Its Not Up To The Govt

[Time to raise the rents.]

http://www.thisismoney.co.uk/mortgages/mor...page_id=58&ct=5

This article shows many key workers can't buy despite govt schemes. Just goes to show that it is the people putting the money into the market (the lender) that say how the market goes, despite whatever the govt wants. If they say its a bad deal, they wont go for it.

This is also true of BTL. Untill the amendments in 1996, the lenders wouldn't go for it. Following 1996 they all piled in & look at where the market is now.

[OnlyMe]

http://www.thisismoney.co.uk/mortgages/mor...page_id=58&ct=5

This article shows many key workers can't buy despite govt schemes. Just goes to show that it is the people putting the money into the market (the lender) that say how the market goes, despite whatever the govt wants. If they say its a bad deal, they wont go for it.

This is also true of BTL. Untill the amendments in 1996, the lenders wouldn't go for it. Following 1996 they all piled in & look at where the market is now.

<{POST_SNAPBACK}>

Lenders of today act more like double glazing salemen, they are now mainly a desperately short-termist breed unable to assess risk. The defaults are only beginning to roll in and it is almost impossible to determine how bad they will get.

[Time to raise the rents.]

Yes why lend to low paid workers with covenants like those when there are plenty of other customers?

[Sledgehead]

Yes why lend to low paid workers with covenants like those when there are plenty of other (even lower paid *) customers...

<{POST_SNAPBACK}>

... whose credit risk can be indemnified away and screw the consequences!

*edit from SH

Edited August 3, 2005 by Sledgehead

[boom_and_bust]

Hi,

Agree that dergulated lending will have an effect on a previously (and continued) market in heavy regulation. I am taking it you're on the positive side. I am open minded, I have seen stranger things, but I also lived through the 1989 and 1993 crashes. The mood and sentiment at the mo feels very similar to 1989 but history very rarely repeats itself exactly. I will listen to any good arguments to form my own opinions.

So, can you also comment on the link with this and the pensions crisis, that spread much fear amongst elderly savers in the UK (I was working in another European country at the time and there wasn't a ripple there because of more stringent financial accounting there, it didn't happen) and the fallout of dot-com share crash. Do you think that an unusually large flow of cash went into housing in the UK because of fear and lack of choice?

The UK stock market has been well underperforming other European stockmarkets, one reason being touted is that UK savers, after several financial disasters, have grown mistrustful of share related investments and have piled savings into the remaining assest outside of shares and pensions - houses. Is this then a longterm thing? Given houses are not very productive, it's just land. You can go to larger European countries like France and Spain and buy a plot of land in the isolated rural areas for a few thousand euro, literally, because there is nothing much there. Isn't business and industry wealth the thing that really tags a markup to the land value? Do the negative economic indicators now in UK plc not matter? Or are they a blip, about to be reversed?

I think at this time they will up turn eventually, because they are cyclical, like the housing market. But if I am incorrect, where do you see the engine at the moment for upward momentum? And also, does raising rents have desirable effects? I would say they are highish at the moment. I have trouble recruiting specialist staff from other parts of the country or overseas because they see London as too expensive - 'yeah, I might earn XYZ on paper but the cost of living if 2 or 3 times more than home.....blah, blah' It is a real problem. They go off to Canada and Mainland Europe. Maybe I should just pack it in and buy houses and rent them out. But if everyone is doing it, who do I rent out to? Finally, sobering thought, unscrupuolous landlords have been sited in many historical events of social turmoil, look at the figures of mass exodus-emigration from Britain to the New Worlds during the victorian era and the turn of the century.

Everything in moderation, that's what I say.

http://www.thisismoney.co.uk/mortgages/mor...page_id=58&ct=5

This article shows many key workers can't buy despite govt schemes. Just goes to show that it is the people putting the money into the market (the lender) that say how the market goes, despite whatever the govt wants. If they say its a bad deal, they wont go for it.

This is also true of BTL. Untill the amendments in 1996, the lenders wouldn't go for it. Following 1996 they all piled in & look at where the market is now.

<{POST_SNAPBACK}>

[Time to raise the rents.]

What a rant!

[boom_and_bust]

Hi,

Yep, it was a rant. But you are always posting these very detailed theories of 'why it's different now', 'landlords are gods chosen children', all that stuff. I give you a debate and THAT'S IT? Aw c'mon, you usually put up a good fight. If you've got a sure fire bet there, share it. I am honestly open minded, I am trying to make my mind up at the moment.

Later muffin,

What a rant!

<{POST_SNAPBACK}>

[GCS15]

Lenders of today act more like double glazing salemen,

<{POST_SNAPBACK}>

As a side issue - The company who invented double glazing also invented a device to evesdrop on conversations in a building by shooting a laser at the window. Double glazing was the counter.

There you go. You can sleep easier tonight

[Tentpeg]

Not really a rant, just some level headed thinking. Mr Boom_and _Bust for Chancellor!

[Rapid Descent]

Aw c'mon, you usually put up a good fight.

<{POST_SNAPBACK}>

I think that was the best argument he had to offer against your opinions