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Ologhai Jones

B B C Website: Ten Ways To Cool The Housing Market

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http://www.independent.co.uk/money/mortgages/millions-face-becoming-mortgage-prisoners-as-rise-in-interest-rates-could-trap-to-23m-homeowners-9399137.html

And today (but HPC will not let me post without moderating so perhaps someone could post this as a separate thread)

Millions face becoming ‘mortgage prisoners’ as rise in interest rates could trap to 2.3m homeowners

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At least its not pure ramping, there is some sanity, mainly just from the narative that there is a bubble [now] and its probably not a goos thing

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http://www.independent.co.uk/money/mortgages/millions-face-becoming-mortgage-prisoners-as-rise-in-interest-rates-could-trap-to-23m-homeowners-9399137.html

And today (but HPC will not let me post without moderating so perhaps someone could post this as a separate thread)

Millions face becoming ‘mortgage prisoners’ as rise in interest rates could trap to 2.3m homeowners

What about the millions trapped into paying rents for the foreseeable future because house prices have rushed ahead of their earning capacity.......people do a mixture of jobs have a mixed income, so it is only reasonable that they have a mix of suitable property to buy.

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More clap-trap about saving the green belt though - personally I wish someone would 'concrete over' some of the endless fields of rapeseed round here - they are ugly and toxic to anyone with allergies...

And the rubbish about how prefabs would slash the cost of housing - it's the land with planning permission that's the major cost factor here - a tent on land with planning permission would be way more expensive than a mansion on an acre without it...

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More clap-trap about saving the green belt though - personally I wish someone would 'concrete over' some of the endless fields of rapeseed round here - they are ugly and toxic to anyone with allergies...

And the rubbish about how prefabs would slash the cost of housing - it's the land with planning permission that's the major cost factor here - a tent on land with planning permission would be way more expensive than a mansion on an acre without it...

Its the Radio 5Live Phone-in topic today - call in and tell them so!

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http://www.independent.co.uk/money/mortgages/millions-face-becoming-mortgage-prisoners-as-rise-in-interest-rates-could-trap-to-23m-homeowners-9399137.html

And today (but HPC will not let me post without moderating so perhaps someone could post this as a separate thread)

Millions face becoming ‘mortgage prisoners’ as rise in interest rates could trap to 2.3m homeowners

millions faced this issue the day they signed up for a cheap deal at the limit of their spare cash.

Edited by Bloo Loo

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Not a single mention of removing tax advantages from second home owners or implementing an empty home tax.

Maybe if it'd've been 'Twelve things...'. Just out of interest, which of the two 'Ten things' would you have removed to make room for your two?

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Maybe if it'd've been 'Twelve things...'. Just out of interest, which of the two 'Ten things' would you have removed to make room for your two?

Actually, now that I think of it, maybe a better question (and perhaps to HPC.co.uk generally) would simply be: What would your ten things be? But I bet, by and large, HPC folk would only have two or three things... :)

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Spencer Dale, the Bank's chief economist, said that just like cooking food, the housing market can pass from cool to hot in the matter of a "few economic seconds".

As if by magic - and never in the opposite direction. An izzy wizzy Sooty and Sweep economy.

Best just to sell everything else, borrow to the max and pile it all into property - it always goes up. Get relatives, friends and neighbours to put a bit in as well.

Disclaimer

This is not investment advice (just in case).

Edited by billybong

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1) LVT rather than ctax, stld and CGT on property

2) Cancel all the state housing market interference/props ('limit HTB' is laughable)

3) Prosecute mortgage fraud, both current and previous

4) Raise interest rates

5) Ban IO (I know it makes sense for some individuals, but clearly the banks can't be trusted on this)

6) Constitutional ban on bank bailouts

7) No need to ban foreign 'investment' in housing; just tax the sh*t out of it

8) Build more houses - if the BoE can QE hundreds of billions to give to banks, then it could be spending that building houses

9) Change the planning laws to fundamentally respond to population change

10) Reform the rental market to give a better deal to tenants

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millions faced this issue the day they signed up for a cheap deal at the limit of their spare cash.

There was no shortage of excuses in 2008, for buyers doing exactly the same with 110% mortgages... apparently they weren't entitled and reckless borrowers outbidding others for years, but "They just wanted a home" / "Media to blame for seeing it easy on the telly".

