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Shapps' Official Press Release About Yesterday's Meeting

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Shapps' official press release about yesterday's meeting.

LINK: http://www.communities.gov.uk/news/corporate/1845028

Twitter: http://twitter.com/#!/CommunitiesUK (Incidentally, this Twitter thing may be very useful, to put some pressure on him.)

Corporate * Newsroom * Press notices * Grant Shapps:

www.communities.gov.uk

Grant Shapps: More help on the way for first time buyers

Published 15 February 2011

Housing Minister Grant Shapps today called on key players in the housing industry to work more closely together to help aspiring first time buyers get a foot on the property ladder.

Leading industry figures representing house builders, lenders, insurers, councils and consumer groups attended a summit today held by Mr Shapps, to discuss how they could step up their efforts to help young people who aspire to own their own home.

Ministers called the meeting so there could be a frank and open discussion about all the issues. Practical work that will now be taken forward includes:

* working with homebuilders and lenders to understand the current barriers to the availability of mortgages, and encouraging them to devise new mortgage products that address the challenges faced by first time buyers - such as innovative schemes for parents to support their children into home ownership - for example, the Lloyds Lend a Hand scheme or the Hitachi loan deal, or the new mortgage guarantee scheme launched today by Taylor Wimpey

* increasing new and creative local approaches to shared ownership or equity loans - there are a number of providers looking to expand or facilitate the expansion of the shared ownership or equity loan provision; and

* exploring the barriers to the take-up of mortgage insurance, and looking at the role of mortgage indemnity guarantees for increasing lending to first time buyers.

A key issue to emerge from the meeting is that there is a communication problem between different sectors of the housing industry. Mr Shapps said better communication within the housing industry, including building on the work of the Home Finance Forum, would be vital to helping first time buyers.

Housing Minister Grant Shapps said:

"I called on key figures from across industry to come together today, because we must do more to help aspiring first time buyers - the average age of the first time buyer with no support from their family is now 37, and there are 1.4 million households who aspire to own a home but are simply unable to do so because of house prices and mortgage availability.

"I wanted to hear a first hand account of the problems the sector faces, but I also wanted to knock heads together so the needs of young people who want to buy a home are put first. The Government is working with industry to improve the availability of mortgages - but there also needs to be a much more unified effort from across the board to work together, so we can ensure that young people are not locked out of the housing market."

Twitter: Keep up to date with the Department by following us on Twitter (external link). http://twitter.com/#!/CommunitiesUK

And news about the meeting:

http://www.guardian.co.uk/money/blog/2011/feb/15/first-time-buyer-summit

First-time buyer summit lacks crucial representation

Is it odd that first-time buyers aren't represented at a summit held in their name? Not really. That would upset the ill conceived status quo of inflated prices and vested interests

http://www.bbc.co.uk/news/business-12469655

http://www.independent.co.uk/news/business/news/no-easy-fix-to-help-firsttime-buyers-2216243.html

http://www.ft.com/cms/s/0/cc8b5e7a-390e-11e0-b0f6-00144feabdc0.html#axzz1E8bLpFxV

http://www.whathouse.co.uk/news/No-quick-fix-for-first-time-buyers-733

http://www.insidehousing.co.uk/news/development/shapps-urged-to-support-mortgage-lending/6513683.article

Edited by Tired of Waiting

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Bottom line: The government want to work with the banksters to "help" FTBs buy overpriced houses to help keep the Ponzi going and avert a national economic disaster if the HPC proves to be severe.

Same agenda as Merv. Same agenda for the Banksters. Same agenda for the BTL-entrepreneurs,

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Bottom line: The government want to work with the banksters to "help" FTBs buy overpriced houses to help keep the Ponzi going and avert a national economic disaster if the HPC proves to be severe.

Same agenda as Merv. Same agenda for the Banksters. Same agenda for the BTL-entrepreneurs,

Apparently so. Unless he is just saying that, for political reasons. I have no idea.

The Guardian had the best angle: no FTBs representation in the meeting.

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not sure he said anything at all in the press release other than he wanted to hear first hand what he must already have known.

how many thousands were spent in wages to fund this "meeting of minds"?

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because of house prices and mortgage availability

At least he mentioned prices.

Obvious answer is for builders to build more and sell more at a lower margin i.e. cheaper prices. Unfortunately they seem to want to price people out of the market and make their profit for nothing i.e. build less and sell less.

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It`s all fiddling around the edges and flag waving to say we are doing something it will end up with another shared ownership scam or some sort of deferred payment scam or more worryingly the tax payer will be insuring /guarantying the hard up FTB overpriced mortgage

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It's a bit like all the inflation nonsense. They know the solution, we know the solution, but no one knows what the effect of the solution would be... so they spaz around, scratching their heads, pretending to be thick and going "la la la, I can't hear you" when anyone tries to point this out.

