Politics

[Christmas Tree 4709]

Nitpicked? You mean thought through?

 

You complain that there's no new builds near you but the point I am making was that if the scheme were restricted to new builds then there would be increased demand for these houses which would likely result in increased supply so you would see more new builds near you. The construction industry is much more important to the economy than the businesses of removal companies and DFS.

Not everywhere has the potential for new builds. I'm surrounded by green belt.

 

A lot of new builds are also years in planning etc. this is an instant shot in the arm to the economy.

[PaddockLad 17124]

The thing for me is the tories using public money to interfere with a market. It appears that is the only big idea they have to stimulate the economy. If they were still in opposition they'd be screaming blue murder at state intervention in private housing costs. Add to that the very strong possibility of a housing bubble being created just to go pop again in a few years when some other part of the global market goes tits up as it inevitably will then what we have is a perfect storm of ignornance, short-sightedness and hypocrisy. Its fuckin laughable.

[ewerk 30368]

Is it open to buy to let? I dont think it is.

 

Try not to think of the scheme as anything more than helping 95% LTV people get 80% LTV rates for a fee. i.e. 2.9% instead of 4.99%

 

Also wrong, those applying for mortgages under the scheme will not be eligible for the same rates as those able to provide the full deposit themselves.

[ewerk 30368]

The thing for me is the tories using public money to interfere with a market. It appears that is the only big idea they have to stimulate the economy. If they were still in opposition they'd be screaming blue murder at state intervention in private housing costs. Add to that the very strong possibility of a housing bubble being created just to go pop again in a few years when some other part of the global market goes tits up as it inevitably will then what we have is a perfect storm of ignornance, short-sightedness and hypocrisy. Its fuckin laughable.

 

Rising house prices mean a happier electorate. Not necessarily a better off electorate but people seem to believe that things are a bit rosier when they're told that their house is worth more than it was last year.

[Christmas Tree 4709]

The thing for me is the tories using public money to interfere with a market. It appears that is the only big idea they have to stimulate the economy. If they were still in opposition they'd be screaming blue murder at state intervention in private housing costs. Add to that the very strong possibility of a housing bubble being created just to go pop again in a few years when some other part of the global market goes tits up as it inevitably will then what we have is a perfect storm of ignornance, short-sightedness and hypocrisy. Its fuckin laughable.

One of your less sensible posts.

 

The Government is basically acting as a guarantor and not costing the taxpayer anything.

 

As for governments interfering with markets with public money....... Buying banks? Subsidising car purchases? Ring a bell?

 

Hardly also the only idea given we have record levels of employment and record exports.

 

The UK housing market hasn't gone pop and is unlikely to do so.

[ewerk 30368]

 

The Government is basically acting as a guarantor and not costing the taxpayer anything.

 

 

They're actually going to make money out of it if it goes according to plan.

[Christmas Tree 4709]

Good stuff

[PaddockLad 17124]

One of your less sensible posts.

 

The Government is basically acting as a guarantor and not costing the taxpayer anything.

 

As for governments interfering with markets with public money....... Buying banks? Subsidising car purchases? Ring a bell?

 

Hardly also the only idea given we have record levels of employment and record exports.

 

The UK housing market hasn't gone pop and is unlikely to do so.

 

The government is interfearing with the housing market, my point is if Labour were doing it theyd be howling at the moon. The promise to bail out any bad debts costs nowt at the moment. We'll see how that looks at the time of the next election. The last government took the lead in bailing the planet out with public money, you misunderstand me if you think I'm claiming that its something Labour would never do. Its just something that if Labour had come up with it there would be tory mps yelling "interfearance!" across the commons. The UK housing market did go pop in 2008 because its linked to every other market and continues to be to this day.

[BigWalrus 0]

A rampant housing market helps boost the the economy whether that's estate agent, removal companies, new sofas, painters and decorators, stamp duty etc etc. There's also lots of places where people want to buy but there are no new builds. Where I live there's none. Everything shouldn't be nitpicked to death. It's just a good idea.

 

 

Link is the wrong way round. A rampant, growing economy helps boost the housing market. The biggest driver of growth in house prices is a growing economy, not the other way round.

[Christmas Tree 4709]

The government is interfearing with the housing market, my point is if Labour were doing it theyd be howling at the moon. The promise to bail out any bad debts costs nowt at the moment. We'll see how that looks at the time of the next election. The last government took the lead in bailing the planet out with public money, you misunderstand me if you think I'm claiming that its something Labour would never do. Its just something that if Labour had come up with it there would be tory mps yelling "interfearance!" across the commons. The UK housing market did go pop in 2008 because its linked to every other market and continues to be to this day.

