Thursday, January 31, 2008

Economist Howard Archer – ‘Housing market activity is now being substantially undermined

700% more borrowers in mortgage 'crisis'

The number of borrowers struggling to meet mortgage payments has soared by 700 per cent, a housing charity has said. Homeowners seeking advice on how to tackle mortgage problems have surged in number from 10,000 to 80,000 in the past year, according to Shelter. The figures were a sign that more and more people were in danger of having their homes repossessed and that ministers needed to act urgently to help those at risk, the charity said.

Posted by jack c @ 10:12 AM (921 views)
Please complete the required fields.



21 thoughts on “Economist Howard Archer – ‘Housing market activity is now being substantially undermined

  • Fine, but the fools are still borrowing and spending…..

    Perhaps they think they can borrow their way out of trouble like the US?

    Reply
    Please complete the required fields.



  • Hurrah! Steal from the prudent to subsidise the idiots. Great. Thanks Labour.

    Reply
    Please complete the required fields.



  • Ministers need to act urgently to safeguard the value of our savings… but they won’t

    Reply
    Please complete the required fields.



  • theboltonfury says:

    . Agree with IBreda, as previously stated before, the only safe place for my money is under my mattress. It seems the only place that GB and his henchmen can’t get it to save the skin of those who live beyond their means.

    You pays your money and you takes your chances. These people have come unstuck, not my problem!

    Reply
    Please complete the required fields.



  • If we all put our money under our mattresses, GB would tax mattresses!!

    Reply
    Please complete the required fields.



  • Theboltonfury says:

    I’m losing much faith in this crash. It seems to have been teetering for ages but never making any headway due to the continual buffers offered to the ‘buy now pay never’ brigade

    Reply
    Please complete the required fields.



  • What really annoys me about this article is that people have gone out and bought properties when they knew they shouldn’t as they could not afford to do so, on the ‘promise’ that these properties will go up in value like all their friends places have over the years and they will make a nice little earner.

    When this doesn’t happen, and they can’t afford the over inflated mortgages they are paying they are blaming others for their greed and others are expected to bail them out – no this is 100% wrong they have to accept they invested and lost – simple as that. they wouldn’t be sharing their profits i fthey had sold up with a nice little earner with those renting who couldn’t ‘afford’ to buy!!!!!!

    It all comes down to risk and reward – Property as does every asset class has a risk reward trade off. You can’t expect to invest in anything over than cash (which still has risk i.e. inflation risk etc) and get a return with no risk. For each step up the ladder of expected return (i.e. bonds need to provide a greater return than cash to make you invest in them other wise you would invest in cash, but there is the extra risk) bonds, property, equities, emerging equities, comodities, etc etc until you get to lottery ticket there is a level of risk you have to accept to be able to get the expected return. This is a capitalist society and that is how it works.

    However people have forgotten this as property has been going one way for so long that there is actually a risk being taken to get the return. Well its all flooding back to them now!!

    Reply
    Please complete the required fields.



  • I personally don’t see why these people neexd to be bailed out with “my” money. I don’t recall them being charitable by dropping the rent on their BTL or letting me borrow their flat screen telly or oversized 4×4. Sure some of these people are innocent, but like boltonfury says – you pay your money…

    Reply
    Please complete the required fields.



  • Quote from article – “Shelter Chief executive Adam Sampson said: ‘The Government, mortgage lenders and the Financial Services Authority must take responsibility and start repairing the broken state safety net to ensure that, if people face difficulty, there is protection in place”

    When two people take out a mortgage they are jointly and severally liable for the loan – borrowers can purchase suitable Life and Critical illness cover, income protection cover/accident sickness and unemployment cover and buildings and contents insurance privately all of which will fully underpin the mortgage in the event of an unforseen change in personal financial circumstances.

    The people who should take responsibility are the greedy self centred borrowers who get themselves up to the eyeballs in debt and then expect a state bail out.

    Reply
    Please complete the required fields.



  • theboltonfury says:

    i had a fiver on Rooney scoring first last night. I fully expect a safety net to be put in place to make sure that my stake is returned promptly and in full.

    Reply
    Please complete the required fields.



  • It’s interesting that all we ever hear about is how those who have got themselves into trouble need help. Where is the voice of those who have been careful and lived within their means and who don’t expect the reckless to receive special treatment. Also, what message does it send to those who do try to keep their finances under control? Don’t bother basically……

    Reply
    Please complete the required fields.



