Sunday, Oct 19, 2008
The taps will be turned on again eventually?
Independent: So will mortgage lenders ever let us come back in?
Housing is going from bad to worse despite the Government's multi-billion- pound bailout scheme for British banks.
Agents blame the banks, and their continued lack of willingness to lend, for the moribund state of the property sector. "There is demand out there – people want to move home. The market is like a hosepipe full of water but the banks have their foot on it, causing pressure to build up with no outlet," says Nick Salmon, an estate agent and board member of the National Federation of Property Professionals.
Posted by matt_the_hat @ 09:53 AM (516 views) Add Comment
5 Comments
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1. renting2 said...
I disagree, the people with their foot on the hosepipe are the sellers who refuse to reduce their prices to a level where ordinary people can afford them and the banks are happy with the risk.
2. matt_the_hat said...
Sticky up - a bit like petrol prices - which will never be allowed to drop below 1 pund per litre
3. phdinbubbles said...
Yes; a rather old and decayed hosepipe with a bulge swelling up in it.
4. goweresque said...
What an ignorant comment (from the original article)! No surprises it was an estate agent though. Demand for any desirable product is always high, what determines the true level of demand is price. At the current level of house prices the demand is low because no one can afford to pay it. Has the estate agent thought that if prices were back at (say) 2000 levels they would still be higher than the top of the late 80s boom, but people could actually afford them? I suppose his solution is for the banks to lend us all huge amounts of money, that we can never pay back, so we can bid up house prices for ever. That should solve the credit crisis. Perhaps we can all have loans to buy Ferraris or Porsches too. I fancy a 911 Carrera 4. I can't afford 100K+ but if I moan enough to my MP do you think RBS or HBOS will lend me the money?
5. nooneo said...
This is just more Vested Interest nonsense. The banks aren't lending money because of 2 absolutely simple facts:
1. They simply haven't got the money. The international money markets are now stuffed. No-one with any money is going to lend to intitutions they can't gaurantee getting it back from. The banks are in survival mode now.
2. The banks and money lenders know the game is up. They know that the prices of property is in free fall. How on earth can the lend money, secured against an asset, when the assets value is going down and down. Even a 7 year old could get this one straight. It's a shame that Estate agents and their collective bodies can't figure this one out. Perhaps they have all had frontal labotomies, sure looks like it when I see them valuing on "Property Ladder" and "Homes under the hammer"
Denial - There is no house price bubble. Yes it's no use worying about falling house prices if you KNOW your property is HPC proof. Of course it's worth the same/more than you paid for it becasue a tubby Sloanie called Kirstie Allopp said so.
Despair - When you see the hoards of property boards filling the street and you can't sell you still vastly over-priced property. The worry that no-one can get a mortgage will seem irrelevant
Anger - You can't move, you can't release any equity you may still have remaining in your property, you will get more and more angry with how we got here. Stop blaming everyone else. You took out the mortgage.
Acceptance - This will only come when people realise that the property piggy bank is broken. It will take 10-15 years to work this problem out and will probably start all over again as our wonderful politicians regardless of their "No more boom and bust" mantras, will keep milking the property market to both gain revenue and kudos from the sheeple who can so no other way of paying for their lifestyles other than magically making money from ever increasing property prices.