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Eddie_George

Anthony Hilton: Help To Buy Deserves To Be Permanent

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http://www.standard.co.uk/business/markets/anthony-hilton-help-to-buy-deserves-to-be-permanent-9186912.html

Perhaps because it is a rare example of a Government policy which actually works, the Help to Buy mortgage scheme to assist potential homebuyers has attracted disproportionate criticism.

London house prices are booming and for much of the media Help to Buy is the cause.

Russian and Ukrainian oligarchs, whose purchases in the posh areas drive the whole market, have never had to rely on the scheme to fund their deposit. Nevertheless it is widely alleged that Help to Buy is fuelling a dangerous housing bubble and needs to be curbed before it bursts and brings on another financial crash.

So hats off to respected Morgan Stanley analyst Huw van Steenis who, with Charles Goodhart, has done the sums, looked at the real effect the scheme is having and come to the opposite conclusion.

In his view the best thing George Osborne could do in his Budget next week is guarantee Help to Buy will run for at least another three years, and put in place plans to privatise it so it becomes as permanent as similar schemes already are in Canada and Australia.

LOL!

Edited by Eddie_George

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if you ask me the peopke behind this help to banks scheme deserve to be in prison!

Yep. HTB2 is Probably the worst economic policy put in place by any government in the past 30 years.And that really is saying somethng

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Shame. Hilton was one of the more sane financial journalists.

But I reckon he's coming close to retirement and will have a property or properties for sale or even BTL's to offload.

At one time if you pimped stocks you had to declare an interest. But property pffft.

Edited by aSecureTenant

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http://www.standard.co.uk/business/markets/anthony-hilton-help-to-buy-deserves-to-be-permanent-9186912.html

In his view the best thing George Osborne could do in his Budget next week is guarantee Help to Buy will run for at least another three years, and put in place plans to privatise it so it becomes as permanent as similar schemes already are in Canada and Australia.

Canada & Australia where there are already high property prices ?

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Help To Buy, temporary ... same as QE and income tax. Once addicted it is very difficult to give up and so it will be extended and 'improved' either by Osborne or by Labour when they are back in. Removing the 'crack cocaine' of property price increases would result in an almighty crash in property prices and no government wants that as it would mean the wilderness for a decade or more.

I'm sure we will see HTB extended and possible increased. Mortgage increased to a normal 30 years length. Anyone with a house that I have spoken to about this thinks it is fine. "How else will anyone buy a house" they say. Errrmm prices could fall, I reply... but that won't be happening just yet!

It won't be long until every FTB is using HTB to buy 30% of a shared ownership flat. That can only end well, can't it! :P

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http://

en.wikipedia.org/wiki/Huw_van_Steenis

Huw van Steenis

From Wikipedia, the free encyclopedia

Huw van Steenis (born 25 September 1969) is a British banker and the Head of European Financials Services Research at investment bank Morgan Stanley. Notable for his bearish forecasts prior to the global financial crisis and Eurozone crisis, Van Steenis has 9 times been voted the number one financials analyst in institutional investor polls.[1] He has also won a number of other forecasting awards including twice European "Stock Picker of the Year" for Banks and Financials in Reuter’s Starmine.[2] His is the great nephew of botanist Cornelis Gijsbert Gerrit Jan van Steenis.

Career

Van Steenis is a widely recognized thought leader on financial services. Anthony Hilton, City Editor, Evening Standard called him as "one of the most authoritative banking analysts in Europe" [3] The Wall Street Journal's Financial News named him as 'European Banker of the Quarter' for Q1 2009 for his work on the banking crisis and policy response describing him as "one of the most well regarded and influential voices commenting on issues facing the industry"

....

....

So the financial crisis and the eurozone crisis wasn't so "unexpected" after all. Certainly Morgan Stanley would have expected it as Van Steenis worked for them then.

Maybe they just didn't tell The MacDevastator (or the BoE) - and maybe The Liar did take notice to make such a timely exit in 2007.

(From Wikipedia: In January 2008, it was confirmed that Blair would be joining investment bank JPMorgan Chase)

Edited by billybong

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I'm not sure whether these "journalists" are either clueless idiots or just plain evil.

they are the very same people that think money is in short supply and handing it out is the cure.

Money is created by monetising wealth.

If there is a shortage of money, then there is a shortage of wealth...and that is caused by some groups taking it away from the people that produce and actually need it.

So handing some back in the form of loans is really a form of welfare...only needed because it was removed by stealth in the first place.

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Help To Buy, temporary ... same as QE and income tax. Once addicted it is very difficult to give up and so it will be extended and 'improved' either by Osborne or by Labour when they are back in. Removing the 'crack cocaine' of property price increases would result in an almighty crash in property prices and no government wants that as it would mean the wilderness for a decade or more.

I disagree, once all teh last of the greater fools have jumped aboard the pyramid the banks will pull the plug, the owners loose 20% of their equity, mass repossessions could ensue and the government ( Us ) are on the hook for their 20% losses.

great scam.

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And he deserves to be hit by a bus. Come along karma.

He is more likely to be on the bus - if he lives in London and aged 60+ he is entitled to a free zone 1-9 travelcard worth over £3,000 a year! That's nearly 60% of the value of the state pension.

So not only are the young going to face ever rising house prices - they are also going to have to carry on subsiding his free travel to work/the opera etc etc!

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Yep. HTB2 is Probably the worst economic policy put in place by any government in the past 30 years.And that really is saying somethng

Putting the FSA in charge of banks was possibly worse. However I am still amazed that very few politicians can see this is a really bad idea.

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I'm not sure whether these "journalists" are either clueless idiots or just plain evil.

useful idiots.

how else would public opinion be formed by those with a position

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I guess that if you need hospitals and schools and police in London, then you need HTB on steroids. When TPTB talk about "affordable housing" they do not mean "cheaper housing" They mean finding ways of allowing a newly qualified teacher to get a million pound loan.

Already, it has become financial and political orthodoxy that the government is responsible for providing cheap home loans, rather than universal health care, literacy, education and legal aid. People here say this can only end badly. I say it already has. When all mainstream journalists are cheering the nationalisation of sub-prime lending, something has already gone seriously wrong.

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Putting the FSA in charge of banks was possibly worse. However I am still amazed that very few politicians can see this is a really bad idea.

I think many of them do secretly know this is not a good policy.....but sometimes other selfish factors blur their judgement of short-term thinking, like winning an election.

...how about help to get a secure living wage job or help to pay the rent, or help to pay bill of choice....help to get into lots of debt and stay there is about their only solution to keeping the economy ticking over.....enter at your own risk. ;)

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