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Debate House Prices
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Confirmed: Mortgage Guarantee Scheme Going Ahead
Comments
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HAMISH_MCTAVISH wrote: »
Prices fell a bit but then stabilised long before any of these help to buy schemes, because we have a massive housing shortage.
The last crash in the 90's was mainly caused by interest rates shooting up to 15%. The average buyer was spending almost 70% of pay on mortgage repayments. It was a genuine affordability issue.
Prices stabilised because all of the government interventions and the record low interest rates.
Affordability is good at the moment because interest rates are so low.0 -
grizzly1911 wrote: »What has actually happened is that the population continues to grow .
There is more demand for housing.
Ownership and mortgage provision is only part of the equation.
Low cost social hosing is also required.
Following RTB, social house building dropped off a cliff. The housing industry has never produced enough, private owner occupier (mortgaged) housing to fill the gap in demand. since.
And not just Local authority housing. The abolition of rent control also lost a lot of affordable housing as developers bought up the property and paid off tenants to relinquish their tenancy so it could be developed and sold off.0 -
The US already has had this system for a long time and it worked quite well.
But if we do this we must also do as the US does, only guarantee loans that are granted conservatively.
But this does then create a sub-prime market as in the US which needs to be heavily regulated.
You cannot compare the US market with the UK market. They have plentiful housing whereas we have a huge shortage.0 -
It's worked for years without intervention, what makes it so necessary now?
Letting the air out of the bubble slowly is the name of the game. Maintain confidence in the market. People are just being suckered in to believe that around the corner is a new boom. When in reality the actual course of action in place is to contract lending.0 -
HAMISH_MCTAVISH wrote: »If the market was working as it should government wouldn't need to do anything.
But the mortgage market remains in a dysfunctional state, so government and the BOE have to restore functionality.
That's because HMG has already distorted market forces with ZIRP
tim0 -
I thought the Conservatives were supposed to be into free market capitalism?
Why does everything in this country turn into a muddled sludge of taxpayers' cash propping up "private" schemes that cream off profit when it suits them, but demand government funding whenever they want (see also railways, PFI etc)?They are an EYESORES!!!!0 -
Out,_Vile_Jelly wrote: »I thought the Conservatives were supposed to be into free market capitalism?
Why does everything in this country turn into a muddled sludge of taxpayers' cash propping up "private" schemes that cream off profit when it suits them, but demand government funding whenever they want (see also railways, PFI etc)?
This is new conservatism. As people say, it's easy to be generous with other peoples money!0 -
HAMISH_MCTAVISH wrote: »We're currently issuing in the region of 60,000 mortgages per month before this scheme arrives.
This scheme will add almost another 20,000 mortgages per month if it's implemented correctly, so a 33% increase in lending and buyer numbers almost overnight from the start of next year.
Is that really plausible?0 -
Out,_Vile_Jelly wrote: »I thought the Conservatives were supposed to be into free market capitalism?
Why does everything in this country turn into a muddled sludge of taxpayers' cash propping up "private" schemes that cream off profit when it suits them, but demand government funding whenever they want (see also railways, PFI etc)?
Arguably vast swathes of the private sector wouldn't exist with out the tax payer pound.
Take a look at a few Infrastructure ITs assets for another view on just what "public" stuff is actually owned and managed by the private sector."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
SAVING_IS_DEAD_MONEY wrote: »Yes!!!!!!!!
No doubt Mr P will shortly be along to back you both up.;)"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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