B And B To Pass On Interest Rate Cuts To 90% Of Their Customers.

[enrieb]

If the interest rate keeps being lowered won't the lenders start to demand even larger deposits to balance out the risk?

[time 2 raise interest rates]

The problem is that most of them have got people living in them who want to move somewhere else! I'm less concerned with the renter currently in more-or-less satisfactory accommodation who will be able to buy (if s/he wants) in a year or two when prices have dropped enough, as with the seriously "under-housed" - people stuck with living in overcrowded conditions with parents or whatever - who will only be able to afford either to buy or rent if more i.e. extra houses are built in areas where there are jobs and transport links. House prices at a level where they are lower than the actual cost of the labour and materials needed to build them (ignoring land costs) are not going to benefit these people, as they won't be built except by the Government ( using what? yet more taxpayers money?)

Half of Liverpool, Leeds, in fact any other major city you care to think of, 80% of the new build housing stock is laying empty. A shortage of

housing is a VI myth. When a few million migrants scoot in the recession, and the buy to letters realise they've got no one to rent their

depreciating asset to will probably decide to bite the bullet and cut their losses and sell allowing a few hundred thousand more cheap properties

to be bought up by the eagerly awaiting and rather shrewd first time buyers. the best time to buy a house is in the middle of or near the end of a

recession. There will be one coming to a street near you some time soon.

Edited November 7, 2008 by time 2 raise interest rates

[time 2 raise interest rates]

If the interest rate keeps being lowered won't the lenders start to demand even larger deposits to balance out the risk?

Probably but this again will work in the FTBers or the sell to renters favour, last year the ave house price was £200,000 so a 10% deposit of

£200,000 would have been £20,000, but when house prices fall back to around £120,000 a 10% deposit will be £12,000 you're quids in all round.

Edit i edit 99.9% of my posts because i just can't type, it may help if i checked them before posting them and not after.

Edited November 7, 2008 by time 2 raise interest rates

[cartimandua51]

Half of Liverpool, Leeds, in fact any other major city you care to think of, 80% of the new build housing stock is laying empty. A shortage of

housing is a VI myth. When a few million migrants scoot in the recession, and the buy to letters realise they've got no one to rent their

depreciating asset to will probably decide to bite the bullet and cut their losses and sell allowing a few hundred thousand more cheap properties

to be bought up by the eagerly awaiting and rather shrewd first time buyers. the best time to buy a house is in the middle of or near the end of a

recession. There will be one coming to a street near you some time soon.

And just what does this 80% (taking your figure as correct for the time being) consist of? 1 & 2 (if you're lucky) bedroom high-rise apartments. Do you want to live / bring up a family there? The only people who do are the "young professionals" so beloved of BTLs. Of course they will come hideously unstuck on these properties. Doesn't change my argument about houses

You also quote Leeds and Liverpool - problem is that most of the jobs are in the South-East. The UK has a historical problem here - until the Industrial Revolution the North was relatively sparsely populated; then the big cities of Manchester, Newcastle, Leeds, Sheffield etc were either created or massively expanded and housing was thrown up with the manufacturing jobs.

Those jobs have gone, and the population bias is back to the South with the easy connections to mainland Europe. You won't find 80% of new housing stock empty in Bristol or Oxford or Southampton, let alone London. Even some God-awful new developments round the Elephant & Castle seem to have been selling much better than I had anticipated (I used to live there).

More HOUSES needed for families and they aren't going to be built if prices fall too far, too fast (unless there's a major deflation in wages as well)

[time 2 raise interest rates]

There is no shortage in the UK housing stock. There's been a problem caused by the influx of a few million cheap migrant workers that Labour

encouraged in order to suppress UK workers pay but this problem should ease when the few million cheap migrant workers find there's no work

in the coming recession and leave. I'm in two minds about this, why would they leave when they can get everything they want for free from the

UK tax payers? So let's say possibly one million out of the two million will go. That should free up quite a lot of properties although it won't help

the buy to letters too much as they won't have anyone to let their depreciating assets to.

