Help to Buy may have to be scrapped, Vince Cable warns

chucky

dryhat wrote: »

That's right, I found out yesterday that you think super mario coins are the same as bitcoins.

...... and your evidence for this was gathered from typing "bitcoin+fraud" into google.

:rotfl:

You really don't have a clue do you...

Graham_Devon

Another day, another warning...

Next, the clothing retailer led by Conservative peer Lord Wolfson, has told its shareholders that government support for new home purchases was likely to fuel a damaging house price bubble.

Issuing half-year results that showed an 8 per cent increase in underlying pre-tax profit, the FTSE 100 group also dismissed talk of full-blown economic recovery in the UK as “premature”.

Next said it was worried that the looser mortgage market combined with government stimulus would create an “unhelpful” spike in house prices followed by an interest rate rise that would result in a “significant drag on the economy”.

“In the long run house price inflation, without house building, is as dangerous as any other type of inflation and ultimately represents a transfer of wealth to property owners from those who do not own their own home,” it said.

http://www.ft.com/cms/s/0/7252cbf4-1b75-11e3-b678-00144feab7de.html#axzz2efzKwgcL

MFW_ASAP

Graham_Devon wrote: »

Another day, another warning...


http://www.ft.com/cms/s/0/7252cbf4-1b75-11e3-b678-00144feab7de.html#axzz2efzKwgcL

I thanked this because GD seems to have listened and added to an existing thread on Help to Buy, rather than creating a new one. Well done, GD.

Dribley

chucky wrote: »

Do you go round in your real life making things up and lying?

He certainly doesn't, that's your job!

the_flying_pig

Graham_Devon wrote: »

Another day, another warning...


http://www.ft.com/cms/s/0/7252cbf4-1b75-11e3-b678-00144feab7de.html#axzz2efzKwgcL

He's more or less right, of course, to say that HPI "ultimately represents a transfer of wealth to property owners from those who do not own their own home"... only it's too simplistic - it's generally a transfer of wealth up the housing ladder, from youngest to oldest. trader-uppers lose out, only not by so much as FTBs.

Where he's wrong is to say that HPI is, "as dangerous as any other type of inflation" - it's far worse. could you ever imagine 'inflation' that only affects one type of products (say smartphones or haircuts whatever) causing a global recession? oil is the only other product that's remotely on a par.

RUN_RABBIT_RUN

Graham_Devon wrote: »

Another day, another warning...


http://www.ft.com/cms/s/0/7252cbf4-1b75-11e3-b678-00144feab7de.html#axzz2efzKwgcL

that's subscription only content, graham. i'd be careful about reproducing it here without permission.

nice that next have an opinion although aren't we scraping the barrel a bit in terms of parties who have an opinion on this? my auntie down the road thinks it's a fabulous idea.

Graham_Devon

RUN_RABBIT_RUN wrote: »

that's subscription only content, graham. i'd be careful about reproducing it here without permission.

nice that next have an opinion although aren't we scraping the barrel a bit in terms of parties who have an opinion on this? my auntie down the road thinks it's a fabulous idea.

Didn't know it was subscription only to be honest. I don't have a subscription...

As for the opinion of Next, they are one of the most respected companies out there are they not? Easy to mock every opinion.

Though it's the sheer number of individuals and groups warning against this that I'm interested in.

What recent policy has had such criticism and warning against implementation from so many different sectors of the economy?

the_flying_pig

Graham_Devon wrote: »

...Next, they are one of the most respected companies out there are they not?...

well, Wolfson was the youngest ever UK FTSE100 CEO, no? certainly nobody's fool.

i suppose that their VI here is moderately clear... Next's target market is upper working & lower middle class people in their 20s & 30s, shedloads more housing debt would have an obvious detrimental effect on the spending power of this group.

RUN_RABBIT_RUN

Graham_Devon wrote: »

Didn't know it was subscription only to be honest. I don't have a subscription...

it won't let me read the article via the link you've provided without providing subscription login details or signing up.

Graham_Devon wrote: »

As for the opinion of Next, they are one of the most respected companies out there are they not? Easy to mock every opinion.

Though it's the sheer number of individuals and groups warning against this that I'm interested in.

What recent policy has had such criticism and warning against implementation from so many different sectors of the economy?

i'd say next are a respected retail company but i wouldnt go to them for mortgage advice!

its bound to be divisive given what it is, there are plenty of people who don't share the critical view, such as the Lloyds CEO -

http://www.mortgagestrategy.co.uk/latest-news/lloyds-chief-says-help-to-buy-will-not-cause-a-housing-bubble/1077065.article

there's a ying to every yang on it is all i'm saying

you know my views on it though, i think aspects of it are madness

Graham_Devon

Aye, both Lloyds and Halifax, part owned by the taxpayer due to having to be bailed out agree with the government.

Even the BBC picked up on the fact that the Lloyds boss (not going to even attempt spelling his name!) couldn't really say anything else.

Be good to have a summary of those who agree with the scheme though.