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Debate House Prices
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5k+ homes bought with HTB1 in 6 months
Comments
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grizzly1911 wrote: »Hamish believes the BoE should simply have provided endless liquidity to bolster the market.
Correct.
The solution to a liquidity crisis is always going to be the provision of liquidity.No need to worry as long as house sales and prices increase. No need to be concerned about the quality of the underlying assets.
As has been shown hundreds of times on this board, and even noted by economists on the BOE's MPC, it wasn't UK house prices or UK residential mortgage debt that caused the banking crisis.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
grizzly1911 wrote: »Hamish believes the BoE should simply have provided endless liquidity to bolster the market. No need to worry as long as house sales and prices increase. No need to be concerned about the quality of the underlying assets.
As it turns out the quality of the underlying assets appear to have been quite robust.
Help To Buy is years too late. If it had been introduced around the time of the car scrappage scheme there wouldn't have been such a sharp drop off in building starts and, I suspect, the taxpayer would be making a decent return. There'd still be a shortage of housing but less pronounced.
I can't see how the action taken can be proven to have been any better. A fall in housing starts (when there was already a shortage), increases in HB payments, increases in lending margins, increased rents etc. As far as I can see the only people who have benefited are those that the usual suspects look down their noses at.0 -
the_flying_pig wrote: »if i've not said so before i'll say now that if sincere this viewpoint puts you globally in a minority of, oh, one or so.HAMISH_MCTAVISH wrote: »Heh heh....
Lets look at who else is in the category of "one or so" then shall we....
The Prime Minister of the UK.
I think we need a poll to find out how large this minority of one is.Don't blame me, I voted Remain.0 -
mayonnaise wrote: »I think we need a poll to find out how large this minority of one is.
Ernst and Young's ITEM club can join.....ITEM said the lack of high loan-to-value mortgage finances had cut a swathe of first-time buyers out of the market, and that the scheme would help fix the problem.
“Buy to let and other cash-rich buyers have had the market to themselves until this year, but Help to Buy will help level the playing field for first-time buyers and low equity households,” ITEM said.
As can the UK Treasury....A Treasury analysis has found that the average mortgage for a first time buyer in the 1980s and 1990s was around 95 per cent.
By last year, however, the average had fallen to 80 per cent.
Sajid Javid, the Economic Secretary to the Treasury, said: "These figures show that these mortgages got a whole generation of people onto the housing ladder.
It's right that the next generation, that can afford mortgage payments but don't have large savings, have the same opportunity."
Hmmm, according to Rightmove surveys that "minority of one" is getting bigger....Seven in ten (72%) respondents backed the Help to Buy scheme. Over half (58%) believe it will ‘help more people to buy, aiding housing market and economic recovery’ and one in seven (14%) said that they did not ‘care about politics, as long as it helps me buy or sell’.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
.......
This will be just another thread he has started just to be found out and embarrassed that he has to run away from.
Last seen on post #25, I think you are probably right. It is the normal practice I have to say.
When I was about 7, and in the school playground where we would often play 'football' with a tennis ball, there would often be a bit of a rumpus, at which point a little ruffian would pick the ball up. "It's my ball and I'm taking it..." and run off. Leaving the rest of us to play something else.
For some, such habits never die.0 -
HAMISH_MCTAVISH wrote: »Correct.
The solution to a liquidity crisis is always going to be the provision of liquidity.
As has been shown hundreds of times on this board, and even noted by economists on the BOE's MPC, it wasn't UK house prices or UK residential mortgage debt that caused the banking crisis.
Because liquidity has been provided, interest rates are on the floor and lenders have been told to adopt kid gloves.
This wasn't the sole aim of rates and liquidity provision but they are inextricably linked.
How is all this debt going to be serviced going forward?"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 -
Isn't it being serviced now? What would make it change for it not to be serviced?grizzly1911 wrote: »Because liquidity has been provided, interest rates are on the floor and lenders have been told to adopt kid gloves.
This wasn't the sole aim of rates and liquidity provision but they are inextricably linked.
How is all this debt going to be serviced going forward?0 -
Isn't it being serviced now? What would make it change for it not to be serviced?
If UK PLC has a balance of trade deficit where is the money coming from?"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 -
grizzly1911 wrote: »How is all this debt going to be serviced going forward?
I understand most people set up a direct debit and pay it that way.
I suppose you could also use cheques or cash or even a debit card....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Does the balance of trade deficit directly correlate to the UK mortgage market?grizzly1911 wrote: »If UK PLC has a balance of trade deficit where is the money coming from?0
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