Shapps hails collapse in house building

homelessskilledworker

Degenerate wrote: »

I distinctly recall from a couple of years back, that several of the housing bears around here were convinced their inability to own a home was all Gordon Brown's fault, and that a Tory Government would somehow fix this situation.

Hate to break this to you, but Gordon Brown was kicked out two years ago so is unable to fix anything.

And yes, I think Gordon Brown did play a huge part in inflating this property Bubble.

homelessskilledworker

HAMISH_MCTAVISH wrote: »

Only because the mortgage market is broken.

They can clearly afford to buy a house when mortgage lending returns to prudent, historically normal, and sensible criteria....

Where a good work history and credit rating means you can get a mortgage with a 5% or 10% deposit, at non-punitive margins above banks funding costs.

We don't have those criteria today though.... So few can buy.

After all, they're already paying more in rent than they would with a mortgage in 90% of the UK. Affordability clearly isn't the problem.



The mortgage shortage is worsening the problem, and ensuring even fewer houses get built.

But it doesn't change the fact we have a critical housing shortage.

You really live in fairy land don't you Hamish...

This is all one big PAUSE as far as you see it, where all the lenders decided to have a nice little Kit Kat break for a little while so they can catch their breath before they start loading wod's of money again.

The sales of homes is down over 40% from peak, banks are still in big trouble throughout Europe, we are in recession with every chance it will get worse.
Even Poles are now starting to go home to their stronger growth economy, so sadly your support of over population of the UK to keep prices up will not help you either.

We are in a credit crunch that has a way to go yet Hamish, and I am amazed that such an opinionated poster such as yourself is blind to it.

brit1234

Turnbull2000 wrote: »

The only politically feasible route to lots of housebuilding is a slackening of mortgage restrictions and lots more lending.

No the clear solution to tax unbuilt land banks, to stop cartels keeping the price of land artificially high. Cheaper land available for small builders can produce cheaper houses.

There is no problem with the mortgage market if you have saved a deposit and a good credit rating. If you don't then you simply focus on getting it.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Yes.



Almost....

Builders can't get the development finance to build houses, because of the dysfunctional credit markets.

Buyers also can't get the mortgage finance to buy houses, because of the dysfunctional mortgage markets.



Builders can't build, and buyers can't buy.

Both have the same cause.

A dysfunctional and broken lending market.

People that can demonstrably afford to pay a mortgage, and that would have been historically creditworthy, are being refused credit.

As banks must ration supply by tightening lending criteria and raising deposits until the pool of eligible buyers shrinks to match the limited pool of funding.

What tosh. Yet you pedal it seemingly continually. You discredit yourself with this nonsense.

The builders themselves are on record stating they can build more, have the land to build more, have the permission to build more, but don't need to build more and will instead build houses aimed at the higher end of the martket.

Meanwhile, they lobby the government for MORE of the taxpayers money to build FTB type homes.

All this is is a hostage situation, with the builders looking to tap into government (taxpayer) funds as much as they can, on the back of a "crisis".

wotsthat

Graham_Devon wrote: »

The builders themselves are on record stating they can build more, have the land to build more, have the permission to build more, but don't need to build more and will instead build houses aimed at the higher end of the martket.

If a business sees more opportunties & demand at the higher end of a market rather than the lower end then it makes sense to allocate resources appropriately. Why manufacture something that target customers can't buy?

As it happens everything's going swimmingly - Shapps was on Radio 4 this morning and he couldn't have been more delighted about the number of affordable houses being built. Maybe he owns a few BTL's.

Wheezy_2

wotsthat wrote: »

Shapps was on Radio 4 this morning and he couldn't have been more delighted about the number of affordable houses being built. Maybe he owns a few BTL's.

What a difference 2 years make...

http://www.24dash.com/news/housing/2010-06-08-Shapps-The-age-of-home-owning-aspiration-is-back

Shapps: 'The age of home-owning aspiration is back'

Housing Minister Grant Shapps will today promise to help more people to become homeowners.

pqrdef

HAMISH_MCTAVISH wrote: »

Only because the mortgage market is broken.

You mean, because it's less broken than it used to be.

Like I said, the "housing shortage" doesn't consist of people ready and willing and able to buy a house, if only there were houses for sale. It consists of people moaning that they don't have the financial resources to get into the property market, though why they think they should have is a mystery.

HAMISH_MCTAVISH

pqrdef wrote: »

the "housing shortage" doesn't consist of people ready and willing and able to buy a house, if only there were houses for sale.

It consists of people ready, willing and able to buy a house, if only they could get a mortgage on historically normal, prudent and sensible terms.

But they can't....

So we've prevented over a million people from buying in the last few years. In another few years it'll be two million prevented form buying. Then three million prevented from buying......

And in the meantime rents have soared to new record highs, and overcrowding continues to increase.

We withdrew 65% of lending from the market, yet prices remain just 10% or so below peak.

We form 250,000 additional households a year, and in the last few years have built just over 100,000 houses a year.

The number of empty houses is now down to just over 300,000 (remember all those claims it was a million just a few years ago?) and void periods for landlords have reached record lows of just 14 days per year, and still falling.

But still we have housing shortage deniers....

Absolutely amazing.

pqrdef

HAMISH_MCTAVISH wrote: »

Absolutely amazing.

It amazes me that anybody can get a mortgage at all. From a lender's point of view, it's a crazy deal.

HAMISH_MCTAVISH

Graham_Devon wrote: »

What tosh. Yet you pedal it seemingly continually. You discredit yourself with this nonsense.

Graham, the only one speaking tosh is you.

Mortgage rationing is absolutely the biggest problem facing the housing market today, and it's not just my opinion.

Here's the BBC, RICS and even the CML admitting it....

A survey of chartered surveyors said that potential buyers were still being put off by economic worries and continued mortgage rationing.
http://www.bbc.co.uk/news/business-13760176

Mortgage rationing, which has depressed UK property sales, will stay in force until at least the end of 2012, the CML says.
http://www.bbc.co.uk/news/business-13620099

the rationing of mortgage funds by lenders are attributed to the general stagnation of the market.
http://www.mortgageintroducer.com/mortgages/240338/5/Industry_in_depth/House_prices_still_sliding.htm

One factor weighing on the market has been the continued rationing of mortgage funds by lenders
http://www.vanguardngr.com%2F2011%2F05%2Fuk-housing-market-still-lacklustre%2F

And finally, from the CML themselves, who readily accept that the UK mortgage market is "dysfunctional".....

In our view, the key point about UK mortgage and housing markets is that they remain dysfunctional, and are not effectively meeting the needs of consumers.

What is really needed is a sufficient flow of mortgage lending to allow those who can fulfil their financial commitments to move home in response to their changing circumstances if they want to, and for first-time buyers to realise their reasonable aspirations to become home-owners.

Now... back to the rest of your drivel.

The builders themselves are on record stating they can build more, have the land to build more, have the permission to build more, but don't need to build more and will instead build houses aimed at the higher end of the martket.

Because nobody at the low end of the market can get a mortgage, you flaming numpty, so they're not going to build houses they can't sell.

That would be stupid.

FTB-s have been completely disenfranchised, the victims of the new mortgage apartheid.

Builders won't be building much in the way of homes for FTB-s when most of them can't get a mortgage, despite paying more in rent than they would to buy.

Meanwhile, they lobby the government for MORE of the taxpayers money to build FTB type homes.

No, they lobby the government for more lending to FTB-s on reasonable terms.

All this is is a hostage situation.

Well you got that bit right......

But it's the bankers holding the country to ransom, not the builders.