ingermany Posted October 16, 2013 Share Posted October 16, 2013 A Treasury spokesman said of the figures: "We're encouraged to see signs that house prices are recovering from a low base alongside the wider economy."However, the Government understands that the housing and mortgage markets are yet to return to their long run levels, leaving too many people - especially first-time buyers - struggling to afford historically high level of deposits. "That's why the Help to Buy mortgage guarantee is a vital tool to give young people the same opportunity to get a foot on the property ladder as previous generations." Well, they are at least giving a clear message. House prices need to be pushed up, and this is official treasury policy. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 16, 2013 Share Posted October 16, 2013 (edited) Well, they are at least giving a clear message. House prices need to be pushed up, and this is official treasury policy. So once the buyers who can't afford the deposit for a house are sold the house they can't afford...how will they pay for it ? Magic Beans ? How will the afford the up keep, the council tax and the bills ? Should we all be printing our own money perhaps ? Edited October 16, 2013 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Billy soy Posted October 16, 2013 Share Posted October 16, 2013 Well, they are at least giving a clear message. House prices need to be pushed up, and this is official treasury policy. This treasury spokesman is spouting so much ******** its making my head hurt. Quote Link to comment Share on other sites More sharing options...
tomandlu Posted October 16, 2013 Share Posted October 16, 2013 Well, they are at least giving a clear message. House prices need to be pushed up, and this is official treasury policy. Weird mix of phrases there from the treasury. Each one has some logic when considered alone, but put them together and my brain starts hurting. I'm assuming that saying "house prices need to fall" would make them explode, like a vampire reciting the Lord's prayer or something. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted October 16, 2013 Share Posted October 16, 2013 Well, they are at least giving a clear message. House prices need to be pushed up, and this is official treasury policy. A complete contradiction. "Recovering from a low base"?! What planet are these people on? At least the goal is clear-feed the banks via HPI. Dangerous people. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 16, 2013 Share Posted October 16, 2013 The labour market stats were released this morning. Average weekly pay including bonuses is up just 0.7% (most recent 3 months vs same 3 months last year). Regular weekly pay is up 0.8%, the lowest growth ever recorded since the AWE series began in 2001. Meanwhile CPI inflation is 2.7% and RPI is 3.2%. In the face of a severe squeeze in real earnings at a time of record low interest rates, the government seems quite happy to encourage its populace to load up on debt at high levels of leverage. http://www.ons.gov.uk/ons/dcp171778_327398.pdf Quote Link to comment Share on other sites More sharing options...
shindigger Posted October 16, 2013 Share Posted October 16, 2013 Ahhh -- the NEW World - you don't have to afford to buy a house any more....just a deposit....which if we gift most of it, magics up almost free houses! In a world where people are borrowing the money for RENTAL deposits anything is possible. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted October 16, 2013 Share Posted October 16, 2013 The labour market stats were released this morning. Average weekly pay including bonuses is up just 0.7% (most recent 3 months vs same 3 months last year). Regular weekly pay is up 0.8%, the lowest growth ever recorded since the AWE series began in 2001. Meanwhile CPI inflation is 2.7% and RPI is 3.2%. In the face of a severe squeeze in real earnings at a time of record low interest rates, the government seems quite happy to encourage its populace to load up on debt at high levels of leverage. http://www.ons.gov.u...1778_327398.pdf Excellent post, as always - really putting things into context. The current mini-boom in HPI is, IMO, solely down to Funding for Lending giving mortgage payers even smaller monthly payments. That extra cash will rapidly be eaten up by the cost of living increases though. Same effect in 2010, when IRs plummeted as house prices performed a deadcat bounce. Ergo, this boom will not last long. Probably long enough to last until HTB kicks in though . Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted October 16, 2013 Share Posted October 16, 2013 Excellent post, as always - really putting things into context. The current mini-boom in HPI is, IMO, solely down to Funding for Lending giving mortgage payers even smaller monthly payments. That extra cash will rapidly be eaten up by the cost of living increases though. Same effect in 2010, when IRs plummeted as house prices performed a deadcat bounce. Ergo, this boom will not last long. Probably long enough to last until HTB kicks in though . And yet, looking at a recent Spencer Dale speech, growth at annual 3-4% is gaining hold. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted October 16, 2013 Share Posted October 16, 2013 (edited) The labour market stats were released this morning. Average weekly pay including bonuses is up just 0.7% (most recent 3 months vs same 3 months last year). Regular weekly pay is up 0.8%, the lowest growth ever recorded since the AWE series began in 2001. Meanwhile CPI inflation is 2.7% and RPI is 3.2%. In the face of a severe squeeze in real earnings at a time of record low interest rates, the government seems quite happy to encourage its populace to load up on debt at high levels of leverage. http://www.ons.gov.uk/ons/dcp171778_327398.pdf The galloping wage inflation required to normalise house prices, which was more or less Govt. policy a couple of years ago, seems like it's simply not appearing. Who'dve thunk it? This ought to play well into tighter lending criteria next year. PCPs for houses seems to be the solution. Has worked for car companies. Edited October 16, 2013 by The B.L.T. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 16, 2013 Share Posted October 16, 2013 There was some economist chap on Fivelive this morning pointing out that food, fuel and housing going up whilst wages remain very low is not good. Said he was concerned by H2B. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted October 16, 2013 Share Posted October 16, 2013 Five years of financial repression in a single chart. It also suggests that wage growth will be negative again early in the New Year. Lovely, lovely stuff. Quote Link to comment Share on other sites More sharing options...
