Can GB bring house prices down

DontBelieveTheHype_4

So our new prime minister has made affordable housing a priority :j

http://www.thisismoney.co.uk/news/article.html?in_article_id=422227&in_page_id=2&ct=5

If GB makes housing affordable again then that would put a lot of home owners into negative equity would it not as existing prices would need to come down to a new affordable level.

If GB fails then he is going to look foolish after making this his top priority :rotfl:

kingkano

He never said he'd make houses cheaper..... just more affordable Typical polly spin maybe.... or maybe I'm a cynic. Remember that in the same speech he practically told lenders to start getting more inventive with their mortgages (longer term and fixed rates etc).

Doozergirl

[SIZE=-1]Affordable housing is not necessarily low cost housing.[/SIZE]
[SIZE=-1][/SIZE]
[SIZE=-1]Affordable housing is "A segment of the housing market where a proportion of housing is targeted at or reserved for people who are unable to compete effectively in the existing market housing in the area. The term covers a wide range of providers and tenures including public sector, housing allocations, joint ventures and owner occupation."
[/SIZE]

Gorgeous_George

The answer is new council houses.

I agree with much of the sentiment in the bbc article (clicky). However, there are problems created when council tenants and private owners live side by side. The tenants resent the owner occupiers because they don't pay rent and the owner occupiers resent the tenants because some/many do not pay rent or council tax. The answer is separate estates for tenants and owners but with tenants getting a move to a nicer area based on good behaviour.

Can Gordie make more affordable housing - of course he can but only if this housing owned by the council and never sold.



GG

Pobby

Just had a PM from Derek Taylor,aka Brolly Bum.Not very pleasant but that`s care in the community for you!

DontBelieveTheHype_4

Derek_Taylor wrote: »

HOUSE PRICES WILL NEVER CRASH

Who said anything about a crash

But since you mention it, they are in the US right now, they did is Japan (-65%) for 15 years right up to the present day, and there have been 2 price corrections in recent British history. In each instance speculative inflation has been the problem and this is precisely what has occurred in the UK now.
If GB can help to ease pressure on the supply side and the BofE continue ramping up rates then a correction is odds on.

kingkano ... but he will look a stupid if the affordable homes don't materialise.

DontBelieveTheHype_4

Doozergirl wrote: »

[SIZE=-1]Affordable housing is not necessarily low cost housing.[/SIZE]

[SIZE=-1]Affordable housing is "A segment of the housing market where a proportion of housing is targeted at or reserved for people who are unable to compete effectively in the existing market housing in the area. The term covers a wide range of providers and tenures including public sector, housing allocations, joint ventures and owner occupation." [/SIZE]

So there will be a price level for immigrants, benefit scroungers etc etc and another price level for law abiding hardworking people who have grown up in this country, paid taxes etc

Where does that definition of affordable housing come from?

manhattan

derek taylor aka (bruno) the brolly bruiser! lol

ReportInvestor

kingkano wrote: »

he practically told lenders to start getting more inventive with their mortgages (longer term and fixed rates etc).

Fixed rates would have been a great idea a year ago .

And part of the existing problem is that lenders have been inventive (interest only mortgages with no repayment vehicles, self-certification mortgages without enough checks).

We don't need a "new" policy and "change" for the sake of it - just a reapplication of best practice from the past which would help keep the lid on prices until wages catch up.

DontBelieveTheHype_4

Doozergirl wrote: »

[SIZE=-1]Affordable housing is not necessarily low cost housing.[/SIZE]

[SIZE=-1]Affordable housing is "A segment of the housing market where a proportion of housing is targeted at or reserved for people who are unable to compete effectively in the existing market housing in the area. The term covers a wide range of providers and tenures including public sector, housing allocations, joint ventures and owner occupation." [/SIZE]

There may still be a knock on effect ... price indicators will show a drop if more homes come onto the market at a lower price level ? So people will think that prices are coming down and adjust their expectations accordingly.
(Unless the affordable housing sector is not included in headline figures ?)

Doozergirl

DontBelieveTheHype wrote: »

So there will be a price level for immigrants, benefit scroungers etc etc and another price level for law abiding hardworking people who have grown up in this country, paid taxes etc

I'm not even going to bother reading your thread any more. You're ignorant.