Councils want power to offer mortgages

Generali

neverdespairgirl wrote: »

In 2006, £3000 0s 0d from 1956 was worth:

£1,780.41 using the retail price index
£54,338.09 using the GDP deflator
£133,527.87 using the average earnings
£157,619.42 using the per capita GDP
£186,575.65 using the share of GDP

FWIW, the buying power of a Pound in 1700 was much the same in 1900. Relative prices changed but the price level did not.

PS I think the first number in the list is miscalculated in some way. The RPI and GDP deflator figures should be similar as the latter is calculated using the former.

harryhound

neverdespairgirl wrote: »

Which house is that, then?

Between you, me and "Hector the inspector" answering that question might reopen a can of worms - ever had any dealing with the district valuer?:hello:

justpurchased wrote: »

Guess £500K'ish

I would say around £300k+ if it was in my locality,

Any body want another go?

Hint: up a bit, well quite a bit.

Harry.

PS I think the prize would be the glory guessing right on MSE; but I might be able to think of something appropriate for the winner at Xmas.

PPS It is looking like the government is coming up with a shared owner ship solution:

"Are you in negative equity?
Falling behind with your mortgage?
Don't despair You too can flog a percentage of your house to the local authority and we will see off that nasty blood sucking sub-prime lender".???????
Details expected next Tuesday?

Max_Headroom_3

baby_boomer wrote: »

"......In a joint letter [ to GB], [the local authorities] argue the public sector should be able to support first-time buyers and offer "new mortgage capacity" alongside private lenders, preventing a collapse in the market and restoring stability....."

Two thoughts.

If I need a mortgage I go and see a bank or a building society and they give me a mortgage. If they won't, then it is for a good reason, either they think I cannot afford the repayments or I have a bad credit history and cannot be relied upon to pay the mortgage back. So there is already provision for lending to people with good credit and ability to pay, so the only people that the council will be lending to is people with either an inability to fund the mortgage or who are unreliable in paying back. There is an expression for thisw sort of lending which is "sub prime". Do we really want our taxes to go into funding sub prime lending?

Secondly, they talk about "restoring stability". Isn't that exactly what this property price meltdown is doing? For the last few years prices have been distinctly unstable, as they've been much too high. Now they are beginning to fall back to a more affordable level where they would be more stable and the council want to try and stop this in the name of restoring stability!!

Utterly insane on both counts! :rolleyes:

wymondham

Generali wrote: »

Most modern built flats aren't built to a high enough standard to be used for social housing directly. The only way it can be is for a private LL to let it to someone on housing benefit.

That's quite shocking, but suppose I should'nt be surprised!

BMWobbleU

wymondham wrote: »

If councils start offering mortgages as well then won't this keep prices high???

Good piont, this will provide a cushion for irresponsible borrowers..... next time just load up the debt to the max., and the Council will save your a$$ :money:

lynzpower

BMWobbleU wrote: »

Good piont, this will provide a cushion for irresponsible borrowers..... next time just load up the debt to the max., and the [STRIKE]Council[/STRIKE] taxpayer will save your a$$ :money:

good point. Im even more worried.