OECD calls for restrictions on help to buy

Graham_Devon

The UK government should consider more restrictions on the Help to Buy scheme as house prices continue to rise, an economic forecaster has said.

Help to Buy is a two-pronged attempt to encourage activity in the UK housing market. Prices in many areas have risen since its launch.

The OECD has said that property prices were soaring when compared with rents and household incomes.

"Timely measures" could be used to stop the market overheating, it added.

http://www.bbc.co.uk/news/business-27293044

Graham_Devon

George Osborne told to rein in britains booming housing market.

Britain’s booming housing market must be reined in to protect the economic recovery, George Osborne has been told.

Would-be housebuyers should have to put down bigger deposits and the Government’s Help to Buy scheme should be cut back, the Organisation for Economic Cooperation and Development said.

The intervention from the OECD, an international think-tank, comes after senior figures at the Bank of England identified the housing market as the biggest threat to Britain’s financial stability.

“Monetary policy tightening should be accompanied by timely prudential measures to address the risks of excessive house price inflation,"

“Additional use of macroprudential and other tools to help ensure a balanced recovery in the housing market and contain household leverage should be considered, including tighter access to the Help to Buy programme and the introduction of higher capital requirements or low maximum loan-to-value ratios for mortgages.”

Question is....how many warnings can Osborne ignore?
http://www.telegraph.co.uk/finance/10810195/George-Osborne-told-to-rein-in-Britains-booming-housing-market.html

wymondham

He's very good at ignoring warnings ... ;-)

CLAPTON

whilst I agree that the HTB mortgage guarantee was never a good idea, one does note this influential organisation did predict a triple dip recession.

Graham_Devon

CLAPTON wrote: »

whilst I agree that the HTB mortgage guarantee was never a good idea, one does note this influential organisation did predict a triple dip recession.

Right...and?

Name me one organisation that predicted everything correctly.

CLAPTON

Graham_Devon wrote: »

Right...and?

Name me one organisation that predicted everything correctly.

and... warnings and predictions from 'well regarded' organisations are frequently incorrect

so there is no specific reason to assume they are correct this time unless it agrees with one's preconceived views or agenda.

that said HTB2 was/is misconceived and should be scrapped and of course the planning rules, levies and charges should be reformed too.

mayonnaise

https://forums.moneysavingexpert.com/discussion/1138299

https://forums.moneysavingexpert.com/discussion/1599413

https://forums.moneysavingexpert.com/discussion/1923257

System

Might as well just ban FTBers and have done with it. Bigger deposits, less lending, we know how that pans out.

Graham_Devon

CLAPTON wrote: »

and... warnings and predictions from 'well regarded' organisations are frequently incorrect

You could say that about pretty much any article posted on here.

The fact that you only say it when things go against your beloved view of increasing HPI makes you guilty of your own statement, does it not?

CLAPTON

Graham_Devon wrote: »

You could say that about pretty much any article posted on here.

The fact that you only say it when things go against your beloved view of increasing HPI makes you guilty of your own statement, does it not?

well of course, I wrote what is true.

however, for the record I do not love HPI and would much rather that house prices were lower and relatively more stable,

which is why I have posted hundreds (maybe even thousands) of times, that we need to build more houses. (haven't you ever noticed?)

Graham_Devon

CLAPTON wrote: »

well of course, I wrote what is true.

however, for the record I do not love HPI and would much rather that house prices were lower and relatively more stable,

which is why I have posted hundreds (maybe even thousands) of times, that we need to build more houses. (haven't you ever noticed?)

You do state more houses should be built. I'm not sure whether this is because you know it simply wo't happen.....because on every single other thread that gives other options, you find any way of suggesting [they] are wrong.

With this, it's the fact that the OECD predicted a triple dip, and therefore, what they say about HTB should be ignored.

It's a frankly bizzare way to ignore their statements.

As for your belief that they should be lower, I'm not sure whether this is just a wheeze to be frank, as every time someone else suggests they should be lower, you talk about banks going bust and therefore it's the savers who will pay for the wishes of lower house prices.

What I'm saying here is, it's very easy to say you think something should happen. But when you come up with a myriad of reasons why it can't or shouldn't happen it leaves a gaping hole in what you purport to believe.