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Labours Sercet Repo Warning Report!

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of course repos are high, but not the highest.

300,000 families were "helped" by taxpayer handouts.

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Repossessions could hit 175,000 a YEAR, according to unpublished Government report.

Labour has been warned the number of repossessions could spiral to 175,000 in 2012, it can be revealed for the first time today.

The 'worst case scenario' prediction would have meant record-breaking numbers of families, equal to nearly 480 every day, being evicted from their homes.

During the last recession, the number of repossessions peaked at 75,500 in 1991, less than half of the 'doomsday' prediction.

Since the forecast was made, however, the economy has emerged from recession - making the projected figure redundant.

Latest predictions suggest the true number of repossessions will actually be less than a third of this number.

But the secret report, commissioned last year by the Department for Communities and Local Government and compiled by top academics at Oxford University, was kept under lock and key.

The new housing minister, Tory MP Grant Shapps, said yesterday he was shocked when he discovered the findings of the hidden report - which he releases today for the first time.

Under one of its forecasts, it predicts repossessions would climb rapidly to a record 109,000 next year and to an even higher record of 174,521 in 2012.

The gloomy prediction, called 'Scenario 6', predicts high unemployment and 'rapidly' rising interest rates 'perhaps because of a sovereign debt crisis in the UK'.

Mr Shapps said: 'John Denham [former Secretary of State for Communities and Local Government] commissioned this report and then shamefully sat on it during the election.

"It exposes the gulf between the Labour Party's rhetoric and the sensitive state of the housing market.

Nieu Labia were lying scum.

Read more: http://www.dailymail.co.uk/news/article-1296101/Repossessions-hit-175-000-YEAR-according-unpublished-Government-report.html#ixzz0uAoFxBwi

Edited by eric pebble

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It will be most interesting to see what the Coalition will do about this, if anything...

but:

During the last recession, the number of repossessions peaked at 75,500 in 1991, less than half of the 'doomsday' prediction.

Since the forecast was made, however, the economy has emerged from recession - making the projected figure redundant.

Latest predictions suggest the true number of repossessions will actually be less than a third of this number.

Edited by Kazuya

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Still far too much intervention to keep the feckless...erm i mean unfortunate...in their homes. Why is the government still throwing money at councils to help people with their mortgages when cuts have to be made?

By the way I have heard anecdotally that demand for these so called mortgage rescue schemes has ballooned since the beginning of June. Loads of people not just those losing their jobs but on reduced hours or pay and since they were living at the limit they have gotten themselves into a mess. But no worries the government to the rescue.

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Bloo

No money left to help them!

Mike

you are right...in point of fact, there wasnt any money to even start helping them.

Modulators!...merge this with the latecommer from SirEric

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Still far too much intervention to keep the feckless...erm i mean unfortunate...in their homes. Why is the government still throwing money at councils to help people with their mortgages when cuts have to be made?

By the way I have heard anecdotally that demand for these so called mortgage rescue schemes has ballooned since the beginning of June. Loads of people not just those losing their jobs but on reduced hours or pay and since they were living at the limit they have gotten themselves into a mess. But no worries the government to the rescue.

Even ignoring the politics, it's understandable logic. Probably cheaper than the rehousing bill, and probably prevents a banking collapse.

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Even ignoring the politics, it's understandable logic. Probably cheaper than the rehousing bill, and probably prevents a banking collapse.

how can paying 6%+ on a mortgage be cheaper than B+B at the local?

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how can paying 6%+ on a mortgage be cheaper than B+B at the local?

The answer is:

Average mortgage =120k therefore 6% mortgage paid =7200

Average household size = 3.5 therefore equivalent b+b cost pppn = 7200/365/3.5 = 5.64

I'm not sure if there are many b+b's where you can stay for 5.64 per night.

You did ask.

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how can paying 6%+ on a mortgage be cheaper than B+B at the local?

How much is a B&B/week? How much is the weekly mortgage payment? My back-of-a-matchbox sums seem to indicate that the mortgage payments might be cheaper...