Through to today ("BTL is the new savings account" & "No one wins in a crash".) If we do get a softening in prices, let's hope the same people don't start getting on their violins again ("They thought it sensible to rush to buy before MMR kicked in") for another 6 years of bailout policies - victim excuses to really protect high values for older property wealth and landlords.

This guy is close, and I like his point about BoE tightening actually saving "the victims" if it cools things, but then he goes straight back to supply and demand. Unless he means it could bring out more supply, post-tightening. Although MMR already active, it could be tightened up even more. I mean buyers are currently so blameless pushing and falling over one another to pay higher prices. Including on woman on MSE forum offering £17K above (£250K asking price) without even having been to view.

20 May 2014.... There are now suggestions that the Bank of England may step in to cool down the overheating market. David Galliard has worked as an estate agent in London for the last 30 years.
"The only thing they can do is to make it tougher to get mortgage," he says. "Believe me, it’s not easy to get a mortgage you have to jump through so many hoops, you have to have a substantial deposit, which isn’t a bad thing and even if you’re going to use the government help to buy scheme you still need a substantial deposit to go forward."
...Galliard says interference from the Bank of England could have a positive effect on first time buyers.
"I think it helps people realise they’re not going to get priced out of the market and someone is looking out for them. It’s always going to be down to supply and demand. If there isn’t enough supply, demand is going to increase. We all need somewhere to live."

Edited by Venger

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I've mentioned this before but I'd also change local planning laws to allow councils (and private firms) to open residential caravan parks with a postal address, hardstanding and utilities, to allow people to live in camper vans or caravans. This would be cheap housing and highly flexible because owners could just up and move to where the work was.

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Although MMR already active, it could be tightened up even more.

I do wonder if all the posturing we are seeing from the BoE and U-turn dave is to do with MMR/FLS Removal....i.e. the are sending out the bubble message ( which is obviously is, if only they'd listened to me ) and something has to be done about it as they know fine well what's about to happen.

I'm not sure how that fits in with the election plan...however, sometimes when you've won a barrel of dog s**t when it was supposed to be a barrel of beer you don't really want to win another one. If they crash the market now just in time for labour to come to power and they then have to preside over the worst 5 economic years in British history the tories could well end up in government after that for 20 years.

Edited by TheCountOfNowhere

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MMR won't help at all. All that will happen is that buyers disappear because they can't get mortgages, and as interest rates are low sellers are under no pressure to sell. Ergo the housing market will go into complete gridlock which is where we were in 2008/9 after the crash.

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I've mentioned this before but I'd also change local planning laws to allow councils (and private firms) to open residential caravan parks with a postal address, hardstanding and utilities, to allow people to live in camper vans or caravans. This would be cheap housing and highly flexible because owners could just up and move to where the work was.

You do know there isn't really a shortage of housing.

What we really have here in the UK is a shortage of decent peolpe in government.

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I've mentioned this before but I'd also change local planning laws to allow councils (and private firms) to open residential caravan parks with a postal address, hardstanding and utilities, to allow people to live in camper vans or caravans. This would be cheap housing and highly flexible because owners could just up and move to where the work was.

Trailer parks? Have we got to that point? What next, favelas?

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MMR won't help at all. All that will happen is that buyers disappear because they can't get mortgages, and as interest rates are low sellers are under no pressure to sell. Ergo the housing market will go into complete gridlock which is where we were in 2008/9 after the crash.

Yes, of course, another victim. Buyers falling away means ALL sellers will hold out for prices with fewer people able to offer them what they want.

There has never been a collapse in buyers ever ever causing a crash in the past. It's not like even tulip bubble can be traced back to an exact day when no buyers were willing to bid at an auction.

Come on, get on the violin for these thinkers.

Edited by Venger

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Yes, of course, another victim. Buyers falling away means ALL sellers will hold out for prices with fewer people able to offer them what they want.

There has never been a collapse in buyers ever ever causing a crash in the past. It's not like even tulip bubble can be traced back to an exact day when no buyers were willing to bid at an auction.

Come on, get on the violin for these thinkers.

what's your point?

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MMR won't help at all. All that will happen is that buyers disappear because they can't get mortgages, and as interest rates are low sellers are under no pressure to sell. Ergo the housing market will go into complete gridlock which is where we were in 2008/9 after the crash.

They can withdraw from the market if they choose. As such, they are no longer in the market so have no influence on prices. Houses will still have to be sold. Death, divorce, etc. Actual selling prices set the market price, not opinions of those not even in the marketplace.

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