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Natiowide Officially Blame Gordon For Housing Crisis

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http://www.housefund.co.uk/2007/06/nationw...n-brown-to.html

Nationwide Building Society has challenged Gordon Brown to put hard-pressed home buyers and savers at the top of his agenda through real reform that will make a genuine difference.
Nationwide said that over the last decade, affordability of property in the UK has deteriorated significantly - house prices have increased by 215% and initial mortgage payments, as a percentage of take home pay, have more than doubled (around 22% in 1997 compared to 45% today).
In addition to this, the cost of stamp duty has increased enormously. Back then, the typical house price was £58,196 which was below the £60,000 stamp duty threshold at that time. Today, homebuyers face a stamp duty bill of over £1800, based on a typical house price of £181,584.
Nationwide would like to see more help for hard-pressed homebuyers. As property prices continue to rise, an increasing number of people are victims of high levels of stamp duty. Nationwide believes that the burden of stamp duty should keep pace with rising house prices and calls on the Prime Minister and his Chancellor to link stamp duty limits to house price inflation.
If the stamp duty threshold had been raised in line with house price inflation since 1993 it would now stand at £210,000, instead of the current figure of £125,000.

Now that its over the blame game gets underway. Bottom line for Nationwide is that Gordon's miracle is going to cost them dearly when the repos start gathering pace and the lawyers start suing them for breach of fiduciary duty etc.

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I don't get this blaming thing, it's not like people are forced to spend their money. If people don't do research, don't consider the fundamentals and spend beyond their means then they are ultimately responsible. Admittedly Gordon Brown and his cronies set people up for a fall, but that was very obvious, and I think that anyone who voted labour has some responsibility for that. I don't feel sorry for people who have bought property beyond their means because they are the ones who are forcing house prices up and putting themselves at risk. My brother bought a new build a year ago, 4 bedroom in Scotland, detached for £180,000. I guarentee that it cost less than £90,000 including the land and services to build, the workmanship is terrible on everything from hanging doors to plumbing, to electrics to even installing light switches squarely. The quality of fittings is dirt cheap. Yet people ar not only willing to pay for this crap but paying vastly over the odds.

The people I feel sorry for are people who have saved carefully, not relied on public hand outs, not spent wildly and who might see their savings ruined with inflation. I might end up in this situation myself, I was wondering what options are available to prevent savings becomming worthless.

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all the governemnt needs to do is re-introduce housing into the cpi.

There was no chance of that while prices were rising. Once prices start falling it's in.

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It's mortgage payments that should be in the CPI, not house prices.

No, that won't work very well. It introduces positive feedback into the system:

(1) BoE sees inflation going up

(2) BoE raises interest rates

(3) Higher interest rates cause mortgage payments to increase

(4) Higher mortgage payments cause CPI to increase

(5) BoE sees inflation going up

(6) BoE raises interest rates...

I'm not sure exactly what's the best way to include housing costs in the inflation measure, but I don't think it's that.

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http://www.housefund.co.uk/2007/06/nationw...n-brown-to.html

[Today, homebuyers face a stamp duty bill of over £1800, based on a typical house price of £181,584.

Hmm less than 1% tax which seems quite reasonable to me and I'm sure the Nationwide will roll the stamp duty into the mortgage along with arrangement fee's.

How do they write this twaddle, and keep a straight face at the same time?

Edited by rover2000

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I think the Nationwide should be careful what it wishes for:

Nationwide said that over the last decade, affordability of property in the UK has deteriorated significantly

If affordability were to suddenly improve with a big HPC then I think that they might be blaming Gordon for improving affordability too quickly and putting out a press releases suggesting he does something about making houses less affordable..

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Nationwide would like to see more help for hard-pressed homebuyers. As property prices continue to rise, an increasing number of people are victims of high levels of stamp duty. Nationwide believes that the burden of stamp duty should keep pace with rising house prices and calls on the Prime Minister and his Chancellor to link stamp duty limits to house price inflation.

Homebuyers would like you lenders to stop throwing money at anyone in order to fuel 'miracle economy'. People are victims not because of stamp duty but because of high property prices that is fuelled by your stupid & corrupted lending practises. Homebuyers would also like you lot to stop throwing your toys out of pram whenever your corrupted practises come back to bite your a**e!

Lastly homebuyers would like to remind you that your VI to blame anyone & anything but yourself, for high house prices, is pathetic.

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No, that won't work very well. It introduces positive feedback into the system:

(1) BoE sees inflation going up

(2) BoE raises interest rates

(3) Higher interest rates cause mortgage payments to increase

(4) Higher mortgage payments cause CPI to increase

(5) BoE sees inflation going up

(6) BoE raises interest rates...

I'm not sure exactly what's the best way to include housing costs in the inflation measure, but I don't think it's that.

It already happens with RPI. Which is why RPI-X is the only inflation index currently worth its salt.

You would have to include house prices rather than interest payments into a measure of inflation.

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