Cameron blames lenders for weak UK housing market

drc

The UK housing market is akin to a drug addict whose addiction has got to the stage whereby he knows the drugs are bad for him, have destroyed his body and he doesn't actually want to be a druggie anymore but he needs to keep taking them because cold turkey would kill him. The government know this. The problem is that allowing the housing market to collapse would cause the economy to hemorrhage, so they maintain the "devil" of the status quo.

Thrugelmir

Really2 wrote: »

A 5% or 10% deposit at 4.5X income was never a problem, but I dare say you think that is easy credit.

It was a problem in that the banks didn't have sufficent capital to support this level of funding. Everybody wanted to borrow, but no one was saving for a mortgage. Traditionally building societies operated on the basis that it took around 25 savings accounts to fund a single mortgage. Banks are no longer creating money. The noose is being tightened around fractional reserve banking. Diminishing banks ability to lend.

FATBALLZ

David Cameron said high-street lenders were being too cautious and were preventing the housing market from progressing.

The market will progress regardless of what lenders are doing.

ILW

What do you mean by progressing?

ninky_2

Thrugelmir wrote: »

An easy way to deflect news attention away from Milliband. Nothing of substance in the story just a view by Cameron.

in case you hadn't noticed, milliband isn't running the country.

ILW

ninky wrote: »

in case you hadn't noticed, milliband isn't running the country.

Or anything else.

Thrugelmir

ninky wrote: »

in case you hadn't noticed, milliband isn't running the country.

But has been pro-actively making himself visible in the media.

Trying to spin out the VAT story.

So I guess the Tory media machine decided to get Cameron to say not a lot to change the headlines.

Just a sign of the 24 hour media circus we live in.

ninky_2

the scary thing is that this seems to be an admittance or outlook by the leader (or co-leader) of our country that the only way to invigorate our economy is through a booming housing market when that has already proved unsustainable.

why would lenders accept a 5 percent or even 10 percent deposit when the asset the loan is covered by could realistically lose that amount in value in the current climate? 100 percent and other high ltv mortgages might make sense to lenders in a booming market but not in a stagnant and / or falling one. they also run the risk of putting people into the misery of negative equity - you only have to see these boards to find what woe that leads to following unexpected job loss and/or relationship breakdown in joint mortgage situations.

considering cameron is supposed to be a free marketeer i'm surprised at this outburst against the reality of free market economics hitting the housing market.

ninky_2

Thrugelmir wrote: »

But has been pro-actively making himself visible in the media.

has he? tbh i've been a bit out of the loop as i've been on holiday overseas where the main tv options have been wall to wall karaoke-style performances in serbian and the only things of note gleaned from english news channels have been irish water shortages.

Thrugelmir

ninky wrote: »

has he? tbh i've been a bit out of the loop as i've been on holiday overseas where the main tv options have been wall to wall karaoke-style performances in serbian and the only things of note gleaned from english news channels have been irish water shortages.

Radio 2 this week. Side stepped the real issues of how the deficit should be tackled.