MSE News: Halifax: house prices up for third successive month

StevieJ

Thrugelmir wrote: »

The issues surrounding the UK housing market are well documented and most certainly UK specific. Fundamentally a lack of regulatory control over banks and other lenders. With better controls in place the UK economy might be better placed to face the global downturn currently.

Good job the Tories were not in power then because they were in favour of reducing contriols.

Mr Redwood's group also sees "no need to continue" to regulate mortgage provision, saying it is the lender, not the client, who takes the risk. :eek:

Mr Cameron is believed to be fully behind Mr Redwood's programme


http://www.telegraph.co.uk/news/uknews/1560100/Tories-plan-14bn-cuts-to-red-tape.html

Thrugelmir

StevieJ wrote: »

Good job the Tories were not in power then because they were in favour of reducing contriols.

Mr Redwood's group also sees "no need to continue" to regulate mortgage provision, saying it is the lender, not the client, who takes the risk. :eek:

Mr Cameron is believed to be fully behind Mr Redwood's programme


http://www.telegraph.co.uk/news/uknews/1560100/Tories-plan-14bn-cuts-to-red-tape.html

I try and avoid making points political.

Banking regulation is a far wider issue than merely the lender taking the risk for mortgage provision.

stonethrower

Originally Posted by mitchaa
Are people still losing their jobs, having their hours cut and being asked to take pay drops?

http://news.bbc.co.uk/1/hi/business/8293536.stm

mewbie_2

stonethrower wrote: »

Originally Posted by mitchaa
Are people still losing their jobs, having their hours cut and being asked to take pay drops?

http://news.bbc.co.uk/1/hi/business/8293536.stm

You'd think someone who works with helicopters would have half a clue about what is happening in the air industry. None so blind as those who will not see.

Cannon_Fodder

mitchaa wrote: »

Are people still losing their jobs, having their hours cut and being asked to take pay drops?...

Upto 10% of Shell to go; http://www.guardian.co.uk/business/2009/sep/04/shell-oil-job-losses

U.S. jobless rose faster than expected last month, and the UK is supposed to lag their recovery; http://www.guardian.co.uk/business/2009/oct/02/us-unemployment-figures-job-losses

A snapshot of recent redundancies;
http://www.personneltoday.com/articles/2009/10/06/48935/redundancy-tracker-uk-job-losses-and-job-cuts.html


Its difficult to see anything, with your head in the sand.

nollag2006

This to me has to be the most significant part of the report...

"* The proportion of disposable earnings devoted to mortgage
payments has fallen significantly over the past two years.
Nationally, typical mortgage payments for a new borrower
have fallen from a peak of 48% of average disposable
earnings in 2007 Quarter 3 to 30% in 2009 Quarter 3. This
key measure of affordability is at a more favourable level
than the average over the past 25 years (37%) and has been a
major factor pushing up housing demand. "

It drives a coach and horses through the usual bear claptrap about affordability.

With BOE interest rates low, and not likely to rise anytime soon due to an inflation rate of 1.6%, I think we could be in for a long rise back up again.

Yippee !!!

julieq

Thrugelmir wrote: »

The issues surrounding the UK housing market are well documented and most certainly UK specific. Fundamentally a lack of regulatory control over banks and other lenders. With better controls in place the UK economy might be better placed to face the global downturn currently.

That's a very narrow view though. You miss the other side of the issues which is the extreme difficulty of building new homes in this UK because of the planning process, and the desirability of living here because it's an English speaking country in the first world with a temperate climate. That's what feeds demand. There wasn't really excessive lending, I believe 3.5 salary was the maximum loan at any time during the boom.

And to be honest we're not badly placed to ride out the global downturn, because we have a floating currency. This may have been a nasty recession, but it's hardly been devastating.

the_ash_and_the_oak

nollag2006 wrote: »

This to me has to be the most significant part of the report...

"* The proportion of disposable earnings devoted to mortgage
payments has fallen significantly over the past two years.
Nationally, typical mortgage payments for a new borrower
have fallen from a peak of 48% of average disposable
earnings in 2007 Quarter 3 to 30% in 2009 Quarter 3. This
key measure of affordability is at a more favourable level
than the average over the past 25 years (37%) and has been a
major factor pushing up housing demand. "

It drives a coach and horses through the usual bear claptrap about affordability.

With BOE interest rates low, and not likely to rise anytime soon due to an inflation rate of 1.6%, I think we could be in for a long rise back up again.

Yippee !!!

While I agree with this hasn't a big difference between Q307 and Q309 been a removal of credit away from people who can't afford it?

Someone pushed up that thing about HSBCs 3.5xsalary at 90% LTV being available. This is affordable lending imo (and kind of a contrast to what was being thrown around a few years ago) - this is necessarily going to take up a smaller proportion of a salary isn't it?

Definitely good news imo

the_ash_and_the_oak

julieq wrote: »

There wasn't really excessive lending, I believe 3.5 salary was the maximum loan at any time during the boom.

.

Is this true?!

mr_fishbulb

the_ash_and_the_oak wrote: »

Is this true?!

I doubt it. Otherwise how can the prices rise disproportionately to pay?