBox One and Microsoft Windows on 25 January 2019.