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House Prices Are Rising At Fastest Rate In 3 Years Thanks To Government's £80B Boost


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House prices are rising at fastest rate in three years thanks to Government's £80billion boost
  • Funding For Lending Scheme managing to cut interest rates on mortgages

  • Price rise is good for homeowners, but another blow for first-time buyers

  • House prices are up by 1.3 per cent on a year ago - first annual rise for 27 months

House prices are increasing at their fastest rate since early 2010, fuelled by the Government’s £80billion attempt to kick-start the economy, the Halifax said yesterday.

The Funding For Lending Scheme has been failing to get money to its key target – cash-strapped small businesses – but it is managing to cut interest rates on mortgages and make them more easily available.

For homeowners, a rise in prices is a cause for celebration, but it is another blow for first-time buyers trying to get on to the property ladder.

http://www.dailymail.co.uk/news/article-2274771/House-prices-rising-fastest-rate-years-thanks-Governments-80billion-boost.html

Bastards.

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A couple of times I've thought about starting a limited company doing some crazy, crackpot, unwanted garbage. Doesn't really matter what. Then take out a whacking great loan from a bank and paying myself a huge salary out of it. When the money runs out taking out another loan to pay off the first and keep paying me my salary. Repeat. That is what the state wants people to do. Start small 'businesses' that survive on debt alone. Because that will 'get the economy going'.

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80 billion....i thought it was only 60.

i remember when a billion was a lot of money....said Mr mugabe to me last night.

house prices might rises thus year....not sure about next year.

the government need to borrow an extra 60 billion bug then are giving away 80....seems like a no brainer to me....stop ffl now.

any mention of the savers being hammered and their real money being devalued and even less likely to be spent?

i didn't think it was possible but this lot are worse than labour.

any bets on when the monetary crisis will kick off?

Edited by TheCountOfNowhere
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It's the utter obsession that the government is absolutely not allowed to tell the banks how to use the money it's handing over.

It's like having an alcoholic, compulsive gambler child, mortgaging your house to pay off their debts and give them some money, but not having any controls on how they spend it or insist on any treatment plan. Then being shocked to find them in the bookies with a bottle of whiskey..

Nationalise RBS. Turn the investment banking division into a national infrastructure/business lending bank. Turn the retail operation into a mutual focused on prudent lending and attracting savings. It's not hard..

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SKY News during the paper reviews ( why a TV news programme reviews the drivel from the dead tree press,I have no idea) decided a top story to discuss was the Express' latest house price rise headline and how wonderful it was that finally an essential resource is becoming less affordable, the cancer is still being spread. Although to be fair one of them did say she thought house prices needed to drop 30% in the same breath much to the confused looks of the others present, totally schizo... <_<

Edited by JustAnotherProle
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My delightful employers have the local commercial radio station pumped into an open plan office I am currently spending a lot of time in. Other than developing a deep desire to imolate Alicia Keys after hearing that 'girl on fire' song for the severnth time today, I have also noticed a shed load of adverts for 95% mortgage / we buy your old house / we pay your deposit adverts - starting to smack of desperation much? Nobody ever had to advertise mortgages or new builds in the good old pre-crunch days did they?

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SKY News during the paper reviews ( why a TV news programme reviews the drivel from the dead tree press,I have no idea) decided a top story to discuss was the Express' latest house price rise headline and how wonderful it was that finally an essential resource is becoming less affordable, the cancer is still being spread. Although to be fair one of them did say she thought house prices needed to drop 30% in the same breath much to the confused looks of the others present, totally schizo... <_<

Yes indeed it's an interesting ploy as if the brain dead zombie newspapers had some special insight - pretending that they aren't all just told what headlines to write and the others just told what to do and say each day.

The dumbed down are bribed to say whatever they're told to say and if they're good they end up on BBC on a Thursday night expressing their dumb views on TV programmes like question time chaired by the dumbed downest and dimmest of them all.

Edited by billybong
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More suicide policies of pushing money going out of the real economy to be locked away in high land/property prices creating yet more private debt and sustaining the Great Recession whilst creating even more zombie businesses and households. How can there ever be a recovery with this madness of mind - it's totally illogical.

The problem is structural in that there is too much private debt in the economy that's needs to be written down first and yet politicians/BofE are still kidding themselves that it's cyclical and that by stimulating the economy through more borrowing we can get out of this slump.

We can't - the nation is maxed-out on debt. The invisible hand of the free market was chopped off by artificially low interest rates and money printing. That free hand would have written down the debt to a more manageable level through a severe house price crash like they got in other countries and we would be in a better position now having gone through the pain just like they did in Ireland, Spain and the US.

If base rates stay at 0.5% for the next 5 years and this madness continues then there will never be a recovery just like what Japan experienced. I say this because it's easier to accept this outcome based on what's happening and likely to happen rather than hoping for a recovery that never comes and nominal GDP numbers that are just inflation masking no real growth.

Asking prices are shooting up in Swansea - of the new stuff. It makes the stuff from 3 months ago look cheap... and so on and so on. Every now and then someone buys something. How they fund it I do not know.

There is nothing to stop the EAs ramping. It is a good business to be in in Swansea. I daren't think where asking prices will be by May let alone by 2019.

Without the mechanism of interest rates to put a break on things then asking prices are going parabolic.

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A new build development near me is selling well and saw the sign saying 95% mortgages available...... worst financial crisis since 1866 with banks going bust and look how quickly it took for our politicians and 'independant' Bank of England to take us back to that crazy multiple of lending and reflate the bubble.