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The answer is:

Average mortgage =120k therefore 6% mortgage paid =7200

Average household size = 3.5 therefore equivalent b+b cost pppn = 7200/365/3.5 = 5.64

I'm not sure if there are many b+b's where you can stay for 5.64 per night.

You did ask.

erm,they dont stay in normal holiday B+Bs I can promise you that..itll be 3 or 4 to a room.

They can also stay in private rented at their own expense too....many do. but if the government hands out, then many dont bother and sweat it out spending as normal and we end up with people living in B+B.

properly planned, house sold quick and self provision made, its possible to reasonably survive the loss of job and house.

sit back and let the government take care is a burden on everyone and solves little.

the logic you propose is true for any individual, but, systemically, the logic encourages the state way and therefore costs society much more.

saying that, it seems we do have a system where relying on more than ample benefits to provide a very comfortable live with cable TV, mobile phone and 2 cars is very common....just heard about a case yesterday...my mate is furious...

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How much is a B&B/week? How much is the weekly mortgage payment? My back-of-a-matchbox sums seem to indicate that the mortgage payments might be cheaper...

wont cost anything if the people aim to work again. see above about benefits sapping the will to fend for oneself.

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erm,they dont stay in normal holiday B+Bs I can promise you that..itll be 3 or 4 to a room.

They can also stay in private rented at their own expense too....many do. but if the government hands out, then many dont bother and sweat it out spending as normal and we end up with people living in B+B.

properly planned, house sold quick and self provision made, its possible to reasonably survive the loss of job and house.

sit back and let the government take care is a burden on everyone and solves little.

the logic you propose is true for any individual, but, systemically, the logic encourages the state way and therefore costs society much more.

saying that, it seems we do have a system where relying on more than ample benefits to provide a very comfortable live with cable TV, mobile phone and 2 cars is very common....just heard about a case yesterday...my mate is furious...

No way am I defending a system that rewards the feckless and irresponsible, just pointing out the calculation the housing minister will use when coming to a decision. Maybe they should be more stringent on who gets their mortgages paid. For example, anyone who has mewed and spent the proceeds an cars/holidays etc should not qualify.

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The answer is:

Average mortgage =120k therefore 6% mortgage paid =7200

Average household size = 3.5 therefore equivalent b+b cost pppn = 7200/365/3.5 = 5.64

I'm not sure if there are many b+b's where you can stay for 5.64 per night.

You did ask.

You didn't factor in that the government will be paying the interest at 0.5% back to the bank, not 6%. I make that therefore 50p pppn

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Mike, I doubt I am alone in not bothering to look at your threads because all that will be revealed is a link.

I do not understand why you wont at the very least cut & paste an article's juicy bits!

Though I did make an exception with that 'headline'! :)

Edited by Laura

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erm

Agree with your points - just pointing out it's not a given. Also, you've ignored the issue regarding the banks and what happens to them in the face of mass repos. Personally, I'd go with the idea of helping those with low mortgage-debt and throwing anyone with a mortgage-debt above X to the wolves. This would be more affordable, and would punish those most responsible for the crisis - the over-borrowed and the bankers - without bringing society to its knees.

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It will be most interesting to see what the Coalition will do about this, if anything...

Agree.

Repossessions are a essential component for a HP crash.

However, this time, I think we have many more private BTLers than in the 1990s crash. Repossessions of these BTLers is much less politically sensitive, and will not be avoided by the government - bar via the generally low interest rates.

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Agree with your points - just pointing out it's not a given. Also, you've ignored the issue regarding the banks and what happens to them in the face of mass repos. Personally, I'd go with the idea of helping those with low mortgage-debt and throwing anyone with a mortgage-debt above X to the wolves. This would be more affordable, and would punish those most responsible for the crisis - the over-borrowed and the bankers - without bringing society to its knees.

good points...although they went the other way and made the limit 200K....8 times the average income...these mortgages should be few and far between

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good points...although they went the other way and made the limit 200K....8 times the average income...these mortgages should be few and far between

Isn't the limit supposed to be reduced some time in the future to £100,000? I've read that several times in posts on here, though I can't find any confirmation on the interweb.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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