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Telegaph: George Osborne's 'housing Revolution' Election Pledge

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George Osborne's 'housing revolution' election pledge

Apparently wants 500,000 new first time-buyers a year by 2020.

I thought the article at the link would be all about excluding buy-to-let investors, building houses and letting prices correct down so people with on a median wage could buy themselves a home.

I was mistaken, ;) .

Probably best to skip the article if you're being medicated for high blood pressure. Osborne is getting to be quite the ramper.

Edited by bland unsight

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Yep - sounds like 100% demand-side measures. RTB does nothing for the "housing crisis", just adds a few numbers to the FTB column in the short-term, with more BTL down the line. That, plus more tax-payer funded sub-prime to try and keep the Ponzi going is all he's got. I think I actually hate Osborne more than Brown.

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George Osborne's 'housing revolution' election pledge

Apparently wants 500,000 new first time-buyers a year by 2020.

I thought the article at the link would be all about excluding buy-to-let investors, building houses and letting prices correct down so people with on a median way could buy themselves a home.

I was mistaken, ;) .

Probably best to skip the article if you're being medicated for high blood pressure. Osborne is getting to be quite the ramper.

Britain's greatest comedian.

Who said satire was dead.

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Until the average pleb realises that house prices need to fall to enable ordinary workers to buy them, politicians will keep telling these lies.

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George Osborne's 'housing revolution' election pledge

Apparently wants 500,000 new first time-buyers a year by 2020.

I thought the article at the link would be all about excluding buy-to-let investors, building houses and letting prices correct down so people with on a median way could buy themselves a home.

I was mistaken, ;) .

Probably best to skip the article if you're being medicated for high blood pressure. Osborne is getting to be quite the ramper.

If their last manifesto is anything to go by (my sig) I wouldn't take a blind bit of notice of any promises the current Tory leadership may make.

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Theyre chucking claims around like confetti in the run up.

Osborne is just a clone of Lawson.

I think TMT may have just outed himself though. Look at that shiny new kettle!

osborne_2_3256455c.jpg

Edited by R K

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Until the average pleb realises that house prices need to fall to enable ordinary workers to buy them, politicians will keep telling these lies.

The great political taboo - not one of them will say it. I wonder how long until that becomes counter-productive - more (voting) renters than "owners" ought to do it, perhaps even less as I think there are now even a reasonable number of owners (outright ones, I guess) that can see the madness (and don't want their 35 year olds living with them any more).

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Until the average pleb realises that house prices need to fall to enable ordinary workers to buy them, politicians will keep telling these lies.

If they succeed in increasing the housing supply then either house prices or rentals or both will fall

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If they succeed in increasing the housing supply then either house prices or rentals or both will fall

He makes no mention of increasing supply - probably because the effect would be exactly as you describe. Just RTB (swap a secure, long-term tenancy at cheap rates to a mortgage on a discount price (30%? 70%? 100%?) = FTB figures up, no new housing. Increase HTB = higher prices for existing stock, more sub-prime loans, no new housing supply.

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If they succeed in increasing the housing supply then either house prices or rentals or both will fall

Awww bless.

Edited by R K

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He makes no mention of increasing supply - probably because the effect would be exactly as you describe. Just RTB (swap a secure, long-term tenancy at cheap rates to a mortgage on a discount price (30%? 70%? 100%?) = FTB figures up, no new housing. Increase HTB = higher prices for existing stock, more sub-prime loans, no new housing supply.

He mentions expanding HTB I believe, which is about new housing stock

But it is a big if, RK's cynicism is right

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An 80s style boom eh?

I wonder if Osborne cut his breakfast on a mirror or if he just buried his face in it Scarface style?

Edited by byron78

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Yep - sounds like 100% demand-side measures. RTB does nothing for the "housing crisis", just adds a few numbers to the FTB column in the short-term, with more BTL down the line. That, plus more tax-payer funded sub-prime to try and keep the Ponzi going is all he's got. I think I actually hate Osborne more than Brown.

Sounds about right to me.

The bullsh!t spreadsheet cooked up by some recent PPE graduate in Campaign Headquarters to put 'flesh' on this aspiration presumably leans on RTB purchases from housing associations and local authorities. Otherwise, on present construction rates he'll need to find a way to enable FTBers financed with repayment mortgage to outbid BTLers financed with interest-only mortgages on about 100,000 new builds and 300,000 existing properties every year, and that would amount to an awful lot of very large equity loans. Not sure even Osborne really has the appetite for that kind of stake in the staggering UK housing Ponzi.

