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The F T Joins H P C!

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The FT has taken up the definitive HPC position in today's LEX column.

FT_24_March_2011_Budget Special_Lex_Housing_Subsidies.JPG

I haven't posted the whole article. I think we should all go out and buy today's FT budget special as a thank you present to the FT, welcoming them to this most exalted economic club.

Hooray for the FT! :D

(And long live Merryn Somerset Webb, their first mini-dabbler.)

Is it just me or does that sound more bullish than bearish?

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The FT has taken up the definitive HPC position in today's LEX column.

FT_24_March_2011_Budget Special_Lex_Housing_Subsidies.JPG

I haven't posted the whole article. I think we should all go out and buy today's FT budget special as a thank you present to the FT, welcoming them to this most exalted economic club.

Hooray for the FT! :D

(And long live Merryn Somerset Webb, their first mini-dabbler.)

Where was the FT's mention of massive subsidies for the housing market that are also distorting it?

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The government would be stupid to allow a HPC before they have sold there share of the banks off. This will happen just before the next election so crash will be full steam ahead in 4 years or so!

Edited by Conrad

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The government would be stupid to allow a HPC before they have sold there share of the banks off. This will happen just before the next election so crash will be full steam ahead in 4 years or so!

That would be a disastrous result for them. How to loose an election in one easy step. Lets get it out the way now.

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Imagine a land where house price increases were not expected (and falls were not feared), where home ownership was considered a lifestyle choice rather than an investment and where demand, not financial conditions, set the pace of new constructions.

What a great quote!

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That would be a disastrous result for them. How to loose an election in one easy step. Lets get it out the way now.

Not really its how to win an election. Its almost too late now to start a HPC. Why not just sell off the banks in a few years create a boom with the revenues recieved win said election then crash the market?

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The FT may be on our side BUT... they also acknowledge that the Govt has no plans to do anything about house prices.

Which is more important? FT coming on HPC board or the realisation that NO UK Govt will do anything about house prices.

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Which is more important? FT coming on HPC board or the realisation that NO UK Govt will do anything about house prices.

I don't want the UK govt to do anything about HPs except get out of the bloomin way!

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Osbourne's efforts to prop up builders and BTL yesterday were the last breaths of a dying cause.

It's over now - unless the economy picks up bigtime, which it clearly isn't going to. Big falls in real terms, with limited falls in nominal terms, are the recipe to protect the banks from going under (again) and ensure the middle classes keep the plates spinning somehow until their vote is needed at the next general election.

5% inflation is the key ingredient for this.

Edited by Diet Cola Addict

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The FT has taken up the definitive HPC position in today's LEX column.

FT_24_March_2011_Budget Special_Lex_Housing_Subsidies.JPG

I haven't posted the whole article. I think we should all go out and buy today's FT budget special as a thank you present to the FT, welcoming them to this most exalted economic club.

Hooray for the FT! :D

(And long live Merryn Somerset Webb, their first mini-dabbler.)

...yes a good article ...Lex states near the opening of the piece Governments should not encourage the purchase of homes with a large mortgage as a route to building wealth...of course both Governments or Parliament as a whole are so illiterate financially they would not understand this and suspect few read the FT.....wonder what Vince thought?.....he is kept well out of the way these days ...pity in many ways .... <_<

Edited by South Lorne

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Big falls in real terms, with limited falls in nominal terms, are the recipe to protect the banks from going under (again) and ensure the middle classes keep the plates spinning somehow until their vote is needed at the next general election.

5% inflation is the key ingredient for this.

But haven't we got the "wrong sort of inflation"? The ability to pay is being eroded because incomes are falling.

And with regard to short, sharp pain as opposed to long, drawn-out dull pain, isn't the danger with the latter that external events turn the latter into the former, so that you get both sorts of pain, and not at a time of your choosing?

Peter.

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But haven't we got the "wrong sort of inflation"? The ability to pay is being eroded because incomes are falling.

.

...yes we have and as the Financial Times states it will take a house crash to fix it and allow an economy which does not see house price rises as a norm.... buying would be a lifestyle choice rather than a punt....and where renting is a norm similar to Germany ...we probably need to tweak our renting regulations a bit to cater for such utopia.... :)

Edited by South Lorne

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I thought (FreeTrader's excellent thread y'day) that we were already -27.5%, real terms, into it?

When the last bull turns bear an' all that................

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I thought (FreeTrader's excellent thread y'day) that we were already -27.5%, real terms, into it?

When the last bull turns bear an' all that................

..'when my blue moon turns to gold'...EP

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The FT may be on our side BUT... they also acknowledge that the Govt has no plans to do anything about house prices.

Which is more important? FT coming on HPC board or the realisation that NO UK Govt will do anything about house prices.

The government, like the last one, are doing something about house prices - they are propping them up and continuing to favour the unsustainable acquisition of debt as an economic model.

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The government, like the last one, are doing something about house prices - they are propping them up and continuing to favour the unsustainable acquisition of debt as an economic model.

...they are trying to prop up ....the market will prevail and crush their ineptitude... :rolleyes:

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Osbourne's efforts to prop up builders and BTL yesterday were the last breaths of a dying cause.

Or he knows it's futile but had to be seen to do something. At least this way, any extra cost to the government will be based on private companies investing considerably more on building projects. Whether it's right or wrong, doing nothing to help house prices will make the coalition very unpopular with a large group of voters.

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Is it just me or does that sound more bullish than bearish?

This is like deja-vu all over again!

I think you and I must go for a drink. Clearly we'll be ordering pint mugs of bitter, served half empty. :D

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Quite this is why they are extending SMI for another year ... and the FTBs can have say another 25k of debt to add to their 30k uni debt. There must be some other things they can do to keep prices up. I know let's get people buying part of a house instead of a whole one and get parents to release money from their property. All we need now are 125% mortgages (guaranteed by the taxpayer) and extended terms, 50 year mortgages should do the trick.

Just make it interest only, even better! Hell, why not allow the student loans company to issue mortgages to graduates?

Edited by RichB

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Just make it interest only, even better! Hell, why not allow the student loans company to issue mortgages to graduates?

...repayable by the time they retire at 80.... :rolleyes:

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The FT may be on our side BUT... they also acknowledge that the Govt has no plans to do anything about house prices.

Which is more important? FT coming on HPC board or the realisation that NO UK Govt will do anything about house prices.

BOE more important the government. Gov are relaxing planning laws, trying to make the banks more responsible. They could put CGT on all HPI related gains not just second homes to give things a push.

BOE Interest rates / credit support prices, BOE need to raise interest rates to really put pressure on prices. Once sentiment turns falls become entrenched and the market will probably overcorrect similar to 93-96~ period , average price to £100-120k~ in 5 years.

Imagine a country where we did not waste vast swathes of our income on totally unproductive rent / mortgages supporting giant banking profits. Going to happen, eventually.

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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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