Christ, I wish they'd at least credit us with some intelligence and be honest...

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I wanted to hear a first hand account of the problems the sector faces, but I also wanted to knock heads together so the needs of young people who want to buy a home are put first.

Really?

That might have been more believable if you had allowed some of the young people / FTBs / their representatives to attend.

All politicos smile and lie, but the thing about Shapps is - he isn't even very good at that.

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All the new builds in my locality seem to be priced up in acccordance with the current housing stock, the builders must be making a fortune! Rumour has it most are sold.

http://www.bellway.co.uk/new-homes/east-midlands/sunbeam-gardens

http://www.taylorwimpey.co.uk/newhomes/West+Midlands/TheChesterfields/

Both of the above developments are on brownfield, the old Peugeot stoke plant and right next door to one of coventrys many sink estates. The level of break-ins will be horrific!

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The only reason this meeting was held was to boost "housing minister Grant Shapps" media profile so he can get a better job next cabinet reshuffle

In a cabinet full of them he seems a particularly odious little sh1t

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First thing I noticed too. That is one more time than the entire Labour Government did in 13 years of Office. Well apart from Broon telling us all House prices would not get out of control. :lol:

I really do get the feeling the present lot know what is coming and are giving little snippets here and there. Whilst at the same time trying to placate all the VI's who desparately want to go back to the 'Good old days'.

Maybe not but I really do get that feeling. Maybe just wishful thinking. Hope not.

Help is on its way

This is the innovative, new 'Together' mortgage.

You, your working spouse, plus your mums and dads, plus a healthy insurance premium on top . . together . . . can buy a house!

(Single people or those without plenty of mums and dads need not apply.)

Edited by copydude

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At least he mentioned prices.

Obvious answer is for builders to build more and sell more at a lower margin i.e. cheaper prices. Unfortunately they seem to want to price people out of the market and make their profit for nothing i.e. build less and sell less.

First thing I noticed too. That is one more time than the entire Labour Government did in 13 years of Office. Well apart from Broon telling us all House prices would not get out of control. :lol:

I really do get the feeling the present lot know what is coming and are giving little snippets here and there. Whilst at the same time trying to placate all the VI's who desparately want to go back to the 'Good old days'.

Maybe not but I really do get that feeling. Maybe just wishful thinking. Hope not.

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Help is on its way

This is the innovative, new 'Together' mortgage.

You, your working spouse, plus your mums and dads, plus a healthy insurance premium on top . . together . . . can buy a house!

(Single people or those without plenty of mums and dads need not apply.)

They had this sort of scheme in japan...just before their housing market went into a massive 20 year (and running) bear market

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First thing I noticed too. That is one more time than the entire Labour Government did in 13 years of Office. Well apart from Broon telling us all House prices would not get out of control. :lol:

I really do get the feeling the present lot know what is coming and are giving little snippets here and there. Whilst at the same time trying to placate all the VI's who desparately want to go back to the 'Good old days'.

Maybe not but I really do get that feeling. Maybe just wishful thinking. Hope not.

As well as 'House prices would not get out of control' comment, Brown did, at a later date (to justify the boom), boast that house prices had grown 180% (can't remember the exact figure), but he made out that this new found, illusory wealth was a good thing. Too bad if you were priced out (like most normal people), the government could always help with 'affordable' houses (i.e., more debt prestidigitations). There is a four-letter word I'd like to use here... (but I won't ;) ).

Edited by tinker

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At least he mentioned prices.

Yes, I noticed that too. A very good sign, I think / hope.

Obvious answer is for builders to build more and sell more at a lower margin i.e. cheaper prices. Unfortunately they seem to want to price people out of the market and make their profit for nothing i.e. build less and sell less.

All the new builds in my locality seem to be priced up in acccordance with the current housing stock, the builders must be making a fortune! Rumour has it most are sold. (...)

Roger Bootle had a very good point about that. he wrote:

(...) In the short run at least, the supply of housing is fixed. An increase in mortgage lending will only generate higher house prices.

What's more, if the Government makes special provisions for particular groups in society that it believes deserve support, such as first-time buyers or so-called "essential" workers, rather than improving the overall availability of housing, this only shuts out others deemed to be less worthy.

Similar factors apply to the debate about using prefabricated parts to reduce building costs. Worthy though the intentions are, this effort is doomed to failure.

For without a change in the supply of houses, or in buyers' preparedness to buy, all that lower construction costs will do is to increase the price of land, leaving house prices broadly unchanged.

