Thursday, Feb 25, 2010
Comedy club classic - "People seem to have forgotten how much it snowed,"
Telegraph: Morgan laughs off double dip concerns
SteveMorgan has sought to disperse fears of a double dip in the housing market by insisting that sales at Redrow, the housebuilder he founded, have risen sharply so far this year. Figures on Monday showed a sharp fall in the number of UK housing transactions and mortgages granted during January, sparking concerns about the health of the market. However, Mr Morgan said these concerns were "complete --------".
Posted by jack c @ 07:22 PM (668 views) Add Comment
4 Comments
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1. freemanphil said...
Nervous giggle? Or were they laughing hilariously about how ridiculous it was that we believed that recovery could possibly be government led and that we trust any money with these guys, just before they short the markets like a bandit.
2. mark wadsworth said...
Every now and then, I cheer myself up by Googling Redrow's Re:assure house price promise
3. jack c said...
Here's a bit more to the story............
Mortgage drought stalls builders
The country’s sixth largest housebuilder Redrow, says a chronic shortage of mortgage availability and down valuations are stopping new homes from being built. Steve Morgan, chairman of Redrow made the comments as he announced a pre-tax loss in the six months to December 2009 of £8.7m compared with a loss of £46.2m in the same period last year.
Redrow’s cancellation rate is running at around 18% and he says the overwhelming reason is due to mortgage availability and/or down valuations.
Morgan says: “Aside from planning, the other significant obstacle to Redrow increasing output is the chronic shortage of available and suitable mortgage product combined with the persistent and ongoing issue of down valuations by valuers acting for the mortgage lenders.
“This is a particular issue for first time buyers, who desperately need the return of the 90% and 95% mortgage.”
He adds: “We strongly urge the government to join with the home building industry and consider the introduction of a government/industry insurance indemnity scheme, which would enable lenders to provide up to 95% mortgages once again.”
SOURCE www.mortgagestrategy.co.uk/economy/mortgage-drought-stalls-builders/1007445.article
Comments section well worth a read
4. clockslinger said...
Ha ha ha ha ha the profitability of my business depends on 95% loans to value! Ha ha ha ha ha We at Redrow have got used to such ludicrous equity to debt leverage ratios in the UK property market. Ha ha ha ha ha I'm the Chairman of a big bloody building company that has been having a laugh at your expense for years... and I have no intention of stopping now, so bail me out and quick about it you tax paying scum!