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Dave Beans

Newsnight Now - House Prices

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only caught the end, but heard Help2Buy described as "it's like a nationalised sub-prime".

The RICs guy was out of his depth IMPO compared to the two other guests - sadly, he didn't get this kind of challenge throughout the day on any of hte other news channels.

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Watching it now the bbc ramping the property market

I got the opposite impression. Thought the reporting was very much on the side of ‘re-inflating bubbles, no way to run an economy etc’.

It’s so obvious how the political classes are hand in glove with their house building chums. The guy representing the house building federation or RICS or whatever reminded me of a dodgy insurance salesman.

Young man from Jilted Generation offered a very coherent argument. I’ve seen him a couple of times before and he does consistently well.

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Not as VI as we thought. Blimey! So Paxman has a beard and has gone grey. When did that happen?

Probably when he heard house prices were rising at their fastest pace for years knowing that he's got 3 kids who'll all come knocking for a deposit.

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only caught the end, but heard Help2Buy described as "it's like a nationalised sub-prime".

That's because it is. I write to the chap from my local authority who were taking part in the lloyds scam to assist ftb's to acquire finance using local authority money.

I pointed out that the local authority was not only buying the mezzanine tranche of a sub prime loan but that they were doing so at an amazingly low rate ( remember they receive interest).

He didn't even appear to understand the statement instead he responded with utter tripe about the fact that the la was receiving interest and that there was little or no risk .

I can not believe how quickly history is repeating itself . Maybe Gidiot and Cammers are trying to engineer tge mother of booms and busts so they can really pick up the land at dirt cheap prices when the crash comes.

For now I reckon it's at least five years away and by then £200k debt might be paid off by most wedding rings .

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Massive ramping on the bbc radio channels as well today; regional in Birmingham one guy who bought recently said if he hadn't have bought now who knowsif he'd be able to in say 5years time as prices can only go up.

In my opinion this IS the last hoorah (s.p.) and we are due a massive correction before Christmas.

House prices down 20% mark my words I'm calling it.

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That's because it is. I write to the chap from my local authority who were taking part in the lloyds scam to assist ftb's to acquire finance using local authority money.

I pointed out that the local authority was not only buying the mezzanine tranche of a sub prime loan but that they were doing so at an amazingly low rate ( remember they receive interest).

He didn't even appear to understand the statement instead he responded with utter tripe about the fact that the la was receiving interest and that there was little or no risk .

I can not believe how quickly history is repeating itself . Maybe Gidiot and Cammers are trying to engineer tge mother of booms and busts so they can really pick up the land at dirt cheap prices when the crash comes.

For now I reckon it's at least five years away and by then £200k debt might be paid off by most wedding rings .

Contrarian view, fancy placing a £10 on it? :D

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That's because it is.

I pointed out that the local authority was not only buying the mezzanine tranche of a sub prime loan but that they were doing so at an amazingly low rate ( remember they receive interest).

Spot on.

By definition, the government guarantee will be the riskiest of the risky, because even the banks won't lend it. It will be a disaster.

Noticed the guy defending it (maybe government, I dunno, the guy on the right of the studio?) said the extra demand would definitely increase house building. HUH! We had epic demand in the 2000's, people camping out all night to get their name on a property, Yet the builders didn't build enough then.

Edited by sleeping dog

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The guy representing the building industry said the problems of building too few new homes dated back to 1991 when a "plan led" housing policy was introduced.

Does anyone know what he might be referring to there?

Edited by oldsport

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The guy representing the building industry said the problems of building too few new homes dated back to 1991 when a "plan led" housing policy was introduced.

Does anyone know what he might be referring to there?

Basically, now you've got taxpayers money propping up the pyramid, please could you also get rid of planning - then things would be closer to dandy.

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Massive ramping on the bbc radio channels as well today; regional in Birmingham one guy who bought recently said if he hadn't have bought now who knowsif he'd be able to in say 5years time as prices can only go up.

In my opinion this IS the last hoorah (s.p.) and we are due a massive correction before Christmas.

House prices down 20% mark my words I'm calling it.

