Jump to content
House Price Crash Forum
gruffydd

Labour Spin On Homes

Recommended Posts

Just got this spin from the Labour party - not v interesting, but worth a look (know thy enemy) - are houses now 6 times salary? thought that figure would be higher?

G

Home ownership has increased by 1m under Labour, largely thanks to a stable economy and low interest rates. Over 70% now own their own home, and 90% say that they would like to. But with rising house prices (houses used to cost 3.5 times annual salary, now they cost six times) in many areas of the country, many people on lower incomes have been priced out of the market. Addressing this issue is not just a housing problem – it's a matter of fairness, opportunity and social justice. We are committed to expanding the number of homeowners from the first million extra homeowners since 1997 to a second million homeowners.

Our equity share schemes have the potential to make homeownership a possibility for up to 400,000 more people and significantly reduce wealth inequalities between those who rent and those who own. We are currently consulting on the specific details of our Homebuy equity share schemes.

Mr Prescott and Mr Brown have confirmed that English Partnerships (EP), the Government's regeneration agency, has purchased nearly 100 surplus NHS sites for the purpose of supplying more affordable homes. In addition to this, EP is reviewing more than 700 further vacant and surplus sites, including land owned by the Ministry of Defence and vacant public sector sites next to railway stations in London.

The Deputy Prime Minister has also announced three further public sector sites for the Design for Manufacture competition, which challenges house builders to design high quality homes with a construction cost of around £60,000.

The sites, which are all ex-National Health Service (NHS) land, were announced as Renny Lodge, Newport Pagnell; Park Prewett, Basingstoke and Laybourne Grange, Maidstone. These sites will provide nearly 400 new homes, many for first time buyers. In all the scheme will provide nearly 1, 000 homes.

Further sites, and the names of the 33 bidders who will go through to the next round of the competition, will be announced next week.

The Government has taken many more measures to increase the supply of affordable housing. These include:

· Reforming the planning system to make it more efficient, responsive and effective. There has been a 12% improvement in the performance of planning authorities since 2002.

· Requiring local authorities to prepare and release more land, more quickly, for new building. We will consult later this year on further planning measures and on the recommendations in the Barker Review.

· Building more homes on less land; increasing the use of brownfield sites and increasing the density of new developments.

· Increasing the supply of affordable social housing for rent and investing to ensure that all social homes meet the decent standard.

· Increasing the stamp duty threshold, with an additional 300,000 home buyers now exempt from stamp duty every year.

John Prescott MP has said:

"For many people, becoming a homeowner has only been a dream. We want to make this a reality. Today the Chancellor and I visited people who never thought they'd have their own home in such an expensive part of London. They are now living in a listed building, brought back to life by an award-winning conversion scheme. We want to help more people like this to own their own home, allowing them to enjoy financial security and stability.

"But to do this we need to increase housing supply and to provide more affordable housing. We need to build more for our money. I have thrown down a challenge to builders; to be more innovative and imaginative whilst driving down construction costs. We have had a staggering response to the competition from private sector developers.

"We want to ensure decent housing for everyone, whether they own or rent. We remain absolutely committed to the provision of decent social housing at an affordable rent. We have already announced a 50% increase in new social home building and have made excellent progress on achieving our decent homes target for 2.2m homes. Now, work has been completed or plans agreed to bring 82% of these homes up to standard. We must all work together to create sustainable communities."

For more information on affordable housing policies, please visit http://www.odpm.gov.uk

Edited by gruffydd

Share this post


Link to post
Share on other sites

Why do they automatically assume it is only lower earners who are priced out of the market and therefore the answer is cheap starter prefabs (sorry..homes).

For those who are not on the property ladder even the reasonably well paid can't afford to buy.

Share this post


Link to post
Share on other sites
Why do they automatically assume it is only lower earners who are priced out of the market and therefore the answer is cheap starter prefabs (sorry..homes).

For those who are not on the property ladder even the reasonably well paid can't afford to buy.

From what I can grasp - no-one can afford to buy. Not without massive and completely unreasonable debt. I certainly wouldn't buy now and I earn what it appears the "average" FTB appears to earns:

"Housing 1st Time Buyers: The average house price in the UK in July 2005 for first time buyers now stands at £153,168 which is an annual increase of 6%.

The Council of Mortgage Lenders (CML) estimate in August 2005 that the first time buyers average new loan is 87% of the value of the property and that they borrow 3.22 times their income (based on income figure provided by buyers in their mortgage application and may reflect one or more incomes).

The average deposit required by first time buyers in the second quarter of 2005 was 21.0% of the purchase price. Based on repayment loans, in the UK, repayments as a percentage of income for first time buyers were 23.3% in the second quarter of 2005, up from 22.9% in the previous quarter and up from 21.4% one year ago"

From an item on the newsblog.

Share this post


Link to post
Share on other sites
Home ownership has increased by 1m under Labour, largely thanks to a stable economy and low interest rates. Over 70% now own their own home, and 90% say that they would like to. But with rising house prices (houses used to cost 3.5 times annual salary, now they cost six times) in many areas of the country, many people on lower incomes have been priced out of the market. Addressing this issue is not just a housing problem – it's a matter of fairness, opportunity and social justice.

