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Turnbull2000

Liverpool Council Hopes To 'rescue' Local Property Market

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Liverpool Daily Post - Council in loans bid to revive housing market

LIVERPOOL’S housing market could be reinvigorated by gilt-edged council loans.

The city council is considering injecting cash into the bottom of the market to ease the “mortgage famine” caused by the credit crunch.

Concerns over falling house prices and a sales slump prompted senior councillors to ask for a feasibility study on offering the Town Hall mortgages.

The scheme could help victims of the crunch, especially first-time buyers and low-income families, get onto the property ladder.

Mortgages are becoming increasingly hard to come by as banks are being more choosey about who they lend to. The rising cost of food and energy bills, along with the economic downturn, is forcing more borrowers to default on loans.

Homebuyers looking to buy in housing market renewal (HMRI) areas – particularly in north Liverpool – are most likely to qualify for the loans.

It would be the first time in more than a decade that Liverpool City Council has offered them mortgages.

Edited by Turnbull2000

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Madness. "Council in bid to keep young people in artificially high debt for the rest of their lives" is what it should read.

Kalm down, Kalm down.

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"It would be the first time in more than a decade that Liverpool City Council has offered them mortgages."

Does this mean that they did it during the last crash?

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What a joke of an article!

No mention of how much money they would be able to provide, and only this to say about where it would come from:

It is unclear exactly how the new loans would be arranged.

Cash would probably come from either a partner working with the council or the open market.

What makes them think they'll be able to offer a better deal than the high street mortgage banks? What makes them think that anyone will take the money, even if they could?

I expect we'll hear about a lot more of these loony "(local) government rides to the rescue" stories over the next few months. They'll then be quietly swept under the carpet as they prove to have absolutely no effect on the market.

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What a joke of an article!

No mention of how much money they would be able to provide, and only this to say about where it would come from:

What makes them think they'll be able to offer a better deal than the high street mortgage banks? What makes them think that anyone will take the money, even if they could?

I expect we'll hear about a lot more of these loony "(local) government rides to the rescue" stories over the next few months. They'll then be quietly swept under the carpet as they prove to have absolutely no effect on the market.

Local government used to be quite a significant provider of mortgages, especially for those exercising their right-to-buy.

I think a local authority might not be able to offer a better deal than banks, but banks are not offering any deals right now.

I think, though, that any capital expenditure of this type would be best put into purchasing homes for rent on secure tenancy terms.

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I think a local authority might not be able to offer a better deal than banks, but banks are not offering any deals right now.

That might be overstating the case somewhat. If you are not a pathological credit risk, you can prove your income and you have a reasonable deposit, you can still get quite a generous mortgage. As crown (amongst others) has pointed out on another thread, the mortgage market has very nearly returned to what might once have been considered normal.

This idea of LAs offering mortgages scares me deeply. If the mainstream mortgage industry itself can get itself into the sort of mess we're seeing right now, then what makes these second-rate politician wannabes believe they can do any better?

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That might be overstating the case somewhat. If you are not a pathological credit risk, you can prove your income and you have a reasonable deposit, you can still get quite a generous mortgage. As crown (amongst others) has pointed out on another thread, the mortgage market has very nearly returned to what might once have been considered normal.

This idea of LAs offering mortgages scares me deeply. If the mainstream mortgage industry itself can get itself into the sort of mess we're seeing right now, then what makes these second-rate politician wannabes believe they can do any better?

They are not wannabes - such mortgages have been around for along time. And they have a history of prudent lending.

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This idea of LAs offering mortgages

Not unusual a few decades ago.

Let values settle to where they ought to be.

A £15,000 loan for a new build flat representing 75% LTV ...... why not?

Unless a three bed terrace is cheaper of course :D

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They are not wannabes - such mortgages have been around for along time. And they have a history of prudent lending.

You clearly have a higher opinion of your local councillors than I do!

What I'm saying is that prudent lending is already available. The only thing that will sustain house prices at these levels is an injection of imprudent lending, and I don't see anyone stepping forward there.

Historically, I expect it made sense for LAs to hold some residential mortgage debt - it makes for a useful income stream and they can target the funds they lend out according to their local development agenda. But in the current climate, the idea really does make me shudder. These debts are going to go bad faster than milk in a sauna.

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I'm curious to know when it became the local council's job to act as a bank.

Any help to young people to get on the property ladder should (if provided at all) be commensurate with help for young people to pay their rent.

The council providing mortgages will help to keep house prices high - which will keep rents high. So help for mortgagees should be matched by help for renters.

Why your generation is sitting back taking this baffles me.

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You clearly have a higher opinion of your local councillors than I do!

What I'm saying is that prudent lending is already available. The only thing that will sustain house prices at these levels is an injection of imprudent lending, and I don't see anyone stepping forward there.

Historically, I expect it made sense for LAs to hold some residential mortgage debt - it makes for a useful income stream and they can target the funds they lend out according to their local development agenda. But in the current climate, the idea really does make me shudder. These debts are going to go bad faster than milk in a sauna.

I agree with your second and third paragraphs. As to the first, I would point out that council finance officers make the decisions, or made, in the case of Liverpool City Coiuncil.

I would also point out that in my original posting on this topic I said that capiatl expenditure on hosuing by LAs was better put, IMO, into social housing than in encouraging FTBs when prices are still going down.

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I hear the council are employing the two liverpool ladies in the auction vid in my sig. as consultants.

How NOT to bid at a property auction (Scousenfraude)

:lol:

I went to Liverpool the other week. It seemed full of half finished new build / btl shoebox flats and a massive new shopping centre, (also unfinished) arriving just in time for the death of retail.

What a joke, not even finished and we're over halfway through the ciity of culture year :rolleyes: They are in BIG trouble.

But to put it in perspective, I also visited Blackpool, last Friday. It was really grim & scary, a monument to decay and stag do's. what is that place like at night? :blink:

Edited by Saving For a Space Ship

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The city council is considering injecting cash into the bottom of the market to ease the “mortgage famine” caused by the credit crunch.

...so that won't be for a while yet then... :unsure:

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I would point out that council finance officers make the decisions, or made, in the case of Liverpool City Coiuncil.

True - although having heard stories from members of my family who have worked in local government offices, that still doesn't give me the warmest of warm fuzzy feelings about where my council tax will be going :)

I would also point out that in my original posting on this topic I said that capiatl expenditure on hosuing by LAs was better put, IMO, into social housing than in encouraging FTBs when prices are still going down.

Yes indeed, and I think I forgot to actually agree with that out loud. Councils buying up property for social housing is a good idea - unless they get badly ripped off in the process, of course. If they can get a "good enough" deal, then it probably is the least worst option.

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Local government used to be quite a significant provider of mortgages, especially for those exercising their right-to-buy.

I think a local authority might not be able to offer a better deal than banks, but banks are not offering any deals right now.

I think, though, that any capital expenditure of this type would be best put into purchasing homes for rent on secure tenancy terms.

My grandparents bought their house in 1957 with a local council mortgage - 6% fixed for the whole 25 years.

Of course, back then, houses were priced as buildings to live in.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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