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Government Stance On First Time Buyers

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Letter From MP

Thought I would share this with the forum in case it's of interest.

Around a week ago I wrote to my MP expressing discontent at the recent decision to write off up to 25% of BTLers mortgages at our expense as per the FT article here: Linky

Several of the UK and Irish banks that received government bail-outs are offering to write off up to 25 per cent of a mortgage debt for professional landlords and developers – just to encourage them to move to new lenders.

I didn't actually request or expect an answer, but in the event the following letter duly arrived.

Naturally, it doesn't address any of the points I raised.. but what it does offer is a copy of the governments current policy on 'helping' FTBers.

Highlights:

Shared Ownership Schemes

Trying to keep interest rates low to help FTBers

Trying to offer FTBers as much access to debt as possible

Increasing Housing Supply

Yawn.

Anyway.. in case you want to read it..

governmenthousingpolicy.jpg

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Why hide the MP's name?

Anyway, it is perfectly pleasant unlike my local MP who can hardly be bothered to respond to anyone (Tory).

Pay peanuts, get monkeys.

They need to up their pay, reduce their number by 50%

I was embarrassed for him.. especially given that they quite obviously speed-read my letter.. picked out the words "First Time Buyers" and presumably sent out the standard mail-merged letter they send to every FTBer complaint ( In fairness I expect most of them say "why won't the banks lend me 1600 times my salary.. blah blah blah").

As you say, at least they bothered to respond.. and it did come on nice paper in a sexy envelope stamped with "House Of Commons".

As for the pay part.. I actually agree. Although I'm sure most wouldn't.

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Well, that response is a total disgrace. There is no logic anywhere in that letter.

1: No intelligent FTBer is wanting to see low Interest rates. Its not the IR thats the problem, its the price.

2. Shared ownership is a total con, designed purely to help the vendor sell at enormously overvalued prices.

3. With the millions on the waiting list for social housing, he/she is advocating more social housing to be released into owned or part owned. How?

4. Deficit reduction, as a means of getting credit flowing again. Huh? So he/she means, we'll gut all our public services in order to keep giving every penny to the banks, so that they can keep pumping up our house prices. Yeah, that sounds sustainable!

Whoever that MP is, he or she is obviously a total moron. Totally incapable of grasping what the problem is.

I really thought, by now, idiots like this MP would have woken up. Staggering.

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Stock answer. That's exactly what I got when I raised the point of high house prices and the plight of FTBs six months ago. The usual rubbish. Meaningless drivel of no relevance.

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Whoever that MP is, he or she is obviously a total moron. Totally incapable of grasping what the problem is.

I really thought, by now, idiots like this MP would have woken up. Staggering.

Bit strong.. I would say more like towing the party line.

That's why I saved him the humiliation of having his name scrawled across it.

Everything designed to 'help' FTB's always seems to be an attempt to prop up prices. FTB's want one thing and one thing only, LOWER PRICES.

Exactly my first thoughts. I don't think the government's actual attitude to first time buyers is quite as bad as he suggests because if it was we wouldn't be seeing things like the cuts to HB driving prices lower.

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Bit strong.. I would say more like towing the party line.

That's why I saved him the humiliation of having his name scrawled across it.

Exactly my first thoughts. I don't think the government's actual attitude to first time buyers is quite as bad as he suggests because if it was we wouldn't be seeing things like the cuts to HB driving prices lower.

You may say that my thoughts are a bit strong. But after a decade or more of hearing that sort of "low interest rates helping FTBer" rubbish. Plus talk of shared ownership being the answer. I find it a bit galling to hear it yet again, from a coalition government member, and since the complete collapse of the banking system.

Have they learnt nothing? If people like this MP want lending to go nuts again to support these prices. Lets insist that they ALONE bailout the banks next time with their own money, not taxpayers.

Why are you "saving him from humiliation" by not naming him? He's an MP, involved in the setting of economic policy, and he's obviously misunderstanding the problem. He should be called up on it.

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Letter From MP

Naturally, it doesn't address any of the points I raised.. but what it does offer is a copy of the governments current policy on 'helping' FTBers.

Highlights:

Shared Ownership Schemes

Trying to keep interest rates low to help FTBers

Trying to offer FTBers as much access to debt as possible

Increasing Housing Supply

Yawn.

Anyway.. in case you want to read it..

governmenthousingpolicy.jpg

Just another interchangeable muppet.

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As for the pay part.. I actually agree. Although I'm sure most wouldn't.

NO we don't.... we need to put all of our MPs to the sword..

Then put in Engineers and technocrats instead of lawyers and theives..... The PRC of China... although it is not an ideal fascimilie for comparisom. Have a look at the entire PRC leadership ALMOST all of them are Engineers and scientists.

In the UK? Lawyers, USA? Lawyers...

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Bit strong.. I would say more like towing the party line.

That's why I saved him the humiliation of having his name scrawled across it.

Exactly my first thoughts. I don't think the government's actual attitude to first time buyers is quite as bad as he suggests because if it was we wouldn't be seeing things like the cuts to HB driving prices lower.