shindigger Posted October 16, 2013 Share Posted October 16, 2013 Good idea. You pay an upfront amount for 'use' of a house for so many years, then when you leave, you get a 'balloon payment' to put towards your next one (or pay in if in negative equity). Theres a crack in the living room window. That will be seventeen thousand pounds. Quote Link to comment Share on other sites More sharing options...
shindigger Posted October 16, 2013 Share Posted October 16, 2013 Five years of financial repression in a single chart. It also suggests that wage growth will be negative again early in the New Year. Lovely, lovely stuff. And thats a knobbled CPI too. Quote Link to comment Share on other sites More sharing options...
Quicken Posted October 16, 2013 Share Posted October 16, 2013 We're encouraged to see signs that house prices are recovering from a low base What the f*ck are these guys smoking? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted October 16, 2013 Share Posted October 16, 2013 What the f*ck are these guys smoking? They've managed to reverse the Titanic for another run at the iceberg. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted October 16, 2013 Share Posted October 16, 2013 The labour market stats were released this morning. Average weekly pay including bonuses is up just 0.7% (most recent 3 months vs same 3 months last year). Regular weekly pay is up 0.8%, the lowest growth ever recorded since the AWE series began in 2001. Meanwhile CPI inflation is 2.7% and RPI is 3.2%. In the face of a severe squeeze in real earnings at a time of record low interest rates, the government seems quite happy to encourage its populace to load up on debt at high levels of leverage. http://www.ons.gov.uk/ons/dcp171778_327398.pdf Real house prices vs. real wages must be taking off again on your halifax charts. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted October 16, 2013 Share Posted October 16, 2013 What the f*ck are these guys smoking? Probably the same thing that they were when they bought their BTL portfolio at peak. Quote Link to comment Share on other sites More sharing options...
DabHand Posted October 16, 2013 Share Posted October 16, 2013 What the f*ck are these guys smoking? Transaction vol l would guess. Course that will never recover outside another speculative blow off or an almighty crash back to levels where your average worker could afford it. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 16, 2013 Share Posted October 16, 2013 Real house prices vs. real wages must be taking off again on your halifax charts. Yep, the gap continues to widen. Here's the latest: Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted October 16, 2013 Share Posted October 16, 2013 Yep, the gap continues to widen. Here's the latest: I bet this chart is looking better and better too You mean like this? Another Hudson tweet Quote Link to comment Share on other sites More sharing options...
ingermany Posted October 16, 2013 Author Share Posted October 16, 2013 What the f*ck are these guys smoking? This is a "treasury spokesman".....these are the guys charged with running the nation's budget. And they believe that having to pay more and more for the same basic essential item is good news. So much so that we need policies in place to make prices rise even faster. We are truly f****ed. Quote Link to comment Share on other sites More sharing options...
ingermany Posted October 16, 2013 Author Share Posted October 16, 2013 Excellent post, as always - really putting things into context. The current mini-boom in HPI is, IMO, solely down to Funding for Lending giving mortgage payers even smaller monthly payments. That extra cash will rapidly be eaten up by the cost of living increases though. Same effect in 2010, when IRs plummeted as house prices performed a deadcat bounce. Ergo, this boom will not last long. Probably long enough to last until HTB kicks in though . Then what? HTB3? I'm holding out for HTB13 personally because the terms will get better and better. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 16, 2013 Share Posted October 16, 2013 (edited) Then what? HTB3? I'm holding out for HTB13 personally because the terms will get better and better worse and worse. Corrected for you. Was thinking about this.... If the government paid a 100% deposit for you and you don't end up paying it back...isn't that just a council house ? If you paid the whole house yourself...then that's a private residence. So, everything in between, in reality, is part council house !!!! Why are idiots willing to pay up to £600K for a (part) council house. They used to give them out for nothing but now you need to give over your whole life's income to the banks to get one. Are the British people stupid ? Edited October 16, 2013 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
wonderpup Posted October 16, 2013 Share Posted October 16, 2013 (edited) struggling to afford historically high level of deposits. I love the fact that nobody ever seems to point out that deposits are a reflection of the risk that the lenders feel they are taking- it's as if 'deposits' were some sort of natural feature-like bad weather- that must somehow be overcome by state intervention. The only reason deposits are high is because the bankers are doing what they should have been doing in the past- assessing risk and pricing it accordingly- at which point the Chancellor of England jumps in more or less tells them to throw caution to the winds on the basis that he will make up any losses using other people's money. So the man who told us that you can't solve a debt problem with more debt is fast becoming the patron saint of irresponsible lending. Edited October 16, 2013 by wonderpup Quote Link to comment Share on other sites More sharing options...
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