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Government Calls Crisis Meeting On First-Time Buyers

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House Prices need to return to their long term average affordability.

That means a 50% +. reduction.

But nobody attending this meeting will be representing First Time Buyers.

Industry leaders summoned to crisis meeting on first-time buyers

Mortgage lenders, house builders and industry leaders are being summoned to an emergency meeting to discuss the plight of first-time buyers.

The meeting is being called by the Government which says that first-time buyers have been frozen out, impacting the whole of the rest of the housing market.

Deputy prime minister Nick Clegg said that the crisis is 'hampering social mobility'.

The summit will be held in London on February 15 and chaired by housing minister Grant Shapps.

Problems faced by first-time buyers include the large debts with which they leave university, the high deposits routinely required by lenders, and the increasing likelihood of interest rates rising.

According to the Council of Mortgage Lenders, the proportion of first-time buyers under the age of 30 who are able to buy without parental help has fallen from 63% five years ago to 17%.

In the last three quarters of 2010, the proportion of mortgages granted to first-time buyers with deposits of less than 10% fell to two in 100, down from almost six out of ten in 2005.

The average age of an unassisted first-time buyer is now 37.

Treasury spokesman Lord Oakeshott accused mortgage lenders of being virtually 'on strike' when it came to lending to first-time buyers.

He said: "The bankers' doors are shut to first-time buyers without a big helping hand from the Bank of Mum and Dad."

This is exactly the kind of venue the HPC / Priced Out crowd should crash.

Edited by Dan1

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House Prices need to return to their long term average affordability.

That means a 50% +. reduction.

But nobody attending this meeting will be representing First Time Buyers.

This is exactly the kind of venue the HPC / Priced Out crowd should crash.

+1.

I think the government are getting worried. The crash is on as far as I am concerned and it is going to lay this economy and the banks to utter waste. And what a good naffin thing that will be to clear the system of parasites.

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They need to encourage prices to reduce by atleast 50%, that will cure the problem for FTB and those trading up (and down as it will get the market functioning).

This will then cause a crises for those in negative equity which might be easier to deal with and easier to manage. And hey they got themselves in this position, just because a few thousand people overspent on their property purchase shouldn't mean everyone else should. MEWers and BTLers dug their own hole.

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Wonder if someone will point out to Housing Minister Shan't Prapps MP, that shafting the young in education, debt, zero employment opportunities, and insane housing costs may.... just may.... have hindered their buying ability!

Just a thought.

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Someone will mention that FTB's cannot afford to buy a house on a £6 per hour part time temporay job and that £65 pw JSA is also not enought to purchase and run a home.

The Chairman removing the sliver spoon form his big fat gob , will raise his eyebrows and enquire " do these people not have trust funds? "

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I've written him a letter regarding this meeting. I'll post my reply if I get one.

Perhaps a letter to him explaining that his honorable colleages, David Cameron + Vince Cable consider the market to be in a bubble would be useful

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Id like to see him address his audience with the opening sentence:

"Without the bank bailouts, house prices would have crashed by 60%.............."

And once this 'debt transfer' or thievery becomes widely acknowledged, this, and every successive government can expect to receive two fingers from every First Time Buyer.

What are you going to do to stop it? Shut down the internet? :lol:

I would also like to see him discuss raising CGT on sale of second properties/Raise IR/Tax BTL, which must happen, if only to stop, BTL, snapping up FTB'ers properties again after the HP crash/dereg planning/ Brownfield sites/ Build more social housing. Bring the price of land down etc etc.

If he only discusses options such as shared ownership, and methods of pushing FTB'ers into accepting debt which is not ours, at this meeting.

I'll be changing my opinion on the coalition rather quickly.

If they think they can tread water for the next 4 years, they are not in touch with FTB'ers at all. It may sound trite, but they need to be proactive, not reactive.

We need them to show strong moral leadership.

Edited by Dan1

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It's irrelevant. They can't manipulate the market any more than they have done. Interest rates can't go lower, and unless they give everyone money then there simply isn't the cash around for us to pay any more for cardboard boxes. I believe it has now dawned on them that what they did recently was a temporary fix and it only delays the inevitable. So what is the point of doing anything else to delay it and where will that money come from anyway?

A drop in prices won't really hurt anyone short term, only those who think a house is a retirement fund, and that's the next governments problem. The banks will be fine, people won't go bankrupt en masse so banks will get their money back. Let is slide downwards for two or three years and all will be OK with the majority, only a minority will suffer.

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Wonder if someone will point out to Housing Minister Shan't Prapps MP, that shafting the young in education, debt, zero employment opportunities, and insane housing costs may.... just may.... have hindered their buying ability!

Just a thought.

Burn the heretic!!!

No you don't understand having all that debt before they buy proves they can handle a large amount of debt.

Debt servitude for all.

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That will just make the mortgage payments more unaffordable.

Unless you were suggesting that raising IRs would cause prices to fall to allowing FTBs to buy and people to move to larger properties more easily. Unfortunately saying prices are too high may be accepted but they must not be allowed to fall (too many votes to lose ... and the banks to satisfy). We will need more innovative ways from the government to help pay the high prices; 50 years mortgages, more shared ownership where you can buy 5% now and rent 95%. Special bonuses for bankers that get FTBs to sign away their lives. A stamp duty rebate (ie payment from the government) for FTBs.

House prices will be lower.

Rents will be lower.

Inflation will be lower.

Saving for a deposit will be easier due to the above + interest.

Edited by fellow

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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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