The housing market did not go pop. Banks stopped lending.

 

Property is as popular as ever and always will be as is its a dwindling commodity.

 

Look at any graph and you will see it was the lack of availability to purchase not a desire to purchase.

 

Both labour and Coalition have tried getting the banks to lend properly but they won't, which is why this plan is potentially such a good one.

 

The world was fucked up by banks gambling in foreign debt markets they didn't quite understand. The over reaction to lending both, personal and business in this country has been shocking since.

 

[Christmas Tree 4709]

 

Link is the wrong way round. A rampant, growing economy helps boost the housing market. The biggest driver of growth in house prices is a growing economy, not the other way round.

Well without getting into economist tit for tat posting, the point is as the country recovers, a scheme like which will help increase retail sales, jobs etc is good, not bad.

[Dr Gloom 21846]

a debt driven recovery - brilliant

[Dr Gloom 21846]

 

Rising house prices mean a happier electorate. Not necessarily a better off electorate but people seem to believe that things are a bit rosier when they're told that their house is worth more than it was last year.

 

i can think of a lot of people that are squeezed out of the market, despite earning a good wage, that would disagree.

 

this policy is basically helping to prop up an inflated housing market, which when you look at the fundamentals of average property prices versus average wage, just doesn't make sense.

 

good read here from the ft

 

 

 

There’s no point trying to live in London

 

Property fetishism pervades Britain and buyers are becoming more neurotic, says Christian Oliver

 

This was the week I decided to emigrate to the Swedish countryside.

It was last Saturday that finally broke me. I found myself shuffling, crab-like, around the 12 other people viewing a bijou two-bedroom house in Bromley. Crammed into the main bedroom, some of us smiled at each other in silent solidarity as we tried to determine whether we could sleep through the growl of southeast London traffic from the main road some 15 feet from the front door.

Outside in the drizzle, I suspiciously examined the outlet pipe from the boiler, scrappily bandaged with foam and duct tape. The owner explained that this would stop the system cutting out when it freezes. I never dreamt that I could worry so much about boilers.

 

Initially, I thought that I could read the other young viewers, all probably first-time buyers like me. Surely they would need a night to agonise about whether they could make an offer.

 

Not a bit of it: suddenly, it was as if bloody bucketfuls of chum had been cast into the shark tank. Couples were huddling on the stairs and in the driveway to confer about their offers. The chirpy estate agent warned me that three people had pledged to offer the asking price. Figuring that I was watching a rerun of the South Sea Bubble, I sloped back into the rain to buy a packet of consolatory crisps.

 

I wish the prime minister had been there to witness the frenzy. David Cameron says he is trying to make life easier for first-time buyers by bringing forward the second raft of his Help to Buy policies to Monday. But my experience over the past few months is that we haggard first-timers are becoming more neurotic and competitive as steroids are being injected into the market. Essentially, you have to rush to get an offer in now before prices become even more astronomic.

 

After nine years as a foreign correspondent, I returned to Britain 18 months ago, looking forward to settling down with my wife and baby. To beat exorbitant rents, it could only make sense to buy. It was a bit worrying that I was 35. By that sort of age, my parents’ generation had managed to secure their handsome three-bedroom houses for £60,000 in the 1980s.

 

But the average first-time buyer is now 35, up from 24 in the 1960s and 28 in the 1980s, according to the Post Office. Most of us have admittedly had some help to buy. In my case, I had my years as an expatriate, squirrelling away a deposit. Relatives also help out.

The worst thing about coming back was finding that property fetishism now pervades British life, gnawing at your sense of guilt for not having found a place but deepening your suspicion that this is a world turned upside down.

The mismatch between prices and salaries is surely lunacy but the headlines put a gun to your head, warning of the havoc that Help to Buy policies will wreak. The average London house price will rise 44 per cent by 2018 to a dizzying £566,000, according to the Centre for Economics and Business Research. So, if I don’t hurry, my savings won’t even stretch to a deposit. Channel 4 has extended Location, Location, Location – a voyeuristic house-hunting show – to an hour from 30 minutes, understanding that property has become our nation’s unrivalled bread and circuses.

