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Help to Buy 'mistaken' and 'dysfunctional' says Posen
grizzly1911
Posts: 9,965 Forumite
An ex-member of the Bank of England's monetary policy committee, Adam Posen, has called the government's Help to Buy scheme 'mistaken' and 'dysfunctional'.
Chancellor George Osborne considers the scheme to be of crucial help to house buyers, and also a means of stimulating the construction sector.
But Mr Posen said: "I find this whole initiative largely mistaken by the Treasury."
The first stage of Help to Buy was recently extended until 2020.
"The idea of pumping up credit for middle to upper-middle class people to spend more on housing, when people have already spent too much on housing, is dysfunctional," Mr Posen told BBC Radio 5 live's Wake Up to Money programme.
"We need a distinction between housing policy and mortgage policy, and we need affordable housing in the great cities of the North.
"London is now semi-detached from the rest of the country. There's a perception that it's just pockets in Kensington or Chelsea, but increasingly the homes in zone two or zone three [of the London Underground map] are going out of the price range of normal people."
http://www.bbc.co.uk/news/business-26679739
As he is an ex member I guess he really doesn't know what he is on about:think:
Pump it up George.
Chancellor George Osborne considers the scheme to be of crucial help to house buyers, and also a means of stimulating the construction sector.
But Mr Posen said: "I find this whole initiative largely mistaken by the Treasury."
The first stage of Help to Buy was recently extended until 2020.
"The idea of pumping up credit for middle to upper-middle class people to spend more on housing, when people have already spent too much on housing, is dysfunctional," Mr Posen told BBC Radio 5 live's Wake Up to Money programme.
"We need a distinction between housing policy and mortgage policy, and we need affordable housing in the great cities of the North.
"London is now semi-detached from the rest of the country. There's a perception that it's just pockets in Kensington or Chelsea, but increasingly the homes in zone two or zone three [of the London Underground map] are going out of the price range of normal people."
http://www.bbc.co.uk/news/business-26679739
As he is an ex member I guess he really doesn't know what he is on about:think:
Pump it up George.
"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 Muruganantham
"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 Muruganantham
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Comments
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grizzly1911 wrote: »As he is an ex member I guess he really doesn't know what he is on about:think:
Slamming Help to Buy is a guaranteed way to grab some media attention.
If he'd just mentioned that he thought the banks required more regulation it wouldn't have got him any interviews.
Looks like the focus is shifting for the frothers. It allows the hand wringers to pretend house prices are rising because of HTB and pension changes - absolutely nothing to do with their nimbyism of course.0 -
he has cleverly focused on the core issue: the lack of affordable housing in great northern cities
we need another million properties in London and the SEEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Slamming Help to Buy is a guaranteed way to grab some media attention.
If he'd just mentioned that he thought the banks required more regulation it wouldn't have got him any interviews.
Looks like the focus is shifting for the frothers. It allows the hand wringers to pretend house prices are rising because of HTB and pension changes - absolutely nothing to do with their nimbyism of course.
And you seriously think this is about a frother getting an interview?!0 -
he has cleverly focused on the core issue: the lack of affordable housing in great northern cities
we need another million properties in London and the SE
Or less people located and working in the south east.
Offshore investors buying up property as investments trinkets in a "safe haven", then mothballing them, doesn't help."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: »...As he is an ex member I guess he really doesn't know what he is on about:think:...
aye, bank of who? ask an estate agent if you really want to know what's going on.FACT.0 -
grizzly1911 wrote: »Or less people located and working in the south east.
Offshore investors buying up property as investments trinkets in a "safe haven", then mothballing them, doesn't help.
yes, if there were realistic policies for encouraging job creation north of Watford
however at the moment one has to live in the real world where this isn't happening on a large enough scale.
Posen seemed simply to dismiss the SE issue in favour of affordable housing in the northern towns.
I don't really have any figures for the foreign owned investment property but that seems a problem that taxation could significantly affect.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
grizzly1911 wrote: »"The idea of pumping up credit for middle to upper-middle class people to spend more on housing, when people have already spent too much on housing, is dysfunctional," Mr Posen told BBC Radio 5 live's Wake Up to Money programme.
Credit was available before HTB and will be available after HTB.
The largest mortgage lender in this segment of the market (Nationwide) isn't even participating in the schemes.0 -
The bank of England monetary policy committee has to tow the Government line I suspect (that is excessive house prices is good for everyone). I'd like to see interviews with the last 10 members who have left to see what real views are when not supressed...0
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Graham_Devon wrote: »And you seriously think this is about a frother getting an interview?!
If you're an economist your chance of air time increases significantly if you have something controversial to say about Help to Buy.
If he'd just mentioned that he thought bank regulation should be tougher and housing policy should be separated from mortgage policy he'd be taking to himself.0
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