Wednesday, September 26, 2007

“Perfect Storm of Events”

File on 4 investigation into the coming houising crisis

This has to be the best piece the BBC has FINALLY produced so far on the housing misery that is hitting our shores. A great listen for 38 mins. Starts off slow with some dumb Brummies, but gets much better, with some great tongue in cheek line like "property prices always rise, right ?" Shame the BBC haven't decided to allow this to go out on a more main stream channel.

Posted by doomwatch @ 10:41 AM (1943 views)
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17 thoughts on ““Perfect Storm of Events”

  • Err, Radio 4 not a mainstream channel?!

    It has nearly 12% audience share with over 9 million listeners a week. Popular shows regularly attract over two and a quarter million listeners. Trust me, in radio terms it is a _very_ big player.

    Radio 4 listeners are also amongst the most desirable group amongst advertisers and many commercial stations are trying to work out how to tap into this audience.

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  • It is a good listen. I like the way they associated what was happening with Gordon Brown at the end.

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  • Most interestingly for me was the extent and ease with which widespread fraud is taking place in the new build BTL flats market.
    One guy managed to create a £3million portfolio with just £60K put down. Before he went bankrupt.
    They also had a guy who is liquidating his £400million portfolio and said a 20% reduction in prices would be needed before anyone can make a profit again.

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  • Apologies pedagog, I thought Radio 4 was just for crusty University lecturers who think TV is the devils window.

    voiceofreason, agreed the fact that Land Registry figures do not reflect real transaction values, but valuations
    is deeply concerning. Also, the BTL guy selling off his 15 year old massive portfolio said prices needed to drop 20%
    for them to reach a “realistic” level, but would still be above anything to sustain a viable business.

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  • I believe Radio 4 gets a better audience for news and current affairs than any TV channel.

    The mood is changing – even at the Beeb – but The Times remains in denial…

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  • Sold My Soul To The Never Never Never says:

    Radio 4 is a mainstream channel targeted to a certain kind of people the same way the broadsheets are. They are trying to get in early to warn those people of the dangers that lie ahead. The people who are going to end up in a holy mess are the ones who rely on celebrity culture and lifestyle and the magazines that go with it. They have not got a clue what is going on in the real world!

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  • tyrellcorporation says:

    The Times is owned Rupert Murdoch and is vehemently pro Labour. Odd bed-fellows I know!

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  • I listened to the broadcast and it makes me very angry, but also quite sad. The phrase that sticks in my mind is when the “property investor” from Liverpool referred to the “property game”. If that is the case, it is a game without rules. I have no sympathy with the position that she and other find themselves in a result of their greed, dishonesty and stupidity. She and others deserve exactly what is inevitable. It is not a game.
    The sad aspect is the effect this has on perfectly ordinary people. There is no crime in wishing to have a nice place to live and raise a family. Although the family from Birmingham were obviously naiive and had been badly advised, their motivation was at least reasonable. It also makes me sad that the people with their snouts in the trough have profitted (up to now) from these people misery. My oldest daughter works in the repossesions departrment of a building society and she sees the misery that this brings to families. Interesting to note, that she has been offered and accepted paid overtime at evenings and weekends to cope with the volume, which is now up to 30 houses a day.
    I feel a little better now.

    Lastly, I have a question as I am relatively new to the forum. Can anyone tell me what VI stands for ?

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  • Rupert Murdoch and is vehemently pro whoever is in power, be it the Tories, Labour, Greens, Pinks… you name it, he’ll corrupt it.

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  • Verymeanreversion says:

    So there are 4 million subprime borrowers and 12 million mortgage holders. Brace for impact.

    Time for a UK Case/Shiller house price index methinks to avoid this land registry and other index manipulation.

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  • Bit more detail now that it is lunchbreak time:

    The fraud comes about because the BTL portfolio investor and builder of the city centre appartments have a very cosy relationship whereby the price given to the banks and Land Reg are approx 15% higher than the price actually paid. They didn’t say how this was done in practice, but maybe brown envelopes stuffed full of cash or something.
    The net result is that other buyers in the same block see the official Land Reg prices 15% inflated from what the portfolio buyer actually pays. Also the banks have actually given a 100% mortgage which they thought was 85%.

    Net result is that the real prices of these apartments is inflated in official figures.

    (I still think the BBC is biased towards the govt BTW. Channel4 News seems to be well balanced. )

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  • Emigreelookingin says:

    a ha ha, ah ha, haha ah ha, ah ha, bruhahaha, wa hahahaha, haha, ouch my sides!

    I’ve not laughed that hard for a long time. Thanks for making my day 🙂

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  • Yorkshireman @ 9.
    Wow, your daughter is having to work overtime in the repo dept. !!!
    I like these tales from the shopfloor, they cut through the spin that the VI (Vested Interests) put on the whole property market.

    I know someone in mortgage broking who says inquiry levels have fallen by half.
    I wonder if there are any web search engine keyword stats that would show the effect ? Searches for “repossession” vs searches for “mortgage rates” for instance.

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  • autopilotengage says:

    Absolutely priceless. The presenter has the most amazing sarcastic twang in his voice which most of the interviewees just don’t seem to get. Very amusing indeed.

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  • Paula the estate agent…. ah aha ahah ahhha hahha ahhahha ahhah

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  • A masterpiece!
    can we please have a link from the hpc home page?

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