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Half of all housebuilding 'backed by government'

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Half of all housebuilding 'backed by government'

https://www.constructionnews.co.uk/data/half-of-all-housebuilding-backed-by-government/10018945.article

Hewes said the data showed that “as long as the government keeps pouring the money in, housebuilding can keep going”. “In previous years when looking at housing forecasts, we would discuss earnings, employment, real personal disposable incomes. But now people just say: what’s the government going to do?”

States that 57% of those who used HTB could have purchased a house without the scheme with around 11% of those households earning more than £100,000.00 annually.

 

 

 

 

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2 hours ago, Mapatasy said:

Half of all housebuilding 'backed by government'

https://www.constructionnews.co.uk/data/half-of-all-housebuilding-backed-by-government/10018945.article

Hewes said the data showed that “as long as the government keeps pouring the money in, housebuilding can keep going”. “In previous years when looking at housing forecasts, we would discuss earnings, employment, real personal disposable incomes. But now people just say: what’s the government going to do?”

 

States that 57% of those who used HTB could have purchased a house without the scheme with around 11% of those households earning more than £100,000.00 annually.

 

The scale of the subsidy now required to keep the ponzi upright is breathtaking. Way beyond even the Brown years.

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.

Quote

Hewes said the data showed that “as long as the government keeps pouring the money in, housebuilding can keep going”

"Housebuilding can keep going" - yet it's still at record lows despite "pouring the money in".

Considering that one of the justifications given to the public for pouring their money in was that it would boost the numbers of new homes being built the policy has been an abject failure.

Quote

But now people just say: what’s the government going to do?”

Easy.  Make a dog's breakfast of it as usual but make sure to line their own pockets in the process.

Edited by billybong

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We really do have the most spineless government imaginable and the laziest begging companies to go with it. Why even bother anymore? I've lost all sympathy and couldn't give a shit if they stopped building houses tomorrow. Or built a million luxury studio flats. Or - who cares. The lot of them should be ashamed of this utterly dysfunctional system that no one has the guts to reform.

 

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5 hours ago, hotairmail said:

And relaxing capital controls allowing banks and building societies to borrow cheap money (trade surpluses) on the global capital markets to recycle back into our housing market.

+ 1986 Building Societies' Act breaking down the distinction between banks and building societies. Buildiong Societies were formerly primarily responsible for the domestic savings and mortgages markets. Now faced competition from banks and their ability to borrow on the capital markets was allowed by this Act to allow them to compete. To gain full access to capital markets the Act forced them to take the step to demutualisation. It's all by deliberate design. Put the rules out there and wait for the inevitable decisions to be made.

Oh, and let's not forget Big Bang

But there's plenty of blame to go round. Brown/Blair had plenty opportunity to change things as did Osborne/ Cameron but they all drunk at the same fountain of borrowing and the money spigot and illusion of 'growth'..

Good points.  In fairness to Mrs T she did raise interest rates and reduce  MIRAS - I mean, at least there was a bust after the boom...

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7 hours ago, buckers said:

Are you going to blame Fatcher for this next?

What an odd response. 

The current Conservative party are massive hypocrites is the point.

The Tories have always been the landlord party, this is really just reverting to type.

 

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7 hours ago, buckers said:

Are you going to blame Fatcher for this next?

Ouch, sounds like that hit a nerve. You still voting for the blue team then? Don't worry, I'm sure they will step back and let markets work any... minute....

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3 hours ago, dryrot said:

Good points.  In fairness to Mrs T she did raise interest rates and reduce  MIRAS - I mean, at least there was a bust after the boom...

and was kicked out of office.

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8 hours ago, hotairmail said:

And relaxing capital controls allowing banks and building societies to borrow cheap money (trade surpluses) on the global capital markets to recycle back into our housing market.

+ 1986 Building Societies' Act breaking down the distinction between banks and building societies. Buildiong Societies were formerly primarily responsible for the domestic savings and mortgages markets. Now faced competition from banks and their ability to borrow on the capital markets was allowed by this Act to allow them to compete. To gain full access to capital markets the Act forced them to take the step to demutualisation. It's all by deliberate design. Put the rules out there and wait for the inevitable decisions to be made.

+1988 Housing Act which introduced the Assured Shorthold Tenancy with less security https://en.wikipedia.org/wiki/Assured_shorthold_tenancy

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On 11/04/2017 at 11:53 AM, Eddie_George said:

Which will they save, Sterling or house prices?

The UK is in for a world of pain whichever they choose.

House prices of course.  Got to keep the plates spinning.

The point of having your own sovereign currency is that you can throw it under the bus when is suits you to do so.  And a trashed pound reduces sterling denominated debt burden and makes UK manufacturing look more competitive.  They won't spend more than about 2 microseconds 'debating' what to do.

 

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Just had an email about a new 1.29% five year fix. So someone is betting against sterling... or banks are taking losses on mortgage lending in order to keep the bubble alive.

The broker also kindly pointed out that 'now is a good time to buy as house prices actually fell last month'. And proceeded to give a numerical example of how repayments were unnecessary if house prices rise another 30% in the next four years.

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6 hours ago, Sour Mash said:

a trashed pound reduces sterling denominated debt burden

Trashing the pound only makes it easier for the government to pay off sterling denominated debts if tax revenues increase in nominal terms. This might not happen in a basketcase economy full of bubbles and malinvestments.

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On 11/04/2017 at 7:14 PM, DrBuyToLeech said:

What an odd response. 

The current Conservative party are massive hypocrites is the point.

The Tories have always been the landlord party, this is really just reverting to type.

 

Labour were no different, the eliminated Boom and Bust... just imagine Blair won the let join the Euro affair... they turned most of the country working classes into financial slaves by pumping liquidity into the economy, to drive up inflation, low unemployment, creating wage stagnation. The increase Asset values reminds me of the dot com crash (Classic pump and dump strategy)

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On 11/04/2017 at 7:14 PM, DrBuyToLeech said:

What an odd response. 

The current Conservative party are massive hypocrites is the point.

The Tories have always been the landlord party, this is really just reverting to type.

 

I could afford a house until Tony Blair got going tbf

Labour pumped it up the conservatives just doubled down.

 

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