Its to toe the line. Not tow.... i.e. you put your toes and stand in line in support of the policy or thing which is going on. Towing the line means the opposite!

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You may say that my thoughts are a bit strong. But after a decade or more of hearing that sort of "low interest rates helping FTBer" rubbish. Plus talk of shared ownership being the answer. I find it a bit galling to hear it yet again, from a coalition government member, and since the complete collapse of the banking system.

Have they learnt nothing? If people like this MP want lending to go nuts again to support these prices. Lets insist that they ALONE bailout the banks next time with their own money, not taxpayers.

Why are you "saving him from humiliation" by not naming him? He's an MP, involved in the setting of economic policy, and he's obviously misunderstanding the problem. He should be called up on it.

I agree with all of the above. The part I find crazy is that everybody seems to think the key to growth is mortgage lending. As if houses weren't over valued in the first place. How about letting the bubble pop and investing/lending to infrastructure projects and businesses? It's as if housing "growth" is the only form of growth we know. Very sad.

I doubt this guy sets any economic policy.. he was parachuted in.. won with a narrow margin and professes to model himself on a Labour MP (as well as being involved with the obligatory childrens charities and homes for disadvantaged kittens). He was once an engineer though..

Its to toe the line. Not tow.... i.e. you put your toes and stand in line in support of the policy or thing which is going on. Towing the line means the opposite!

Toe eh? I guess I put my foot in it.

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I agree with all of the above. The part I find crazy is that everybody seems to think the key to growth is mortgage lending. As if houses weren't over valued in the first place. How about letting the bubble pop and investing/lending to infrastructure projects and businesses? It's as if housing "growth" is the only form of growth we know. Very sad.

I doubt this guy sets any economic policy.. he was parachuted in.. won with a narrow margin and professes to model himself on a Labour MP (as well as being involved with the obligatory childrens charities and homes for disadvantaged kittens). He was once an engineer though..

But all MP's are involved in setting economic policy. As they all (should) vote in the house on every bill, including the budget. Not to mention, that they must hold the executive to account.

I think my point is, that these views really need to be confronted, and shown up as the illogical VI nonsense they are.

Just say to him

Low interest rates = high house prices

High interest rates = low house prices

Although, if he's a vested interest homeowner this may only harden his view.

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I agree with all of the above. The part I find crazy is that everybody seems to think the key to growth is mortgage lending. As if houses weren't over valued in the first place. How about letting the bubble pop and investing/lending to infrastructure projects and businesses? It's as if housing "growth" is the only form of growth we know. Very sad.

Agreed. They know the country relies on a buoyant housing market but won't/can't take the measures needed to get one.

It's the same strategy of counter flooding a sinking ship. It initially stops the ship being swamped but the sucker is still going down. My relatives place of work is laying off more lawyers shortly solely from the reason of a lack of conveyancing. This economy will not recover until we swallow the pill. Allowing rampant inflation off the leash is not fixing anything as far as I can see.

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Just say to him

Low interest rates = high house prices

High interest rates = low house prices

Although, if he's a vested interest homeowner this may only harden his view.

He has a surgery every Friday.. I might just do that.

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Agreed. They know the country relies on a buoyant housing market but won't/can't take the measures needed to get one.

It's the same strategy of counter flooding a sinking ship. It initially stops the ship being swamped but the sucker is still going down. My relatives place of work is laying off more lawyers shortly solely from the reason of a lack of conveyancing. This economy will not recover until we swallow the pill. Allowing rampant inflation off the leash is not fixing anything as far as I can see.

As far as I can tell it appears to be encouraging people to get out of currencies and into foreign assets and commodities, fuelling further domestic inflation and capital flight. Great.

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Letter From MP

I used to work as an MP caseworker, here is how it worked.

There will be 'casework' letters and 'policy' letters.

The casework letters came to me to do some work on, the policy letters went to an intern who would work out what the subject was and tap into a policy database and send you the stock response.

If you want to get anywhere you need to considered as casework.

Here are some tips

1. Visit the MP at their surgery. Some MPs do a drop in surgery some do them by appointment.

2. Have a snappy point to make and a clear and concise action that you want the MP to do. They can't force the market to revert to 3x verified income lending so be realistic. MPs powers are really quite limited so you probably have the following options

Signing EDMs (Early Day Motions) is a useful one. They don't actually do anything in terms of legislation changes but they get an issue on record.

Petitions are also good. MPs have to accept petitions whether they agree with them or not. They get put in the speakers woolsack behind his seat, and some for of wonderful thing happens that enhances democracy. Either that or they just get shredded.

Writing to a government department. Milage may vary depending on party colour of your MP. A lot of my work was drafting letters along the lines of "my constituent would like you to do this" and then passing on the reply, which was usually "tough tits".

3. Make it clear you will be happy to make a press statement if they do something. MPs like to have cases they can spin as a win in the local press.

