Tuesday, February 24, 2009

More housing market props being assembled

MPs call for tough sanctions on repossessing lenders

Lenders that repossess too quickly should face tough sanctions from the government, a government committee has recommended. A report from the Communities and Local Government Committee entitled ‘Housing and the Credit Crunch’ argues that lenders’ attitudes and behaviour towards repossession should be closely monitored by government. MPs are calling for more effective sanctions for lenders that do not comply with repossession guidelines.

Posted by jack c @ 02:10 PM (917 views)
Please complete the required fields.



6 thoughts on “More housing market props being assembled

  • Repossession is a terrible thing – not only does it force hardworking families to rent accommodation, even worse – it depresses the value of MPs’ second homes.

    Reply
    Please complete the required fields.



  • Your home is at risk if you do not keep up with your mortgage payments. Simple enough for some!

    Reply
    Please complete the required fields.



  • Eternal Sceptic says:

    All that these stopgap measures achieve is make the bottom of the trough fadeaway into the future.The steady drip drip of increasingly bad news also destroys confidence.I would argue that letting the market find the lowpoint as soon as possible would be the only way to renew confidence. Encouraging buyers to own instant negative equity is nothing short of crimminal.

    Reply
    Please complete the required fields.



  • They cannot have it both ways, they want the banks to lend, but they do not want them to repossess, if borrowers default. The banks will just have to tighten up lending so that they take no risk, which will reduce the amount of lending. Also what incentive is it for anyone to pay their mortgage if the bank has not sanction against them if they don’t. I think the government should keep its beak out.

    Reply
    Please complete the required fields.



  • Backingermany says:

    …..and all the while: small businesses are forced into bankruptcy by their banks every day. I guess there is a silver lining: at least those entrepreneurs loosing their businesses will not become homeless straight away

    Reply
    Please complete the required fields.



  • UK: Rate-setter makes case for ‘printing money’

    Marcus Leroux
    Times Online
    Tue, 24 Feb 2009 13:36 UTC

    A member of the Bank of England’s monetary policy committee today made the case for quantitative easing, the controversial measure to boost the economy by “printing money” to increase the money supply.

    Andrew Sentance said there was a “strong case” for the use of quantitative easing to avoid “persistent and prolonged deflation”.

    Rate-setters fear that, having cut interest rates to a historic low of 1 per cent, they have exhausted their arsenal to fight off a fall in the general price levels that would send Britain into a spiral of deferred demand and declining output.
    Comment: “quantitative easing” Euphemism for creating money out of thin air. Gotta love it.

    “they have exhausted their arsenal to fight off a fall in the general price levels that would send Britain into a spiral of deferred demand and declining output.”

    Governments are running out of fixes (and starting to admit it.)

    http://www.sott.net/signs/list_by_category/3-Grand-Theft-Economics

    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>