Monday, August 20, 2012

Taxpayer takes on more housing risk

Housing industry 'boost' from 95% mortgages plan

Scotland could be about to introduce a scheme to make 95% mortgages available to home buyers in an effort to increase house building. The Scottish government and the construction industry are said to be to be working on the plan.

Posted by ontheotherhand @ 05:30 PM (1909 views)
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8 thoughts on “Taxpayer takes on more housing risk

  • general congreve says:

    They don’t need more housing, there was ghost estates everywhere when I visited last year. What they need is bankers hanging from lamp posts.

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  • Definitely a lot of pressure on housing where I’ve been living GC (Dundee and East Fife), a real pain trying to find somewhere to rent and I’m still hearing anecdotals about a shortage of good 4-bed houses to buy. Even though Dundee has a bit of building going on, they all seem to be getting snapped up, perhaps because it’s been declared an enterprise zone.

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  • No doubt the government will guarantee the mortgages in case of default with taxpayers money. Therefore helping to proper up prices while enabling banks to lend to higher risk individuals – a great plan I’m sure.

    GC – please remember that it takes two to tango. The individual is equally at fault as the banker if he accepts a loan he cannot afford to repay (at historically normal or high interest rates).

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  • mark wadsworth says:

    Oh dear. A while ago, the Scottish government was mulling a system of slapping vacant and derelict buildings with a surcharge and using the proceeds to build more social housing – which sorts out both sides of the equation. If all those vacant and derelicts are brought back into use, then extra tax receipts £zero, but little need for new housing.

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  • They’ll be offering 100% plus mortgages next. And the whole economic crisis will start all over again.

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  • general congreve says:

    @3 – I don’t disagree, but the banks knew what they were doing whereas many who took on loans where just ill-educated thick [email protected] following the crowd. The real culprit is a failure of the monetary and banking system, coupled with a failure of the education system to teach anything useful about the perils of debt to the masses, and then a corrupt ruling class that has bailed themselves out with everyone elses money when the whole game f4cked up. However, I’d still say hang them all, less corrupt scum, less thick people and at least two cheap houses each.

    @4 – Sounds similar to a free market in housing, where broke lenders and borrowers aren’t propped up with other peoples money and the market sets the correct price for a home.

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  • mark wadsworth says:

    @ GC, yup, that’s the general idea.

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  • Scotlands population 2011 5.25m, in 1961 it was 5.2m. Scotlands population density is a fraction of Englands. Why do they need to boost house building? Scotland like Ireland/NI is a textbook example of how money supply drives house prices not supply/demand or demographics.

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