  • japanese uncle says:

    During the housing bubble in Japan (or Tokyo more precisely), not a few of my colleagues with salaries slightly better than national average in those days (7-8 million yen = around 35,000 pounds), were rushing to buy what were described rightly as rabbit hutches by the outspoken western critics, at the price of 50 – 70 million yen. In return for my perfunctory congratulations, those now ‘home owners’ used to say “After all hard working years, I have come to this, lord of my own castle.”. I had to make some effort not to speak out “Quite a castle, isn’t it?” Now British men and women are repeating exactly the same stories. They say “After all hard working months (not years, maybe, since many of them are on 100% mortgages), I managed to have stepped onto the property ladder”, proudly showing the very cheaply built ‘modern flats’ for city dwellers, that are hardly comparable to the traditional British houses, Edwardian or Victorian, in terms of either style or spaciousness (height of ceiling in particular), not knowing the steps of that ladder can easily break, precipitating the person into a living hell, possibly. Meanwhile they will have to sacrifice all the good things in life, including good food (as we have seen in a recent article of the Times, reporting about the sisters determined to live on beans for a while after the purchase of their flat), just to pay back the ridiculous amount of debt for such a monolith of a residence. Pity.

    Reply
    Please complete the required fields.



  • [email protected] I had £1000 for Ronaldo to score a hat trick at odds of 10-1.

    After he scored his second goal in the 13th minute, the bookies contacted me and offered me £10,000 return on my bet.

    I refused the offer, obviously, as I explained to him that I was “in it for the long term” bet until full time.

    I do think I was really unlucky, the trend up until the 13th minute was that Ronaldo scored every 6.5 minutes and I cannot understand how I lost.

    My children are cold and hungry and my wife is upset, but like you I do fully expect to be bailed out by that helpful GB.

    Reply
    Please complete the required fields.



  • nopensionnohouse says:

    Don’t forget the Metro is essentially the same paper as the Daily Mail. It’s purpose it to make you angry!!

    Reply
    Please complete the required fields.



  • nanny state!

    Reply
    Please complete the required fields.



  • It’s all the same as putting a private pension in place. Those that do give up their current spending power just to subsidise those that don’t later in life. So, why bother.

    Reply
    Please complete the required fields.



  • @renting2 – good observation on pensions – to make it worthwhile you either fund pretty much to the maximum or don’t bother at all.

    Reply
    Please complete the required fields.



  • those people in arrears should be split between those with equity and those without. Those with equity should sell, downsize or whatever and live off the profit (until such time as the assets are eroded), those with no equity should have their mortgages converted to rent, or move out. If they have genuine hardship then they may have that rent paid for them (i dont believe in widescale homelessness in this country – for social reasons for one thing). Of course you cant have your rent paid if you have bought a mansion, and that goes into negative equity, so there should be controls.

    Either way they should lose the ownership of the property and be required to pay the negative equity if applicable (potentially as a non interest bearing loan). As a society we must learn the lessons the hard way im afraid. The welfare state is for people with NET genuine or temporary hardship. The equity on a house (or assets in general) should be included in analyising whether or not someone gets state aid. We cannot pay peoples mortgages because they have either recklessly got themselves in the sh1t. This may be unfair to people who have genuinely bought with the idea of somewhere to live at inflated prices, but why should people that havent done that be penalised by having to pay their mortgages?!?

    Reply
    Please complete the required fields.



  • I am sure GB and his party are delighted that all of you are so happy to blame the people and not the government. It was a useful strategy that served Hitler well. Lots of hardworking tax paying people are in difficulty because it costs so much to live here. Childcare can be as much as a motgage, just keeping warm, eating healthily and meeting council tax bills are draining us all. Lack of affordable housing has played right into the banks and developers hands who along with the media have stirred up a nation of greed and obsession about property.It is responsibilty shared and people have been foolish to trust banks and government predictions, but it will be easier for the banks to survive.
    Shame on you who think it is so easy to get insurance to cover the unexpected, many jobs are not accepted and a friend of mine could not get his to pay out as his rare form of stem cell cancer was not covered.
    The country is becoming hostile and selfish – we will all pay the price if we ignore compassion. I rent my home because the cheapest house in my village is £350,000 – it’s not the house you live in – it’s the life you live.

    Reply
    Please complete the required fields.



  • ….But didnt we vote em in ? If we all pay for the mistakes of people doesnt that mean people will never care what decisions they make? Its a combination of compassion and responsibility that is lacking. We SHOULD be compassionate to those truly unfortunate but not to those that have benefitted from increased asset prices at the cost of future generations, and then who want us to bail them out when things go awry. Are we not saying the same thing? In any case people on here ARE blaming the government for taking a loose credit policy and basing the whole economy (including social policies, being unaffordable) on the illusory house price inflation. Its NOT however party political – believe me the tories would have done exactly the same.

    Reply
    Please complete the required fields.



  • @Kirstygee

    I have to agree with you completely there. I wish there was more good karma in the world and I wish I was better able to generate the good karma myself.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>