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Newcastle City Council Hopes To Underpin House Prices

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Shields Gazette - Council to help people onto the housing ladder

STRUGGLING homeowners and first-time buyers could be thrown a lifeline by councils buying into properties in the region.

Newcastle City Council is considering buying part-shares in hundreds of homes to stop families being thrown out as they face soaring mortgage bills.

Yesterday other councils in North East England said they would be interested in the scheme.

NewADVERTISEMENT, unsold homes could also be snapped up to help first-time buyers and keep the property market afloat under proposals being examined by the authority.

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I'm sure all those Geordies will revel in the fact of their Council Tax bailing out mortgagees........ particularly the ones that MEW'd all the way to the top.

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Exactly. Where are they going to get the money to do this from?

AFAIK councils up and down the land aren't exactly wallowing in spare cash.

Could they borrow it and make the hard working council tax payers fund it?

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if true, this has to be the most skewed council in the country.

using the community tax funds of people in the borough to fund the private debt of others.

its no way legal. can you imagine the poll tax chaos among renters paying for home owners debts ?

no way. this is just one of those never going to happen silly stories.

Mr Shepherd said the possibility of buying unsold new homes outright would be about keeping the housing market going and underpinning the North East economy.

also. since when has peoples housing debt been the local economy ?

the whole housing, borrowing, debt idiocy is all really coming out now.

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How does the council buying unsold properties help FTBs, unless they're going to sell them on at a loss?

Easy, just put a load of housing benefited chavs in there, and that will drive the prices of the other luxury flats down to a level FTbs can afford.

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Sure. Or central government. Who has stopped lending to the government?

What terms do you think the banks would give a council who is buying up residential property in this market?

I am not saying you're wrong, just it's unlikely. Also as far as I was aware the local councils do not borrow money from central gov't.

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From Northern Rock. :P

that would close the loop.

how bizare would that be...if NR did deals with councils to buy up un sold stock, to then sell as 'property bonds' (with guaranteed income), underwritten by the govt who owns the bank and funds the council, not quite a gilt but... :blink:

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Meanwhile, in the crazy topsy-turvy world of the people that run our society and those who report on it, a report from BBC Look North.

Click here to watch this report (embedded video on a BBC "News" page)

They believe that more expensive houses should be built on historically-poor Tyneside to attract professionals to the region.

You couldn't make it up. :angry:

EDIT - Just to say this was from last night's programme.

Edited by Pacific State

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Meanwhile, in the crazy topsy-turvy world of the people that run our society and those who report on it, a report from BBC Look North.

Click here to watch this report (embedded video on a BBC "News" page)

They believe that more expensive houses should be built on historically-poor Tyneside to attract professionals to the region.

You couldn't make it up. :angry:

EDIT - Just to say this was from last night's programme.

This 'ar5e over tit' cycle always gets me, "build it and they will come", no chance. Went to the new Liverpool One development last night...pointless and really poor architecture, but never mind that, here's the pitch;

"OK, we build a new shopping centre, now all the bright young things will work there and then walk to their new inner city apartment (bought with a 100% mortgage on ten times income), where they can juice a few bits of fruit and then get on the x-trainer in their super new gym and then have a super night out in the multiplex finished off by a super cocktail in the latest bar..."

Only falls down at the first stage; pay peanuts and the monkeys stays at bottom of tree waiting for them (peanuts) to fall for free. How can you build a micro economy based on; selling cheap imported tat, at ever decreasing margins, and more importantly how will these 'bright young things' (en masse) ever escape that cycle?

Edited by Converted Lurker

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"OK, we build a new shopping centre, now all the bright young things will work there and then walk to their new inner city apartment (bought with a 100% mortgage on ten times income), where they can juice a few bits of fruit and then get on the x-trainer in their super new gym and then have a super night out in the multiplex finished off by a super cocktail in the latest bar..."

Sounds a bit like the Chinese pitch:

"We'll open a new mine here, build a village next to it, move the workers in, pay them in tokens, build a shop in the village, and allow the miners to only spend their tokens in it."

Except that this would be in chinese of course:

我们将开启一个新的矿井在这里,建立一个村它旁边,动议的工人,支付他们在令牌,建立一个店在村里,并允许矿工只花他们的令牌在它

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Meanwhile, in the crazy topsy-turvy world of the people that run our society and those who report on it, a report from BBC Look North.

Click here to watch this report (embedded video on a BBC "News" page)

They believe that more expensive houses should be built on historically-poor Tyneside to attract professionals to the region.

You couldn't make it up. :angry:

EDIT - Just to say this was from last night's programme.

that made me laugh.

What are these professionals going to do for a living in Newcastle? work for the local 14k average wage?

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that made me laugh.

What are these professionals going to do for a living in Newcastle? work for the local 14k average wage?

Telesales manager? Head up the local Anti-Sexism and Feminine Hygience Outreach Worker program?

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Sounds a bit like the Chinese pitch:

"We'll open a new mine here, build a village next to it, move the workers in, pay them in tokens, build a shop in the village, and allow the miners to only spend their tokens in it."

Except that this would be in chinese of course:

我们将开启一个新的矿井在这里,建立一个村它旁边,动议的工人,支付他们在令牌,建立一个店在村里,并允许矿工只花他们的令牌在它

:lol: except that'd work :unsure:;)

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A joke really, if councils really wanted to do something constuctive in the housing market the first thing they should do is halt the sale of council houses and start building more, not making up make believe schemes which only try to hold up high house prices with public money. Homes will be affordable to FTB when they fall to realistic values.

Edited by TIMSY

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so, the Geordie city council has 2 choices: pay £1 to build council houses which meet criteria on its own land or pay 10 to buy shoeboxes unfit for council housing purposes, with the certainty that they will need extensive overhaul in 10 years due to poor construction.

Knowing the logic up here, it'll be the second.

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  • 395 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% +
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      • Even
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      • up 5%



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