There is a guy on BBC news 24 now as I type from Shelter, he is saying, 'THERE ARE OVER 1 MILLION PROPERTIES SITTING EMPTY IN THE UK

AT THIS MOMENT IN TIME.' What bit don't you get? There is no shortage just people trying to manipulate a shortage in order to keep house

prices high. It worked all the time the banks could lend money to anything that breathed, then parcel it up and sell it on to a greater fool.

[time 2 raise interest rates]

I guess it's fair to say that owners of these ONE MILLION EMPTY PROPERTIES IN THE UK were happy to leave them sitting empty all the time

house prices were rising but now they're crashing fast one would assume they would soon start selling them on the open market which will

only speed up the house price crash even faster.

As house prices are now back to Sep 2005 prices at £168,000 down from £200,000 in Aug 2007 i don't see them holding out much longer.

[time 2 raise interest rates]

Just think them ONE MILLION EMPTY PROPERTIES IN THE UK could house about 4 million people or if you do the sums with the migrants as they don't

mind sleeping 10 to a room about 20 million migrants could be housed.

Edited November 8, 2008 by time 2 raise interest rates

[cartimandua51]

There is no shortage in the UK housing stock. There's been a problem caused by the influx of a few million cheap migrant workers that Labour

encouraged in order to suppress UK workers pay

Are you seriously trying to say that there was no housing shortage prior to 1997 / accession of E European countries to the EU??? Look up some old news articles!

but this problem should ease when the few million cheap migrant workers find there's no work

in the coming recession and leave. I'm in two minds about this, why would they leave when they can get everything they want for free from the

UK tax payers?

Oh dear. But racism / rampant BNP jingoism isn't really relevant to this argument so I'll pass on.

So let's say possibly one million out of the two million will go. That should free up quite a lot of properties although it won't help

the buy to letters too much as they won't have anyone to let their depreciating assets to.

There is a guy on BBC news 24 now as I type from Shelter, he is saying, 'THERE ARE OVER 1 MILLION PROPERTIES SITTING EMPTY IN THE UK

AT THIS MOMENT IN TIME.' What bit don't you get?

I watched this, evidently more closely than you did, because he wasn't from Shelter he was from The Empty Homes Agency; another organisation entirely.

"David Ireland, a spokesman for housing charity The Empty Homes Agency, said the solution could lie behind boarded-up homes. " (BBC website)" There are believed to be one million empty homes nationwide. "

Note the words "homes" and "Nationwide" . If you read my post with any care you'd have noted that I said what was needed was houses for families, where the jobs are. 200.000 empty high rise flats in Liverpool and Manchester do NOT address this problem!

BTW, the example that they chose to stand in front of - the Heygate /Aylesbury estates in Elephant and Castle - were due to be torn down - about 20 years after they should have been. They were part of a Labour leader of the London, Herbert Morrison (Peter Mandelson's grandfather!) efforts to as he put it, "build the Tories out of London for a hundred years" A seriously slaggy estate where almost no-one wanted to live. High-rise Stalinist concrete blocks.

Edited November 8, 2008 by cartimandua51

[Ash4781]

you are right, I had forgotten that.

Taxpayers effectively collectively borrow to fund B&B borrowers. And B&B borrowers are not paying taxpayers an appropriate market rate for the risk they represent to us.

Next will be the unfunded tax cuts

[time 2 raise interest rates]

Here we go because i'm not happy about Labour flooding the country with a few million migrants to suppress UK workers pay it's racism.

I think you will find when the Conservative party were in in the 90s with no cheep migrants pay rises were around 9-10% a year but with Labour flooding the

country with cheep migrants it's 2-3% no rocket science needed.

Edited November 8, 2008 by time 2 raise interest rates

[time 2 raise interest rates]

Are you seriously trying to say that there was no housing shortage prior to 1997 / accession of E European countries to the EU??? Look up some old news articles!

Yes, don't believe what you read in the news papers, they have been saying for years house prices only ever go up, and they would double every

few years. It's a shame all those that listened to them last year are now down by £32.000 and a recession is coming.

So much for Gordon Browns now more boom and bust speeches Labour have trashed the UK as they always do.

Edited November 8, 2008 by time 2 raise interest rates