Largest housing rally ever across the UK

Loughton_Monkey

Graham_Devon wrote: »

Making stupid points simply because you don't like the idea doesn't make for a good argument against the idea..

Then I would respectably ask you to stop doing it.

Graham_Devon wrote: »

Clearly the government can borrow over long terms a very low rates at the moment.

Now that's a good idea. Will your friend Miliband like the idea of borrowing even more? I thought he was spouting on about reducing our debt.

If we all agreed with you, Graham, we'd all be wrong.

HAMISH_MCTAVISH

shortchanged wrote: »

Hamish, was the UK building enough houses when the banks were dishing out IO mortgages like sweets,125% mortgages and liar loans?

They were building 50% more than today....:cool:

In fact building increased every year between 2001 and 2007, and by 2007, we had actually come closer to delivering enough houses in a year than we had in over a decade.

Had that trajectory continued, the current housing crisis could have been averted, but instead mortgage rationing caused building to fall to the lowest levels in 100 years and we've created the worst housing shortage since records began while driving rents to record highs.

And now prices are virtually back to peak levels again on average anyway.

Mortgage rationing was clearly a colossal mistake, and has massively worsened the housing crisis, while forcing a generation to enrich their landlords.

Terminally stupid policy.

Thrugelmir

CLAPTON wrote: »

mortgage rates are very low at the moment, the problem is that the government has instructed the banks not to lend except to the very best 'risks'.

Care to quote where the Government made this announcement?

Credit doesn't build houses either. Requires skilled labour and materials. Neither of which can be turned on and off like a tap.

CLAPTON

Thrugelmir wrote: »

Care to quote where the Government made this announcement?

Credit doesn't build houses either. Requires skilled labour and materials. Neither of which can be turned on and off like a tap.

There are simply thousands of government pronouncement about lending that have led to lower levels of mortgage lending

don't you read the newspapers?

Graham_Devon

CLAPTON wrote: »

mortgage rates are very low at the moment, the problem is that the government has instructed the banks not to lend except to the very best 'risks'.

Rather an absurd point to make considering the government has created Funding for Lending and also Help to Buy.

Both aimed at freeing up lending restrictions.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Both aimed at freeing up lending restrictions.

No, both aimed at partially maintaining a tiny semblance of normal lending while the real government restrictions in the way of the new bank capital withholding rules continue to throttle it.

HAMISH_MCTAVISH

UK mortgage approvals:



House building in England:



Population:



Rents:



House Prices:



You can't cure a housing shortage by rationing lending!

And its the shortage, not lending, that ultimately drives up prices and rents.

So simple even 'the usual suspects' should be able to grasp the concept?

cells

Not enough new builds has little to do with mortgage lending and its easy to prove

simply note the huge variation in new build rates between councils

Same country, same mortgage market, same wages, same materials, same designs, same everything. Only the quata is different and as a result build rates vary massively between councils

shortchanged_2

Let's face it. No political party has any real intention of building more houses otherwise they would make it simple. Its all rhetoric.

They've got the money to build hs2, so why can't they build thousands of homes which they can then sell and cover their costs? It's not like the government would have to end up massively out of pocket.

No, let's be honest the will just isn't there for governments to genuinely tackle the housing shortage.

cells

HAMISH_MCTAVISH wrote: »

You can't cure a housing shortage by rationing lending!

And its the shortage, not lending, that ultimately drives up prices and rents.

So simple even 'the usual suspects' should be able to grasp the concept?

Lending will generally mean more people can bid for a home and thus the price would go up. If the price goes up even a little the meerkat responds by outputting more homes.

This can be seen clearly in real world examples. eg Turkey is undergoing a massive construction boom. They were building ~500,000 new homes a year. Then mortgage market was unleashed and the new build rates jumped towards ~800,000 a year. In that example clearly it was good to allow mortgage for more people as the result is more real world production and more homes for a country that needs more homes


however in the UK we are not a market driven housing supply but a quota driven housing supply.

You have such oddities as councils like Telford which has some of the cheapest homes in the UK outputting twice as many homes as Enfield even though its half the size. Thats a 4x difference in output per capita in just two different councils!