Great, so when prices plummet the government can take credit for that too, such is their commitment to social justice.

Share this post


Link to post
Share on other sites
The Council of Mortgage Lenders (CML) estimate in August 2005 that the first time buyers average new loan is 87% of the value of the property and that they borrow 3.22 times their income (based on income figure provided by buyers in their mortgage application and may reflect one or more incomes).

The average deposit required by first time buyers in the second quarter of 2005 was 21.0% of the purchase price. Based on repayment loans, in the UK, repayments as a percentage of income for first time buyers were 23.3% in the second quarter of 2005, up from 22.9% in the previous quarter and up from 21.4% one year ago"

This is the type of thing that really winds me up. 21% for a deposit where I live would mean having a £33k deposit to buy a 1BR flat.

3.22 time the average salary where I live wouldn't even get you a studio flat - it might stretch to a garden shed though. http://www.housepricecrash.co.uk/forum/ind...3&st=0&p=202776

Also, if the average loan is 87% value of property, why does the average ftb need a 21% deposit????

87% national average property = approx 140k

3.22 salary = 140k, therefore salary for average purchase is about £44k p.a.

Something very fishy about these numbers if you ask me. :ph34r:

Edited by FreeFall

Share this post


Link to post
Share on other sites
3.22 salary = 140k, therefore salary for average purchase is about £44k p.a.

£44K per annum is below the average salary. For a couple who both work. Seems perfectly plausible.

Share this post


Link to post
Share on other sites
Guest KingCharles1st

Game set and match then- This is EXACTLY what I said would happen, all well and good.

As said previously in this thread, its now offically going to be ok to be an FTB, and then live in a wobbly rabbit hutch, just for the pleasure of propping up the governments books.

The governments coffers will be inflated straight away, as developers pile in, so no need to wait for these houses to be FINISHED, and builders get jobs, lenders get to lend, labour get new stuff to put Spin on. Crash gets out of the Shit, and Pie boy Prescott finally gets to do something.#

The press release is actually innacurate re the 3.5 and 6 times statement, as these multiples should actually apply to the mortgage amount, not the value of the property- DOH!

Also, it is omitted that by immediately building loads of shitty little prefabs, the price of the reasonable quality 2/3 bed market will collapse, thereby screwing the chances of people hoping to get onto the next rung.

Share this post


Link to post
Share on other sites
Over 70% now own their own home, and 90% say that they would like to.

Odd, I thought a lot of these people were mortgaged up to the danglies, and their properties and @rses were part owned with the bank?

Or is that the way the powers that be would like it?

/G

Share this post


Link to post
Share on other sites
£44K per annum is below the average salary. For a couple who both work. Seems perfectly plausible.

You forget that if a couple buys a property they are given a max mortgage of 2.5X combined incomes.

140/2.5= 56k, ie 28K each!

Share this post


Link to post
Share on other sites
You forget that if a couple buys a property they are given a max mortgage of 2.5X combined incomes.

140/2.5= 56k, ie 28K each!

Northern Rock have been giving up to 5 (five, yes FIVE) times JOINT salaries.

Share this post


Link to post
Share on other sites
Why do they automatically assume it is only lower earners who are priced out of the market and therefore the answer is cheap starter prefabs (sorry..homes).

For those who are not on the property ladder even the reasonably well paid can't afford to buy.

Thank you. And their rent/buy schemes only extend in the first instance to the really badly off. Those of us on an average wage (who still can't afford to buy) are not priority. We don't count (and we do know it... take heed spin doctors). We only get to peruse the second hand share ownership houses that were so crappy the first owners jumped within a couple of years (and still want a 20K premium... thought this was about affordable housing not 'even littler capitalists'???). Gee thanks 3 Jags. The grim reality of what you deserve if your a normal person on an average wage put me off share ownership better than any argument made here. I would rather die a shared rental bag lady!!!

Share this post


Link to post
Share on other sites
Guest magnoliawalls
The Council of Mortgage Lenders (CML) estimate in August 2005 that the first time buyers average new loan is 87% of the value of the property and that they borrow 3.22 times their income (based on income figure provided by buyers in their mortgage application and may reflect one or more incomes).

The average deposit required by first time buyers in the second quarter of 2005 was 21.0% of the purchase price. Based on repayment loans, in the UK, repayments as a percentage of income for first time buyers were 23.3% in the second quarter of 2005, up from 22.9% in the previous quarter and up from 21.4% one year ago"

From an item on the newsblog.

:angry: :angry:

21.4% deposit for FTBs? Most people I know did not see the point in saving for a deposit as house prices kept shooting up much faster than they could save.

Maybe many of these 'FTBs' are couples buying a second home/btl and putting it in the wife's name for tax reasons?

----------------------

By the way, Elizabeth, why are you 'slumming it'? :blink:

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.