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House Price Crash Forum


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About roadtoruin

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    West Sussex
  1. I think the financial indusry has created its own narrative re bonuses to justify maintaining scales of pay outside reality. I don't believe someone peforms better for 5 million rather than 2 million - and what does it say about them as a person if that is necessary? Of course you do want top talent, but how much of that involves real foresight or ability to think out of the mainstream balance sheet? These groups of top performers have demonstrated their collective ability to destroy the global economy through 'not seeing it coming'. What else more important were they paid to do but notice impending disaster? Hester was in charge of Abbey National in 2004, now a spanish bank in trouble with a very poor reputation. Then he jumped ship to British Land until that was going nowhere. Seems like his main qualification was simply having been there and done it - like football managers - string of mediocrity in their CV but somehow keep being given top jobs.
  2. Character my @rse, like handing back a million of the £7-8m he's had in the last couple of years is any hardship whatsoever. He's a grasping piece of tory sh1t and has been all his career (shame on labour for appointing him, but then all bankers are tories almost by definition so what's the diff...). Best thing would be if the slimy fat **** would fall off his horse while out hunting and break his neck, save us all a few quid.
  3. Ahhh, the anti-taxation mantra comes again, dressed up with a few bits of homespun doggerel - do you pick these up from homilies printed on souvenir tea towels or something?
  4. And stats show that long-term benefit recipients are one of the lowest voting group. I suspect eventually they will get hammered by both parties for that very reason.
  5. What's it got to do with the councils getting a look in, they're not buying them. And what's with labelling everyone who criticises anything cretins all the time - I happen to be equivocal about this scheme and doubt the councils would lose money; if long-term they do I'll openly say I was wrong. IMO, the idea that a totally free market in housing can operate in the UK with the restricted supply and unequal access to capital that pertains is fanciful. But I wouldn't call you a cretin for believing that.
  6. So you're asserting that if the Govt/Council thought these properties could be purchased by BTLs, then they wouldn't have bothered to set up this scheme. Well you're endowing them with an omniscient power of prediction I very much doubt they possess. And given the hype and cheerleading coming out from the pro-BTL camp in the past few weeks, I'd say price discovery is occurring at the 5-6% yield for them. If prices drop (as they should), then expect to see even more BTL activity competing for affordable housing until some action is taken to curtail them.
  7. It's not spent though, it's lent, and I'd be very surprised if they lost 5% of it through defaults. Might also save money in subsidised rentals and housing benefit. If we were talking propping up 400K mortgages in London, that's a different matter, but isn't this scheme targetted at cheaper housing? The stuff that BTL parasites will hoover up otherwise.
  8. How are they picking? Are the mortgages not open to all applicants? And letting the market decide - that's the market that allowed all the crazy lending to get out of hand because they were insufficiently regulated is it ? - you think they should be handed back total responsibility? The one that's decided that preferential lending to BTLs is the best way to go? Yes, that'll work.
  9. Although an uber-pessimist and a believer in lower prices, I just don't accept that the whole raison d'etre of this scheme is to prop prices up, and plenty of homeowners do not want prices propped up. The HPC argument/mantra is that if schemes like this do not exist, prices will drop because of the unavailable credit. But we have had 'unavailable credit' for months or years now with high deposits required - and with little effect on house prices. I believe if they are going to fall, house prices will, regardless (they did in the early 90's despite easy 95% mortgage availability). It's not the risk of default stopping banks lending 90-95%, but the requirement for higher reserves imposed by Basel II. I see nothing wrong with this scheme provided the lending criteria are prudent; the council will probably save money from their housing budget through not having to give quite so many wedges of cash to private landlords.
  10. It would be interesting to compare how the buyers costs compared vs renting in this lower-priced area. Perhaps the council are counting on saving some money on their outlay on overpriced rents. If there's outbidding to be done, I suspect it will be by the BTL brigade. After all, 5-10% deposits reflect the historical norm for FTBs, not 20-25%, so this scheme could be argued levels the playing field somewhat.
  11. Where's the lie? These are loans of comparatively small size that will be scrutinized (i.e. no self-cert)
  12. Why exactly? More (even if only a few) would-be FTBers are enabled to buy rather than continue renting, so that helps BTLers?
  13. No intrinsic value in your narrow terms perhaps. In mine there is, because I believe generalities, esp. at 99%, are admissible, even necessary to oil human discourse. Otherwise there is never a funny film, an entertaining football match or an irresponsible banker, is there?
  14. When anyone talks about objects emitting value, my heart sinks... Even if I were to argue it, you could only be talking about intrinsic property, not value (the latter having a human context). For though the sun shines on all in it's path, the photosensitive or parched and waterless person detests it and attributes it no value.
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