Hmmm, it's strange

Graham_Devon

The BBC talking about the mortgage summit today. (and I'm sure other media broadcasters are the same).

Everything was mentioned as to the problems FTB's face.

Lending was mentioned, the size of deposits were mentioned, interest rates were mentioned, inflation and also wage inflation was mentioned.

Indeed, even the price of food and living costs was given as a reason for buyers without support reaching 37 years old and why it could get harder if these prices keep on rising.

The only thing that wasn't mentioned, was house prices themselves.

I'm starting to give up...as the only solution really offered, was more shared ownership and more shared equity, to enable FTB's in their 30's to get on the ladder as people cannot afford to save large deposits.

What a bizzare situation though, when all day the media have been going on and on about how high food, oil and fuel prices harm us, yet when talking about problems with housing and how people are finding it hard to buy, the only thing not mentioned as a reason, is prices.

Turnbull2000

I warned well before the election that the Tories would heavily push shared-ownership. And here we are...

Who they Tories invited, who they excluded and the manner of the discussion must surely convince you now that there'll be no more nominal double digital falls, or that prices will return to 3-4x salary. I also note that housing supply was not discussed, as again, increased supply would bring about lower prices - the precise outcome they're determined to avoid.

Large scale BTL is here to stay, and for FTBs without wealthy parents, shared ownership or renting is the future.

Graham_Devon

Turnbull2000 wrote: »

I warned well before the election that the Tories would heavily push shared-ownership. And here we are...

Who they Tories invited, who they excluded and the manner of the discussion must surely convince you now that there'll be no more nominal double digital falls, or that prices will return to 3-4x salary.

Large scale BTL is here to stay, and for FTBs without wealthy parents, shared ownership or renting is the future.

Wasn't the tories pushing shared ownership on the TV. Didn't catch who it was, some sort of VI though.

As I said on another thread though, I am starting to lean towards your judgement that shared ownership will be heavily pushed and leaned on. That in itself though, just stores up much bigger problems....but those problems will only hit in a couple of decades, and the VI's certainly seem to think that their children and grandchildren paying is a much preferred preference to current owners seeing equity reduce.

Cleaver

Graham_Devon wrote: »

The BBC talking about the mortgage summit today. (and I'm sure other media broadcasters are the same).

Everything was mentioned as to the problems FTB's face.

Lending was mentioned, the size of deposits were mentioned, interest rates were mentioned, inflation and also wage inflation was mentioned.

Indeed, even the price of food and living costs was given as a reason for buyers without support reaching 37 years old and why it could get harder if these prices keep on rising.

The only thing that wasn't mentioned, was house prices themselves.

An interesting point. But isn't it because you can introduce policy and schemes around lending, size of deposits, interest rates etc. to make changes whereas the price of a house is pretty much down to how much people decide to buy them for? Not a lot the government can do about that really.

Turnbull2000

Graham_Devon wrote: »

Wasn't the tories pushing shared ownership on the TV. Didn't catch who it was, some sort of VI though.

Shapps himself has just been peddling mass shared-ownership on the BBC. Cameron also suggested shared-ownership on multiple occasions before the election.

With salary growth set to remained dampened for years to come, pushing so many into shared-ownership will of course leave thousands trapped and struggling to upsize. But that's a future problem.

AD9898_2

Graham_Devon wrote: »

The BBC talking about the mortgage summit today. (and I'm sure other media broadcasters are the same).

Everything was mentioned as to the problems FTB's face.

Lending was mentioned, the size of deposits were mentioned, interest rates were mentioned, inflation and also wage inflation was mentioned.

Indeed, even the price of food and living costs was given as a reason for buyers without support reaching 37 years old and why it could get harder if these prices keep on rising.

The only thing that wasn't mentioned, was house prices themselves.

I'm starting to give up...as the only solution really offered, was more shared ownership and more shared equity, to enable FTB's in their 30's to get on the ladder as people cannot afford to save large deposits.

What a bizzare situation though, when all day the media have been going on and on about how high food, oil and fuel prices harm us, yet when talking about problems with housing and how people are finding it hard to buy, the only thing not mentioned as a reason, is prices.

It's a sad situation Graham (and is reflected on this very board) that many people, as soon as they actually buy a house, whether it be with a mortgage or not do not under any circumstances want prices to fall back, even if in the long run it would be better for the country as a whole.

Some people would be in trouble for sure, but out of the 20 million homeowners, how many would be in serious trouble with a 30% drop in prices, not many I'd say. But it's all about greed and money-grabbing.

Graham_Devon

Turnbull2000 wrote: »

Shapps himself has just been peddling mass shared-ownership on the BBC. Cameron also suggested shared-ownership on multiple occasions before the election.

With salary growth set to remained dampened for years to come, pushing so many into shared-ownership will of course leave thousands trapped and struggling to upsize. But that's a future problem.

You may have seen the other bloke I was talking about then? Didn't catch who he was, and didnt catch shapps, so didnt realise he'd been pushing it.

And yes, we agree, even bigger problems than we face now, trapping people in shared ownership. But so long as people don't suffer equity loss now, it's all good I guess.

DervProf

The best part of a decade passed with fairly loose credit conditions, property investment being advertised by the mass media, and lenders getting ever more "creative" in their lending practices. While all this was going on, FTBs were encouraged to "climb aboard the boat, or you'll miss it". The credit bubble that fuelled HPI burst, and capsized the boat, which should have drowned those who took too much baggage aboard. This would have made room for FTBs to board the boat once it had been repaired, and served a valuable lesson to them to not make the same mistakes those who had overloaded themselves before. Instead, those who were carrying a large amount of baggage were thrown a lifeline, while the FTBs observed from the harbour. The boat has been righted, although it still doesn't look very seaworthy, and many that nearly drowned have been put back aboard. Now the media are calling for the FTBs at the harbour to be allowed aboard too.

Full steam ahead !

DervProf

AD9898 wrote: »

It's a sad situation Graham (and is reflected on this very board) that many people, as soon as they actually buy a house, whether it be with a mortgage or not do not under any circumstances want prices to fall back, even if in the long run it would be better for the country as a whole.

Some people would be in trouble for sure, but out of the 20 million homeowners, how many would be in serious trouble with a 30% drop in prices, not many I'd say. But it's all about greed and money-grabbing.

:T

Well said (especially the last sentence).

smeagold

Its not the borrowers their protecting, it's the banks. If(and when) house prices fall all those dodgy loans will surface. Some one recently worked out that by having 0.5% rates the tax payer has essentially funded the banks to the tune of £60 bill. The Tories biggest contributors we're the City and the new Merlin project is a fantastic windfall for the banks. The government is owned by the banks.

Kohoutek

Graham_Devon wrote: »

W
As I said on another thread though, I am starting to lean towards your judgement that shared ownership will be heavily pushed and leaned on. That in itself though, just stores up much bigger problems....

You could certainty lose a lot being in shared ownership if UK property prices actually fall significantly and global commodity prices continue their upward trend.

Those in shared ownership put in negative equity, houses/flats (other than shared ownership schemes) become more affordable/attractive to potential buyers, rent stuck at RPI. Pretty screwed...