It is supply, not demand, that determines the availability of property. Demand determines the price.

http://www.google.co.uk/search?hl=en&safe=off&rlz=1B3GGLL_en___GB407&tbs=nws%3A1&q=roger+bootle+policies+german+land+&aq=f&aqi=&aql=&oq=

(... well, in the short term. In the long term, (it takes years to build a few million homes) supply will also bring average prices down.)

But the main point here is that the price of a finished house (1) is determined by the market, and he building costs (2) are fixed too. So, if a land owner gets planning permit, he will auction this land, and builders will bid on it, considering 1 and 2 above. If house prices are high, builders top limit for the land will be higher. If house prices are low, their top limit will be lower. Therefore, when house prices go up or down, the main change is on planning gain, not on builders profits.

(Of course, in many cases builders are also land owners. I am just separating the 2 businesses, to understand the process, and profits better.)

.

Edited by Tired of Waiting

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It's a bit like all the inflation nonsense. They know the solution, we know the solution, but no one knows what the effect of the solution would be... so they spaz around, scratching their heads, pretending to be thick and going "la la la, I can't hear you" when anyone tries to point this out.

Christ, I wish they'd at least credit us with some intelligence and be honest...

I think they know house prices are too high, but since 70% of UK houses are owner occupied, and the the vast majority of these house owners don't want price falls, politicians can't say that out loud.

Sad really. Selfish, and collectively irrational. Crazy, stupid really.

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The only reason this meeting was held was to boost "housing minister Grant Shapps" media profile so he can get a better job next cabinet reshuffle

(...)

Very interesting point Neverland.

He probably wants to be a cabinet minister, and then ... who knows? He is young - Prime Minister some day?

I bet he believes he is good enough for it. :)

.

.

.

Jeez... if Brown made it, anything is possible! :(

Edited by Tired of Waiting

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I think they know house prices are too high, but since 70% of UK houses are owner occupied, and the the vast majority of these house owners don't want price falls, politicians can't say that out loud.

Sad really. Selfish, and collectively irrational. Crazy, stupid really.

If house prices fell it would be cheaper for them to buy a larger house

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First thing I noticed too. That is one more time than the entire Labour Government did in 13 years of Office. Well apart from Broon telling us all House prices would not get out of control. :lol:

I really do get the feeling the present lot know what is coming and are giving little snippets here and there. Whilst at the same time trying to placate all the VI's who desparately want to go back to the 'Good old days'.

Maybe not but I really do get that feeling. Maybe just wishful thinking. Hope not.

Yes, i think they know too.

Remember a couple of weeks ago, all 4 main coalition politicians mentioned the house "boom" or "bubble"? Within a few days from each other? Cameron, Clegg, Osborne and Cable. There is definitely something happening.

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If house prices fell it would be cheaper for them to buy a larger house

I know. But they don't get it. Though to be fair that would only benefit people upgrading, not downgrading.

Besides, many think their houses are their pensions. And they have a lot of dreams and plans dependent on it. These people will lose their dreamed future. Hard.

.

Edited by Tired of Waiting

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Shapps whole concept is flawed from the outset.

The goal is assumed to be 'getting on the ladder'.

Those who need help are assumed only to be 'buyers'. (The operative word in FTB.)

But not everyone needs nor desires to buy. Not everyone prefers an unaffordable house as a speculative investment, as opposed to somewhere affordable to live.

After the war, housing was was universally recognised as a social need. That's why there was council housing, housing associations, prefabs and, in huge swathes of Europe, plattenbau. Ugly, maybe, but opportunities nevertheless for an affordable home.

In the 1950s, Governments didn't come along after the rubble of the war and say, 'hey, what you all need is some innovative, mega-debt products'.

The social wreckage of HPI is actually worse than wartime. Sure, it was common for married couples to start off at the parent's place, even with babies. But for heaven's sake, for one or two years . . . not until they were 37, maybe forever.

There's a kind of lifelong homelessness now that many people anticipate.

Needless to add, the report doesn't address the dire consequences of those issues.

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The point of the meeting was to get this stuff into the media. There was no need to get these people together, the problems are well known, there was no need to make this particular meeting public when so many are not, unless of course, that was the point.

Why are they doing it? To let us know they at least appreciate the fact there is a problem? That would be a start. Maybe they know just how many people are considering alternative countries and want to be seen to be doing something. Who knows. But I think that was the point, to get it in the media. Look, we're doing something. Or maybe later, look, we saw it coming. Or maybe even, yeah, we crashed the market, we're in control.

?

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  • 285 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% +
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      • up 5%



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