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John Prescott: The Housing Boom And Bust Needs To Be Ditched


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HOLA441
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HOLA442
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HOLA443
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HOLA444
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HOLA445

Opening two lines:

"After three years, this Government has failed to get a grip on the growing housing crisis.Now the Bank of England Governor Mark Carney is warning of a new housing bubble"

So the housing crisis was nothing to do with Labour? And when exactly has Mark Carney issued a warning of a new housing bubble coming?

That was as far as I got...

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HOLA446
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HOLA448

Opening two lines:

"After three years, this Government has failed to get a grip on the growing housing crisis.Now the Bank of England Governor Mark Carney is warning of a new housing bubble"

So the housing crisis was nothing to do with Labour? And when exactly has Mark Carney issued a warning of a new housing bubble coming?

That was as far as I got...

I clicked on the link and saw a photo of a smiling Blair. Then there's even more rubbish on the Mirror page than the Mail online.

Check out best from the web:- "Hair cut turns cat into mini lion".

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RATES ARE GOING TO RISE - they are all scrambling to position themselves with some level of credibility intact.

I think you are right there, one of the reasons for that is the banks here are extremely strict on borrowing. They are so strict that even a crasher thinks that they could be a 'little' more flexible they make the lending policies of the UK look like an utter joke.

Why be so strict? We are talking about rigid 3.5 times wages (which isn't the problem), stress testing to 6.5% and affordability calculation which means that a couple with one child and one person earning €40k pre-tax is not eligible for 1 cent mortgage.

US banks mortgage rates have risen.

It's like everywhere outside the bubble that is the UK are either penciling in further falls or higher rates.

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HOLA4411

We need to allow the development of 2 Million prefabs, built within a year. Otherwise the Pound will collapse.

Any more theories to back this up? I am interested..

The only way I can see an immediate collapse rather than a long drawn out decline as goods inflation is kept above wage inflation is rising bond yields.

I wish I knew where bond yeilds would be in 12 months time, hopefully for us they will be about 3% which will mean minimum mortgage rates of 5% or the pound falling like a stone as they ignore the market and keep rates low regardless.

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HOLA4412

Low-cost housing plan for first-time home-buyers falls flat

He devoted much of his speech to the Labour Party Conference in 2004 to the problem of young people being priced out of the housing market.

Since coming to power in 1997, he observed, the average price of a home for a first-time buyer had tripled to around £220,000 ($355,000).

The former Labour minister's solution was to challenge the construction industry to build homes for just £60,000 ($97,000).

They could do this, he argued, by embracing more modern methods of construction, like building homes off-site and using materials more effectively.

The price of the property would further be brought down for the first-time buyer, he said, because they would be paying only for the cost of building and not for the land.

I guess he did try.

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HOLA4413

I think you are right there, one of the reasons for that is the banks here are extremely strict on borrowing. They are so strict that even a crasher thinks that they could be a 'little' more flexible they make the lending policies of the UK look like an utter joke.

Why be so strict? We are talking about rigid 3.5 times wages (which isn't the problem), stress testing to 6.5% and affordability calculation which means that a couple with one child and one person earning €40k pre-tax is not eligible for 1 cent mortgage.

US banks mortgage rates have risen.

It's like everywhere outside the bubble that is the UK are either penciling in further falls or higher rates.

Without land reform and an LVT the State will have to massively intervene in housing. It ought to be building council housing on a massive scale. Sadly this is politically unacceptable.

Instead we have Shelter flogging dubious and unethical 'shared ownership' where basically you pay an unlawful 'premium' (on a mortgage I kid you not) to buy yourself a secure tenancy.

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HOLA4414

The housing crisis is now so big, we urgently need a World War 2 type generation to make big decisions. Not the baby boomers, they sadly just aren't mentally big enough.

Problem is the decisions are now being made by the Gen Xers who are the first generation born into credit card Britain and have no idea how to live without debt.

Edited by campervanman
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HOLA4415

Opening two lines:

"After three years, this Government has failed to get a grip on the growing housing crisis.Now the Bank of England Governor Mark Carney is warning of a new housing bubble"

So the housing crisis was nothing to do with Labour? And when exactly has Mark Carney issued a warning of a new housing bubble coming?

That was as far as I got...

Unbelievable, isn't it?

Also incredible is how he completely ignores the problem of over-restricted planning and the consequent high cost of building land.

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HOLA4416

Path Finder .... what an almighty mess. I come from one such town. I had friends who lived in to different parts of the town, both built at the same time (rows and rows of terraced houses). One part of the town got the Path Finder treatment so now some streets have been flattened and others are boarded / bricked up, The area is desolate. In the other part of the town ... same house, same design, same age the houses are still occupied, new windows, freshly painted front doors, clean streets etc.

I remember quite a few threads on HPC about Pathfinder . . . a year or so ago.

In many cases, renovation would have been a better option. Demolition is an expensive game. But that might have meant 'affordable housing'.

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