Friday, September 12, 2008

RICS accuses Govt of ‘tinkering round the edges’ of the housing market crisis

Twisted Logic

The property industry believes Treasury ‘tinkering’ is unlikely to help a market that is on the skids, as the RICS shows. It was a long time coming and hopes were, perhaps, unreasonably high. But as the dust settles on the government’s £1bn rescue plan for the housing market, the industry has been left feeling distinctly underwhelmed.

Posted by peter whelp @ 10:47 AM (678 views)
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5 thoughts on “RICS accuses Govt of ‘tinkering round the edges’ of the housing market crisis

  • In the tradition of “The Tiger That Isn’t”, let’s see how many people that could help:

    £1bn would buy 5,650 ‘average’ houses using Halifax’s latest average of approx £177k.
    Alternatively, say there are 25,000 first time buyers (approx what it was in July 2007); they’d get around £40,000 each.

    Fact is though, that £1bn is a budgetary estimate of what they think it will cost, not a target to reach. I suspect there’ll be such limited take-up that it won’t cost nearly that much.

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  • £1 billion? Pathetic.

    Normant Lamont lost £3.3 bn in a single day trying to prop up sterling and failed.

    If UK house prices are going down 1% a month (and then some!) the total fall in value each and every day is in the order of £1.2 billion. (£180,000 x 1% = £1,800 divided by 30 = £60, 20 million homes x £60 = £1.2 billion)

    So £1 billion might delay the slide by 24 hours, tops.

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  • Of course the government are making minor adjustments (or tinkering). There isn’t a Housing or Mortgage problem according to Gordo.

    Making bold steps or major adjustments will lead to questions like “why has this happened”. Questions NuLab are anxious to avoid.

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  • Im just surprised – no shocked – that anyone could think that they would achieve anything by any raft of measures. For one thing they dont have the spondoolies. As much as i hate to agree with the tories (purely because they would have done exactly the same had they been in power) Ozzy is right – the government have not saved anything in the good times for the bad times. Now you may argue that they have pi55ed it up the wall for the NHS or the Education mantra or even the defence budget (and thats what they should have done), but at the end of the day you can only live on cloud cuckoo land created money for a finite period. That period has ended… naturally and without the need for massive hindsight on anyones part. Its different this time? No mate it never is.

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  • Everyone has tinkered with the former cash cow that was the housing market and RICS are just as guilty as all the other parties.

    Reminds me of that old saying ‘too many chefs spoil the broth’.

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