4. Ultimately your best chance of having an MP on your side is to have a persuasive argument and convince the MP to take up your crusade. This will be rather enhanced if you can plausibly suggest their actions will influence a large number of people who may be willing to provide votes. Back in the old days you might have found one that took up your cause because it was the right thing to do, but good luck with that these days.

Well that didn't turn out as positive as I'd hoped. Anyway hope that gives you a few starting ideas.

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-SNIP-

Well that didn't turn out as positive as I'd hoped. Anyway hope that gives you a few starting ideas.

Thanks Lambie.. I didn't have high hopes, I was hoping if anything he might just read it and perhaps some of it would resonate.

At the end of the day you can understand that an MP / Party wouldn't want to publicly jump on the band wagon of lower prices.. too much of the population have too much tied up in it for it to ever be a popular vote winner.

I might still go to the surgery and try to meet him face to face. I'm fed up of sitting here just complaining about it.. I want to be proactive.

It's not a selfish crusade.. there's a whole generation of us who aren't being represented.

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Its to toe the line. Not tow.... i.e. you put your toes and stand in line in support of the policy or thing which is going on. Towing the line means the opposite!

'Toe the line' comes from the days of bare-knuckle fighting. A line was scratched in the sand on the 'ring' floor, and the fighters commenced toe to toe on the line. It means obeying the rules.

'Coming up to scratch' comes from the same source. A line was scratched in the sand, and a fallen fighter had to get upright and 'toe the line' before being allowed to continue. 'To come up to scratch' was to show your continuing fitness to be involved in the bout.

Edited by juvenal

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As I thought. Democracy is dead. The mp you probably didn't vote for from a party you probably didn't want in power either doesn't want to listen and help or, more likely, is not able to!

And they wonder why there is militant student protests!

What we need to do is make a placard and take it in turns to march up and down in front of parliament, small enough not to worry the police, and quirky enough to interest the media.

Actually if I did speak to my mp again, you say I need to make it clear what I want him to do. Well I would want him to undertand my arguments and believe them. Then talk to his colleagues and then when enough of them understand then something might happen.

I'll just go back to my cuckoo in the cloud shall i?

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As I thought. Democracy is dead. The mp you probably didn't vote for from a party you probably didn't want in power either doesn't want to listen and help or, more likely, is not able to!

To be fair, democracy involves MPs listening to the wishes of the thousands of people who voted them into the office, not so much individual letter-writers.

In this case the home-owning majority are always going to outvote the FTB minority, and unfortunately that is democracy in action. :(

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What we need to do is make a placard and take it in turns to march up and down in front of parliament, small enough not to worry the police, and quirky enough to interest the media.

No good either I'm afraid. Today there was a protest in London by disabled people protesting against the proposed cuts to the Disability Living Allowance. According to twitter some of them were kettled.

Didn't get a mention anywhere on the news.

Actually if I did speak to my mp again, you say I need to make it clear what I want him to do. Well I would want him to undertand my arguments and believe them. Then talk to his colleagues and then when enough of them understand then something might happen.

I'll just go back to my cuckoo in the cloud shall i?

It is regrettable. I ultimately left because much of what I did was pointless paper shuffling. I won a few battles (with Home Office and HMRC) but not really enough.

But there is always hope. As Old Holborn is fond of saying, there are 650 of them, and 61 million of us.

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Politicians are too busy feathering their own nests to concern themselves with FTBs. They have to go with the flow of the world today that business employs the cheapest labour so making more profits and paying the Exchequer their backhander in more taxes so they can p**s that money away.

Wake up and smell the true aroma of the coffee and you will see more clearly, fight for justice and you will be crushed Wapping style. ;)

Been there, tried it with true sincerity and got a bang on the head for my troubles.

The real problems are blind to the populace of the UK, if hit by a 44 ton juggernaut they would not see it coming. :rolleyes:

The attitude I`m earning a fortune and you peasants on lower salaries should sink and disappear not to be heard of again.

That philosophy was started by Thatcher, continued by Major, taken on by Blair, and an even bigger joke by Brown, and off we jolly well go again by those celebrated sixth formers Cameron and Clegg.

It is a no win situation. :(

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Letter From MP

Thought I would share this with the forum in case it's of interest.

Around a week ago I wrote to my MP expressing discontent at the recent decision to write off up to 25% of BTLers mortgages at our expense as per the FT article here: Linky

I didn't actually request or expect an answer, but in the event the following letter duly arrived.

Naturally, it doesn't address any of the points I raised.. but what it does offer is a copy of the governments current policy on 'helping' FTBers.

Highlights:

Shared Ownership Schemes

Trying to keep interest rates low to help FTBers

Trying to offer FTBers as much access to debt as possible

Increasing Housing Supply

Yawn.

Anyway.. in case you want to read it..

governmenthousingpolicy.jpg

I think from now on and until someone is immediately stoned to death for uttering the words 'property ladder', the property market is a bona fide bear market. That will be the key turnaround indicator. Considering how deep this fallacy is ingrained in the culture I suspect it's going to take 30 years.

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  • 312 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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