Edited by bland unsight

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He makes no mention of increasing supply - probably because the effect would be exactly as you describe. Just RTB (swap a secure, long-term tenancy at cheap rates to a mortgage on a discount price (30%? 70%? 100%?) = FTB figures up, no new housing. Increase HTB = higher prices for existing stock, more sub-prime loans, no new housing supply.

Interesting that the supply side economics that was supposed to be such a touchstone of the policies of the Reagan-Thatcher era now seems to be anathema to British conservatives. Now it's intervention, intervention, intervention with each new government initiative to prop up demand following breathlessly on the heels of the last. Everyone in politics now seems to believe in the state propping up the economy. The question is just what bit of the economy and who are going to be the beneficiaries.

Edited by stormymonday_2011

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He makes no mention of increasing supply - probably because the effect would be exactly as you describe. Just RTB (swap a secure, long-term tenancy at cheap rates to a mortgage on a discount price (30%? 70%? 100%?) = FTB figures up, no new housing. Increase HTB = higher prices for existing stock, more sub-prime loans, no new housing supply.

The plan is to surely destroy what is left of social housing as they know full well that most of the stock offered to tenants will end up in the hands of private landlords?

I suspect the predatory loan firms offering mortgages to Council tenants are already powering up

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He mentions expanding HTB I believe, which is about new housing stock

But it is a big if, RK's cynicism is right

I think the only measure which does attempt to address supply is the "starter homes" initiative - a 20% discount on new builds for the under 40's (not me, then). 100,000, of which the first tranch happens this year. Don't see them hitting 500,000 FTB's there - my guess is that if they get anywhere near that figure (doubtful) it will be from a new influx of HA RTB's, which does absolutely nothing apart from give a few social renters a nice windfall (if they cash it in - after which they're homeless). At the expense of the taxpayer, of course (note how all the give-aways are "government funded" whilst all the scroungers are "tax-payer funded", as if this is as a result of Osbourne's own largesse).

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This article mad me laugh (no, in fact it made me livid!)...further down it mentions the new policy on pensions stating ' allowing people to have control of their own assets'....yes....my tax is one of my assets yet somebody decides to support FTB or FLS or even to give foreign aid to a country that whilst its own people starve they are sending rockets to the moon!...don't get me wrong, I don't think any of the other major parties are any different, I am just getting sick of being 'taken for a mug'

and as for RTB from housing association?!...talk about 'cutting the final legs away' from an already wrecked social housing system...these people are either incredibly stupid (not the case...that's us for letting them get away with it) OR they are incredibly devious!

Now, where is my medication...oh, no, I don't have any as its been spent funding £25,000 of anti-viral aids medication for somebody who hasn't contributed to the system!

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I think the only measure which does attempt to address supply is the "starter homes" initiative - a 20% discount on new builds for the under 40's (not me, then). 100,000, of which the first tranch happens this year. Don't see them hitting 500,000 FTB's there - my guess is that if they get anywhere near that figure (doubtful) it will be from a new influx of HA RTB's, which does absolutely nothing apart from give a few social renters a nice windfall (if they cash it in - after which they're homeless). At the expense of the taxpayer, of course (note how all the give-aways are "government funded" whilst all the scroungers are "tax-payer funded", as if this is as a result of Osbourne's own largesse).

agreed

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The great political taboo - not one of them will say it. I wonder how long until that becomes counter-productive - more (voting) renters than "owners" ought to do it, perhaps even less as I think there are now even a reasonable number of owners (outright ones, I guess) that can see the madness (and don't want their 35 year olds living with them any more).

I think this piece is aimed directly at those people with 25+ year old children still at home, but who haven't yet joined the dots to understand why (and are probably still blaming iPods and gadgets).

It comes to something when the electorate is so disillusioned that the govt have to create policies designed for the young in order to appeal to their still voting parents.

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It comes to something when the electorate is so disillusioned that the govt have to create policies designed for the young in order to appeal to their still voting parents.

Osborne's schemes are not designed for the young, they are designed to keep house prices high and give money to developers.

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I have said this before and I will say it again, what do you expect from someone who's old man has an expensive wallpaper shop.

As Osborne was growing up, the family would have a good year or bad year depending on if the country was having a housing boom or not.

The bloke is a total lightweight.

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