 

My search has taken me to places I had never heard of: Carshalton, Shooter’s Hill and Petts Wood. Talking to the neighbours sometimes scotched my hopes. I heard many outré tales of suburbia: a Vietnamese drug baron nearby, a gunman shooting pets and packs of kids hurling bricks at buses. One fine house was rendered unsaleable by the insistent stench of parrots.

 

But despite all of these drawbacks, big bids were still flowing in. In many cases, I found that a good school nearby would propel the bids into fantasy territory as parents prepare for the consequences of our baby boom. Many sellers warn that churches have registers of mass attendance to choose which parents are more deserving of school places, keeping tallies of the most devout. It all seems thoroughly unholy.

 

It was my wife, reared on Astrid Lindgren’s children’s books, who said that I had been pummelled enough by unhappy house hunts and that we should flee to Sweden. She had been alerted to a website encouraging people to live in Lonneberga, home to Lindgren’s endearing prankster Emil. Beautiful airy villas, nestled among pines and lakes, seemed to fetch about €40,000. And there were no pathetic, patched-up combi boilers to worry about. Each house had a pannrum – a robust control room with a boiler like a U-boat engine, covered in hatches and dials. It took about four minutes to convince me that it made more sense to raise a child in Smaland than Eltham. I have now spent a week indulging in fantasies about a bracing Nordic lifestyle that will rid me of London’s miasma and allow me to retreat, Thoreau-like, into the wilderness. House viewings have this effect.

 

So, I’m out of here. Not immediately, alas, to Lonneberga. Defeated as an aspirant first-time buyer, I am preparing to return to foreign correspondent work. If, after a few more years in the field, average house prices in London really have hit £566,000, then I am faced with the sobering prospect that there is no point even trying to come home. I had better start working on my Swedish.

 

The writer is the FT’s deputy analysis editor – until he escapes London

 

Edited October 7, 2013 by Dr Gloom

[Phil 6]

 

Also wrong, those applying for mortgages under the scheme will not be eligible for the same rates as those able to provide the full deposit themselves.

 

Making more claims withput proving any evidence Mr Troll.

 

You need to let Ant know your browser doesn't let you post links.

 

 

Under the new mortgage guarantee scheme, the buyer would only need a 5 per cent deposit.

 

The government and the bank then jointly guarantees up to the next 15 per cent of the property’s value, in return for a fee paid for by the lender

 

https://www.gov.uk/government/news/help-to-buy-mortgage-guarantee-available-3-months-early

[desmondTUTU 0]

a debt driven recovery - brilliant

gloom

[desmondTUTU 0]

For your own life's enjoyment- your kids should look after themselves after you give them a decent start rather than them looking forward to your death.

 

I don't think you would say that if you worked all your life to give your children something when you die.

 

Say's alot about you really, yes my grammer is shit but i know how to put a shift in.

[Dr Gloom 21846]

gloom

 

a recovery built on sound fundamentals would be welcome.

[desmondTUTU 0]

 

a recovery built on sound fundamentals would be welcome.

your the doctor

[ewerk 30368]

 

Making more claims withput proving any evidence Mr Troll.

 

You need to let Ant know your browser doesn't let you post links.

 

 

 

https://www.gov.uk/government/news/help-to-buy-mortgage-guarantee-available-3-months-early

 

You really are a fucking spastic. The government's guarantee isn't free, they charge the bank approx. 0.9% of the total value of the mortgage. They also don't guarantee the entire 20%, they also only guarantee it for 7 years. All of this means more risk and more cost to the bank so they will not be eligible for the same rates as those with a 25% cash deposit.

 

Idiot.

[Phil 6]

You really are a fucking spastic. The government's guarantee isn't free, they charge the bank approx. 0.9% of the total value of the mortgage. They also don't guarantee the entire 20%, they also only guarantee it for 7 years. All of this means more risk and more cost to the bank so they will not be eligible for the same rates as those with a 25% cash deposit.

 

Idiot.

Post links to back up your wild claims you fucking mong!

[Phil 6]

same rates as those with a 25% cash deposit.

Actually dont bother. You're clearly a fucking mong that doesnt know his arse from his elbow trying to be a smart arse.

 

I might not agree with Renton, Padlock and Sweetleftpeg, but at least I respect them.

[desmondTUTU 0]

financial handbags at dawn

[ewerk 30368]

Post links to back up your wild claims you fucking mong!

These are the facts. Prove me wrong, hunny.

[Phil 6]

These are the facts. Prove me wrong, hunny.

Without a link, they are hearsay

[ewerk 30368]