Wednesday, Jul 22, 2009
More Rose Tinted
BBC News: Further Signs of Housing Pick-up
Usual thing, this time interpreting figures from the tax authority.
There is now, a strong united theme emanating from all the ramping articles which is the lack of lending. Pressure on the banks and building societies has yet to work but the focus is definitely on them. As the bounce begins to flatten I expect to see huge amounts of government money and publicity on scheme(s) that offer 75/80% mortgages from the banks together with 20/25% guaranteed loans from us, the taxpayer. House prices are the single most essential requirement for GB to get re-elected. No effort will be spared, no stone left unturned in order to avoid another downturn in prices. Market forces against a desperate government.
Posted by nomad @ 10:35 AM (1160 views) Add Comment
10 Comments
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1. str 2007 said...
(Market forces against a desperate government.)
Sounds expensive.
2. Adarmo said...
That's half the level in April 2007. Oh dear.
http://news.bbc.co.uk/1/hi/business/8160760.stm
3. nomad said...
Battle of the giants. Did you hear the theme from the Magnificent Seven as you read it?
4. mrflibble said...
@nomad...
I think we have reached the end of the government propping up the market via equity loans, at least I hope so. The last pile they handed out has quietly run out with no mention of more. Gordon Brown is a desperate man though, so anything is possible.
5. 51ck-6-51x said...
Typical that the BBC report on the NIESR's latest report here ( as per the HPC post, here ) but do not mention their forecast of real house price falls yet they happily pick up this data and run with it.
6. nomad said...
@3 mrflibble (best moniker on the site:-). We would love to see the end to spending of future taxes but, hey, what's another billion or two? After parliament's three month break I suspect there will be a loud clarion call to stop house prices falling - so vital to a feel-good factor for so many of us, 70% of housing is owner occupied.
Along with many here I have felt that Autumn this year was a crunch time for many reasons - I'm just agog to see what the government will do to counter, they most surely won't just let it happen.
7. mrflibble said...
@4. 51ck-6-51x
You highlight a good point and this is the trouble with the Average Joe, he looks at the two headlines, "Further sign of housing pick-up" and "UK recovery 'to take five years' " and comes to the conclusion that the housing frenzy has somehow started back up again, even though the backdrop to it suggest that the whole idea is farcical.
Headlines stick in people's minds more than the content of the story, if the housing one had been "Latest Housing Figures From HMRC," the reader would have to read, think and understand, but instead he is given the conclusion right from the start. I'd guess you could reverse the figures and 8/10 people wouldn't even notice, except the folk on here, who would be all over it like a rash *lol*
8. quiet guy said...
It's true that the "Average Joe" might glance at the article and come away with the wrong impression about future price trends but the author of this article has not made any predictions about future prices and the article content seems pretty factual. Allegations of "ramping" seem OTT to me.
9. 51ck-6-51x said...
QG
- I agree that the article content itself is relatively balanced, but the point is many people only read the headline, or read the article with the neurological anchoring instilled by the headline.
10. Njp said...
Luckily, it doesn't matter whether "Mr Average Joe" thinks the housing market is about to take off or not. Until the banks start lending 100% mortgages to people with no income (as unemployment is set to rise further) he won't be able to find the money to buy, even if he wants to.
I think that sentiment is still very 'positive' about the housing market, but if (when) the big price falls start again in a few months, that will start to evaporate.