I think inflation will eventually act in the same way as raising interest rates though as it's out-pacing wage growth. But it does feel like the world is now awash with cash that is just waiting to inflate the next asset, but I don't think property is it anymore. It should be precious metals and gold & silver in particular. That is the next public participation mania that should soon begin after a brief decline over the next few months (IMO).

:lol: Aye right, not where I`m sitting in Edinburgh, the desperation to sell/rent out is palpable.

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Really heartwarming news....Some brave decisions had to be made by bankers but the end result is what everyone wants. Rising house prices....Do what it takes. Lets get the up over 10% this year.

- Sibley , Bangkok, United Kingdom, 10/2/2013 01:59

Did not know he moved to Bangkok, or is he checking DM while on holidays? :huh:

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A new build development near me is selling well and saw the sign saying 95% mortgages available...... worst financial crisis since 1866 with banks going bust and look how quickly it took for our politicians and 'independant' Bank of England to take us back to that crazy multiple of lending and reflate the bubble.

I think inflation will eventually act in the same way as raising interest rates though as it's out-pacing wage growth. But it does feel like the world is now awash with cash that is just waiting to inflate the next asset, but I don't think property is it anymore. It should be precious metals and gold & silver in particular. That is the next public participation mania that should soon begin after a brief decline over the next few months (IMO).

It is like the stock market ian't it - the rises go up higher and higher with asking prices but the dips, if they happen, do not take us back down to the last lower level. Constantly rising and rising beyond many on here.

Will Hutton was just on the radio saying the UK is about to see massive cuts of services not seen since 1945 and the start of the welfare state. Personally, I think he is talking ******. No sign of that in Wales.

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Will Hutton was just on the radio saying the UK is about to see massive cuts of services not seen since 1945 and the start of the welfare state. Personally, I think he is talking ******. No sign of that in Wales.

Nor here in "Kirklees." They are just turning a few street lights off to save £30k a year having just bought every councillor an iPad costing a total £25k.

Mind the economy would collapse if they did much more as its pretty much a soviet state. Top employers are Kirklees MC itself, the NHS trust (you've never seen a more unhealthy town) and the local edububble. After that its the supermarkets bringing up the "free market" representation.

House prices are falling though gently. They are just about "affordable" if paying £40k for a one bed Victorian underdwelling or back to back is affordable. Private landlords I hear are struggling as they fight over the few remaining credit worthy tenants that have decent secure jobs (mainly in the state sector or in other Cities).

Annoyingly though a former social flat will get snapped up for £25k then have a DWP tenant in it a few weeks later for £77 a week and the LHA rate will rise by inflation next March. :angry:

Mind then again Huddersfield has the second largest private sector employment growth after Barnsley, but can't help but feel this is mainly fed up jobseekers who have decided to go the WTC scam route instead. Some will be former council employee's contracting back too.

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It is like the stock market ian't it - the rises go up higher and higher with asking prices but the dips, if they happen, do not take us back down to the last lower level. Constantly rising and rising beyond many on here.

Will Hutton was just on the radio saying the UK is about to see massive cuts of services not seen since 1945 and the start of the welfare state. Personally, I think he is talking ******. No sign of that in Wales.

No offence MT, but there is a slightly hysterical note to some of your recent posts :lol: , it seems never ending if you are watching the economy daily, but one day soon there will be a crunch moment with the banks or the euro or the bond markets, and rushed "announcements" will be made, none of which will benefit those who have held out for stupid prices. I think HB cuts will become pretty apparent in their effect on BTL soon anyway. (aiming for a sinister rather than hysterical feel there) :ph34r:

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No offence MT, but there is a slightly hysterical note to some of your recent posts :lol: , it seems never ending if you are watching the economy daily, but one day soon there will be a crunch moment with the banks or the euro or the bond markets, and rushed "announcements" will be made, none of which will benefit those who have held out for stupid prices. I think HB cuts will become pretty apparent in their effect on BTL soon anyway. (aiming for a sinister rather than hysterical feel there) :ph34r:

Slight? My panic attacks have returned with a vengeance.

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FLS is a bit like spreading peanut butter over dogsh!t and hoping nobody will notice.

Chunks of the media are all for it, with no mention of high house prices!

Mortgage hopes boost property interest

Government schemes to unblock the flow of lending appear to be boosting buyers' confidence about their ability to get a mortgage.

...

The CML said last month that it feels more positive about the UK housing market and the wider economy than a year ago.

John Willcock, head of mortgages at the Post Office, said: "It's really encouraging to see such optimism among potential homebuyers...

"The changing lending landscape, housing market movement and the availability of more affordable mortgages in early 2013, has perhaps cajoled many into feeling more confident about the future of the housing market, with more people hoping to move, or buy a property for the first time, over the next few years."

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9856205/Mortgage-hopes-boost-property-interest.html

Funding for Lending: Is it working yet?

The news that house sales have risen to their highest level in five years suggests loans are getting easier to come by.

So are banks and other lenders finally loosening up the purse-strings? And how much of that could be due to the government and Bank of England's Funding for Lending scheme?

Funding for Lending was launched by the chancellor of the exchequer six months ago, and aims to give up to £60bn to banks and building societies.

The deal is that they get to borrow that money cheaply, as long as they lend it on to businesses and individuals.

In theory, that should boost lending, and the economy.

The Halifax, the UK's largest house lender, believes the benefits are only just beginning to feed through to the mortgage market.

"I suspect Funding for Lending is having an effect, but it's difficult to quantify," says the bank's chief economist Martin Ellis.

"The scheme has only been in place since last summer, but it's helping to support, and push up, the level of sales."

http://www.bbc.co.uk/news/business-21148810

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  • 433 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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