Thursday, Jul 09, 2009
UK economy built around property values!
Timts Online: Housing recovery stunted by 'lack of mortgages'
Redrow also sounded a note of caution on the mortgage market, stating: “Without doubt this is a major obstacle to the recovery of the housing market and we are of the view that resolving this issue can play a significant role in a recovery of the economy as a whole."
"However, both said that a lack of mortgage finance was impairing recovery".
Posted by tim miller @ 12:00 PM (763 views) Add Comment
7 Comments
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1. paul said...
I do wish construction industry VIs would stop bleating about the fact that the rest of the world considers their goods overpriced.
2. mander said...
Some comments on http://business.timesonline.co.uk/tol/business/economics/article6672529.ece :
House prices should fall until they are typically 3.5 times the average salary. They are still overpriced. All these fools who thought BTL was a guaranteed winner were wrong.
James Wilson, London,
And here it comes:
Yeah James Wilson from London, you're right I'm a fool. I wager my £2m portfolio against your nothing in 20 years. I don't have to work at the moment because yields are so high, I'll probably pick up my laptop and phone again when rates go back up. Man I feel foolish. Any other landlords agree?
Matt, Leeds, UK
Is Matt the businessman the UK economy will rely on? Creating jobs helping the country compete in the global economy etc.? Or are the Conservatives going to get share of the £ 2 million protofolio by making interest on debt not deductible?
3. 51ck-6-51x said...
Rising house prices have been thought of as a good thing by governments due to what is known as "The Wealth Effect". A recent report suggests that the effect is nowhere near as pronounced as was thought.
"Housing Wealth Isn't" - Willem H. Buiter
- as reported on in last week's Economist.
4. 51ck-6-51x said...
err "Housing Wealth Isn't" ..." Wealth". oops.
5. enuii said...
Rubbish; 48 year old bloke walks into Nationwide BS yesterday afternoon, the nice young lady at the branch taps a few details into he computer which then says good news sir you can have 4x yours and 4x hers.
48 y/o replies but I'm supposed to retire in 12 to 17 years time, no worries says the girl consulting her computer you can still have it over 25 years.
How much will it be then? answer £2200/month.
Oh and bye the way we don't offer variable rates anymore they are all trackers about 3% above B of E rate or fixes.
Business more or less as usual then.
6. jonb said...
It is true that there is no such thing as a sub-prime mortgage any more, self cert mortgages are pretty much extinct, buy to let mortgages are much rarer than they used to be, and you now need a large deposit.
But when people ask when things will return to normal, what they don't understand is that this is normal. What came before in the few years leading to 2007 was not normal.
7. hpwatcher said...
There is no other industry in this country, so it isn't really surprising that house prices have become a national equities scheme.
It's completely destroyed the competitive edge this country used to have, because everyone has to work for higher wages to pay for their damn mortgage.