Before Christmas! Blimey you are confident! It would be the best Christmas present ever though. How come you are so certain? Are you drunk?(with respect)

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Its pretty clear that there is going to be a double bubble now, but the more that the BBC try and ramp up prices the quicker the bubble will inflate and the quicker that it will pop.

There is no escape for us HPC'ers in the short term from higher prices but 'The bigger the bubble the bubble, the bigger the POP!'

Imagine if all this HPI money was going into actual industry- the country would end up so much better off.

Double Bubble Toil and Trouble.

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There was a double bubble here, caused by everyone thinking that they would become rich from buying property. This caused almost everyone to buy an investment property, so lots of (substandard) investment property was built.

Could have been stopped easily by the government of the banks restricting lending like they are now.

Same issue in London, the banks could restrict lending to 3.5x joint income max - that would stop unsustainable price rises but instead they choose to loan out more money based on the rising values.

For example: (London)

2005 = 1 bed flat costs £150,000 bank lends £120,000 80% LTV

2013 = 1 bed flat costs £300,000 bank lends £240,000 80% LTV

Loan to value remains the same, but they are lending more money based on the previous price rises. The banks can see this is unsustainable as they know how much wage inflation is.

The banks will not stop silly lending of 10x salary at 2% interest rates because the tax payer will bail them out.

The consumbers will not stop silly borrowing because the consequences have been taken away.

IMO that's why this sorry mess is repeating in the UK now - no consequences.

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Its pretty clear that there is going to be a double bubble now, but the more that the BBC try and ramp up prices the quicker the bubble will inflate and the quicker that it will pop.

The Newsnight discussion was if anything anti HPI (including Paxman). The nonsense posted here about the BBC and HPI ramping is sounding increasingly paranoid.

There are many voices in the media including the BBC who realise that HPI is not good for anyone but with a government that is increasingly desperate to see HPI then reporting the facts when the government get what they want is difficult for the media to avoid.

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The Newsnight discussion was if anything anti HPI (including Paxman). The nonsense posted here about the BBC and HPI ramping is sounding increasingly paranoid.

There are many voices in the media including the BBC who realise that HPI is not good for anyone but with a government that is increasingly desperate to see HPI then reporting the facts when the government get what they want is difficult for the media to avoid.

+1

Most of the reports that I've seen regarding HPI over the last few days have pointed out that the bubble is re-inflating.

There has also been talk of dropping H2B part two on existing properties. I want it to go ahead so that the HPC can be sooner rather than later.

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The Newsnight discussion was if anything anti HPI (including Paxman). The nonsense posted here about the BBC and HPI ramping is sounding increasingly paranoid.

There are many voices in the media including the BBC who realise that HPI is not good for anyone but with a government that is increasingly desperate to see HPI then reporting the facts when the government get what they want is difficult for the media to avoid.

Did you listen to Radio 4 from about 7.30am yesterday? That could be described as nothing short of a full blown HPI ramping spunkfest. No balance whatsoever. It is pleasing if the rectified this somewhat later in the day.

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Did you listen to Radio 4 from about 7.30am yesterday? That could be described as nothing short of a full blown HPI ramping spunkfest. No balance whatsoever. It is pleasing if the rectified this somewhat later in the day.

Yeah that was throat punchingly awful. Frankly the whole thing having come from nowhere had all the hallmarks of co-ordinated PR from on high.

My mind is otherwise boggled.

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Did you listen to Radio 4 from about 7.30am yesterday? That could be described as nothing short of a full blown HPI ramping spunkfest.

I noticed that. "house prices will go up 4%, great news" followed by "Rail fares up 4%, what a disaster".

I just translated that to "I want assets I own to be expensive, anything else should be cheap".

There is no understanding of the big picture, where high house prices simply generate interest income for the banks. We wont get our house price crash until interest rates go up and banks repossess or there is a mass building program (better).

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Gotta love those tandem headlines.

Forced by house prices into a expensive commute, just MEW the equity to pay for it.

It's a ridiculous situation.

In fact MEW should be a massive concern now, on these entirely fictitious valuations of property.

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