And So It Begins.....

HAMISH_MCTAVISH

Getting the economy back on its feet will be a major theme for Cabinet ministers at the Tory conference in Manchester this week as the recovery continues to flag.

Aides said the house building plan, which comes amid criticism of the Government's attempts to boost economic growth, would support 200,000 jobs.

"The Government owns huge amounts of land, mostly brownfield sites, previously developed, either out of use or being run down in some way," Mr Cameron told The Sunday Times. "There's an enormous opportunity to build homes on those sites."

He said it was "appalling" that the average age of first-time buyers without financial support from their parents was now 37.

The Tories say that housebuilding fell to its lowest peacetime rate since 1924 under the last Labour government.

"This is a market that isn't working. Lenders won't lend, so buyers can't buy, and builders can't build," Mr Cameron said. "I believe we've got to get in there and help sort it out. I want people to have the chance to own their own home. This is a creative way of getting those homes built. I think it can make a big difference."

David "call me Dave" Cameron has finally figured it out.

You can't have a healthy economy without a healthy housing market.

And if lenders won't lend, buyers can't buy, and the housing crisis will worsen.

So he's decided to advance some land to the builders, which they don't have to pay for til the houses sell.

Now all he has to do is get the banks lending again, so buyers can buy. Probably no coincidence the CBI just called for the Govt to offer Mortgage Indemnity Insurance for 95% LTV loans then.

This is all going to take a year or two to pull together, but mark my words a housing market recovery is being engineered in time for the wider economy to recover before the next election.;)

The clock is running out on the bears......

Tick Tock, Tick Tock, Tick Tock.......:)

Graham_Devon

HAMISH_MCTAVISH wrote: »

David "call me Dave" Cameron has finally figured it out.

You can't have a healthy economy without a healthy housing market.

And if lenders won't lend, buyers can't buy, and the housing crisis will worsen.

So he's decided to advance some land to the builders, which they don't have to pay for til the houses sell.

Now all he has to do is get the banks lending again, so buyers can buy. Probably no coincidence the CBI just called for the Govt to offer Mortgage Indemnity Insurance for 95% LTV loans then.

This is all going to take a year or two to pull together, but mark my words a housing market recovery is being engineered in time for the wider economy to recover before the next election.;)

The clock is running out on the bears......

Tick Tock, Tick Tock, Tick Tock.......:)

Shame Hamish hasn't worked out you can't fix this problem by tinkering.

Anyway, why is the clock running out for the bears? You constantly state that the only way for house prices to fall is to build more homes. This builds more homes.

You are disagreeing with yourself again.

myhouse_2

The bears arguments are based on essential price reductions, not reduced volumes. While the above should put some more houses on the market, and may increase volumes, I don't see that it changes the "fact" that prices need to come down.
I definitely don't believe the government should be putting in taxpayers money to encourage 95% lending in a falling market - it exposes the taxpayers to potentially large losses.
More likely what we'll see is various small government plans that make it look like they're doing something while having very little actual effect. I'm sure you'd agree that there are a few of those plans in place already.

Graham_Devon

Lending to buyers didn't work. Lending to builders won't work either.

Why? People simply cannot afford the prices.

It really is simple.

MacMickster

I vaguely recall from only a few days ago that developers are sitting on large banks of land that they have already paid for, so I fail to see why providing more land will persuade them to build.

Also, it was argued that these unused land banks were maintaining a shortage of housing and hence propping up house prices. More supply will surely lead to lower demand and prices.

ILW

Back to the idea of taxing the acres of undeveloped land already owned by builders and speculators.

Losing_the_way

Graham_Devon wrote: »

Lending to buyers didn't work. Lending to builders won't work either.

Why? People simply cannot afford the prices.

It really is simple.

Or salaries move forward to meet the market, thus restoring much needed volume.

Rinoa

Graham_Devon wrote: »

Lending to buyers didn't work. Lending to builders won't work either.

Why? People simply cannot afford the prices.

It really is simple.

Of course they can afford the prices. They're paying as much in rent as they would for a mortgage. It's the deposits that stop people buying.

ILW

Losing_the_way wrote: »

Or salaries move forward to meet the market, thus restoring much needed volume.

Think that is called an inflationary spiral, tends to cause much bigger problems.

DVardysShadow

HAMISH_MCTAVISH wrote: »

David "call me Dave" Cameron has finally figured it out.

You can't have a healthy economy without a healthy housing market.


.....

This is all going to take a year or two to pull together, but mark my words a housing market recovery is being engineered in time for the wider economy to recover before the next election.

The clock is running out on the bears......

Tick Tock, Tick Tock, Tick Tock.......:)

Hmm. The cure for anorexia is bulimia, the cure for bulimea is anorexia.

Healthy does not come into it for the economy or for the housing market. They are always on a diet of unlimited creamcakes or strictly rationed bread and dripping. This will be no different.

Jimmy_31

HAMISH_MCTAVISH wrote: »

David "call me Dave" Cameron has finally figured it out.

You can't have a healthy economy without a healthy housing market.

And if lenders won't lend, buyers can't buy, and the housing crisis will worsen.

So he's decided to advance some land to the builders, which they don't have to pay for til the houses sell.

Now all he has to do is get the banks lending again, so buyers can buy. Probably no coincidence the CBI just called for the Govt to offer Mortgage Indemnity Insurance for 95% LTV loans then.

This is all going to take a year or two to pull together, but mark my words a housing market recovery is being engineered in time for the wider economy to recover before the next election.;)

The clock is running out on the bears......

Tick Tock, Tick Tock, Tick Tock.......:)

If these new houses are priced anything like the ones on the current government homebuy scheme then i cant see anything changing.

Also, hamish could you please make your mind up.