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House Builders And Banks Have Meeting

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Editor of Times is on Fivelive now saying they have learnt that the Council of Mortgage Lenders, Santander, Lloyds, Barrets, Persimon and, I think he said, TW have had a meeting about how to get first time buyers to buy houses.

Apparently they are concerned that people have stopped buying houses. He said The Times learnt that they are thinking of setting up a fund to provide equity to buyers - so sounds like a naff shared ownership scheme IMPO.

I didn't know The Times was still going :D

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Editor of Times is on Fivelive now saying they have learnt that the Council of Mortgage Lenders, Santander, Lloyds, Barrets, Persimon and, I think he said, TW have had a meeting about how to get first time buyers to buy houses.

Apparently they are concerned that people have stopped buying houses. He said The Times learnt that they are thinking of setting up a fund to provide equity to buyers - so sounds like a naff shared ownership scheme IMPO.

I didn't know The Times was still going :D

...sounds like a scam to attract simple sheeple...."equity for buyers"...in other words... let them take the losses.... :rolleyes:

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The housing market has hit the buffers. There is only so much blood that can be squeezed out. Unless they go down the 1% shared ownership, forget it.

How about attracting more BTLers? They were supposed to replace FTBers LOLOLOLOOLOLOLOLOLOLOOL.... Idiots.

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Two vested interests walk in to a bar...

I wonder what concoctions of policy they're going to (try) and put together to rig the market even further?

Hypocrites! The free Market is great when everything is rosy! When the chips are down tho they're quite happy to interfere (in favour of themselves).

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Pour some fertility drugs in the water reservoirs, then wait a few years until the sudden population explosion hits FTB age of 37?

Would that work? Or are they looking for a faster solution?

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Are companies allowed to collude like this? Is it not against Competiton laws? These are pretty strict about what can and can't be said.

I would certainly say it is anti competitive behaviour and against the consumers' interests.

builders!...Drop your prices.

bankers....expect the same.

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Editor of Times is on Fivelive now saying they have learnt that the Council of Mortgage Lenders, Santander, Lloyds, Barrets, Persimon and, I think he said, TW have had a meeting about how to get first time buyers to buy houses.

Apparently they are concerned that people have stopped buying houses. He said The Times learnt that they are thinking of setting up a fund to provide equity to buyers - so sounds like a naff shared ownership scheme IMPO.

I didn't know The Times was still going :D

Me too. Ever since they went offline I thought they had shut down. Oh well. :unsure:

That said, I wonder if anyone at that meeting suggested price (+ credit viability) might be a factor in the supply-demand equation?

The way to bring the market down is to just say no.

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Apparently they are concerned that people have stopped buying houses.

Now why on Earth would that have happened?

Could it just be a combination of people out of work (or switched to part-time pay), lack of jobs for youngsters, and insanely high house prices?

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Apparently they are concerned that people have stopped buying houses. He said The Times learnt that they are thinking of setting up a fund to provide equity to buyers - so sounds like a naff shared ownership scheme IMPO.

Here is bit of 'blue sky thinking' (apologies for the awful 'management speak' phrase!): why don't house builders drop their prices to a level that people can afford? :rolleyes:

Edited by MattW

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So they're setting up a cartel.

Do they need the FSA present to rubber stamp such anti-competitive collusive behaviour or has Osborne already given them the 'nod'.

Edited by Red Karma

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Editor of Times is on Fivelive now saying they have learnt that the Council of Mortgage Lenders, Santander, Lloyds, Barrets, Persimon and, I think he said, TW have had a meeting about how to get first time buyers to buy houses.

Apparently they are concerned that people have stopped buying houses. He said The Times learnt that they are thinking of setting up a fund to provide equity to buyers - so sounds like a naff shared ownership scheme IMPO.

I didn't know The Times was still going :D

You sure it wasn't Mortgage Times?

But this does raise an interesting point. I'd like to know who set up the meeting? The Banks or the Builders?

Clearly without FTBers the Builders are stuffed.

But also so are the Banks. With less new Mortgage Customers they might be losing out (assuming they are making good loans), but also without FTBers the market is more likely to slide and therefore bankrupt the banks.

So it is clear, this is a cartel to drive up property prices.

Edited by Mikhail Liebenstein

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You sure it wasn't Mortgage Times?

But this does raise an interesting point. I'd like to know who set up the meeting? The Banks or the Builders?

Clearly without FTBers the Builders are stuffed.

But also so are the Banks. With less new Mortgage Customers they might be losing out (assuming they are making good loans), but also without FTBers the market is more likely to slide and therefore bankrupt the banks.

So it is clear, this is a cartel to drive up property prices.

No, it was The Times.

In the middle of the night Fivelive interviews one of the Editors from one of the national newspaper each night/morning sometime between 1 AM and 3AM usually. This guy was one of The Times' Editors.

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You sure it wasn't Mortgage Times?

But this does raise an interesting point. I'd like to know who set up the meeting? The Banks or the Builders?

Clearly without FTBers the Builders are stuffed.

But also so are the Banks. With less new Mortgage Customers they might be losing out (assuming they are making good loans), but also without FTBers the market is more likely to slide and therefore bankrupt the banks.

So it is clear, this is a cartel to drive up property prices.

You forgot one. Current Owner Occupiers that want to trade up are stuffed too. Without FTB's, all those people in their tiny one bedroom 'kitchen in the corner of the living room' slave boxes have no hope of trading up and off loading their little rabbit hutch to an even greater fool..... ad infinitum.

dry.gif

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You sure it wasn't Mortgage Times?

But this does raise an interesting point. I'd like to know who set up the meeting? The Banks or the Builders?

Clearly without FTBers the Builders are stuffed.

But also so are the Banks. With less new Mortgage Customers they might be losing out (assuming they are making good loans), but also without FTBers the market is more likely to slide and therefore bankrupt the banks.

So it is clear, this is a cartel to drive up property prices.

So too is the government. The policy is to grow out of difficulty. The economy needs a lot more money (credit) in circulation. This comes from increased debt. The government wants to reduce its debt so the increase has to be personal debt. The amount involved cannot be satisfied by Curry's store cards. It needs to be big mortgages.

Osborne might not be at the meeting but I wouldn't be surprised if there is a teleconference part way through.

p-o-p

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So they're setting up a cartel.

Do they need the FSA present to rubber stamp such anti-competitive collusive behaviour or has Osborne already given them the 'nod'.

The whole point of a cartel is to restrict supply so that prices stay high.

Prices are high, and supply appears to be restricted. Restricting things even more might not increase monopoly profits, even monopolies have an optimum price level.

What they seem to want to do is increase prices and selling volumes. A wise Saudi Oil Minister was once sacked for telling the King that you cant do both.

I wonder if there really is such a meeting going on. Banks cant lend anymore, because they must be unsure that they would get yet another bailout without a revolution if they try and pull that stunt again. Only reasonable risks are being taken on. As for Home Builders, I am not sure I understand them. They can take all the market they want just by selling for a bit less than those around them, with little risk that those stuck in negative equity homes are going to undercut them.

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A "secret" :P meeting to help FTBers was mentioned by Peston on ITV news today

itv.com/news/uk-nation-of-renters39133/

so it's likely the housebuilders/banks meeting. I wasn't listening that closely because it was the same old spin but they said they were looking into 95% mortgages with shared equity or something, The main thing they were discussing was that the UK is becoming a nation of renters "just like other countries". Only mentioning in passing about how high UK house prices are by saying that FTBers can't afford to buy them and no mention that other countries people still rent even though their house prices are much much cheaper.

The discussion with Peston mentioned the usual stuff e.g. not enough mortgages, deposits have to be high and so on.

I thought Peston looked most uncomfortable putting out the usual VI stuff.

At any rate the commentator invited comments on the subject at

facebook.com/itvnews

Edited by billybong

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Hah. what a scam, keep people surviving by the skin of there teeth for years whilst equity vanishes but rates remain low to keep them afloat to protect themselves, then years down the line hike the rates before the next boom happens to force lots of lovely repos that will be ready for proffit taking.

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It makes no sense to buy a house now. Most seem to have realised buying a house is no longer a cash machine. The price will fall; you have maintenance, no flexibility and become a slave to the bank. Rates can only go up and push prices down further. Spending your 30k savings and taking on massive debt is madness for most.

Mortgage approvals are collapsing, the only way to get transactions going is for prices to fall to a more reasonable multiple of income. There has to be some incentive for FTB to bother taking on the massive disadvantage that is home ownership. The VI propaganda from the Express etc will not be enough anymore.

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mmm.... average age of first time buyer 37.... 50 year mortgage... mmm...

And what about the extra 60bn of interest only loans written in the last year, for repayment presumably on death, or never?

and hopeful FTBs soon to be saddled with around 60k of unpayable student debt per person which finally gets wiped out at age 47. Everything is running on loans that have no realistic prospect of repayment. In that context, the banks may well decide to go for 95+% IO loans for FTBs, indefinite forbearance on payment defaulters, and collusion to maintain HPs at current levels to avoid exposing the true horror of their balance sheets.

It's not just Greece that is "reprofiling" its debts. This is going on quietly throughout the UK economy.

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  • 284 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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