tag:blogger.com,1999:blog-32841798.post3247005707179747519..comments2024-03-18T16:33:31.633+00:00Comments on Capitalists@Work: New build schemeCityUnslickerhttp://www.blogger.com/profile/15929544047783163175noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-32841798.post-20737338361164848322013-03-22T17:34:47.895+00:002013-03-22T17:34:47.895+00:00This move is a sop to the banks and voters by the ...This move is a sop to the banks and voters by the following mechanism:<br /><br />People who currently own property are falling into arrears because they 1. overpaid for their houses and/or 2. withdrew equity to live high on the hog from 1998-2008. Now entering their 50s they find they are utterly f*cked with no jobs, reduced income and no pensions and a huge mortgage still outstanding.<br /><br />What Osbourne is trying to do is allow these people to remortgage their properties and by doing so avail of the 20% 'free money' scam. This will have the immediate effect of reducing their mortgage payments by a commensurate amount BUT it will also relieve the pressure on the banks tattered (and unravelling more by the day) mortgage books.<br /><br />This is a taxpayer funded scam to stave off bankruptcy for the clowns who over-borrowed during the boom. It is can kicking at its best. Unfortunately the young will be left with the bill because the govt are propping up the homeowners who are living in houses they could not, cannot and will never be able to afford. This removal of 'natural wastage' from the system would allow prices to revert to the mean and recycle the housing stock - young with families in larger houses, old ladies with cats in smaller houses.<br />This isnt just a financial f*ck-over, its a societal, economic and generational one too.<br /><br />Incidentally, BQs last reply shows him to be shockingly out of touch with reality. Sad really as I had thought more of him.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-21900421111379264432013-03-22T14:46:56.463+00:002013-03-22T14:46:56.463+00:00"Better to have spent the money on social hou..."Better to have spent the money on social housing to build on brownfiled sites in London with RTB opportunity"<br /><br />Great idea CU. Because that would fit in with the British view of London having been totally invaded by downmarket immigrants with no real worthwhile jobs living off white tax payers in the shires who are the ones really providing the immigrants food and housing.<br /><br />Who knows, you might actually create a situation so obviously unjust that no amount of BBC soothing words will calm matters and civil war will break out.Ryannoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-84629267767266049002013-03-22T10:49:18.394+00:002013-03-22T10:49:18.394+00:00I agree with CU, better to give the cheap loans to...I agree with CU, better to give the cheap loans to housing associations to build good quality cheap housing. If it later gets sold off, meh.Blue Eyesnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-54037797750723015102013-03-21T22:42:02.091+00:002013-03-21T22:42:02.091+00:00I have been busy and missed a great thread - gutti...I have been busy and missed a great thread - gutting.<br /><br />Clearly we need more houses, but we already have cheap mortgages so that was not the problem. Better to have spent the money on social housing to build on brownfiled sites in London with RTB opportunity. <br /><br />CityUnslickerhttps://www.blogger.com/profile/15929544047783163175noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-13357420824963525132013-03-21T21:46:36.319+00:002013-03-21T21:46:36.319+00:00EK -Patrick Allen was the actor. The original and ...EK -Patrick Allen was the actor. The original and the best 'voiceover man'.<br /><br />He was a decent actor, but is only in minor roles. Night of the Generals and he crops up in the Wild Geese.<br /><br />But his voice was everywhere. Blackadder, Roland Rat, Reeves and Mortimer, and of course sampled onto the multi million selling <br />Two Tribes by FGTH.<br /><br />But probably best known as the bloke who looked like he was flying over Barratt houses for no real reason. Probably subliminally to reassure us that they won't blow away from a bit of rotor wash. Bill Quango MPhttps://www.blogger.com/profile/14861116614665461655noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-34766994539610102252013-03-21T21:20:29.523+00:002013-03-21T21:20:29.523+00:00Budgie - I think you're getting confused with ...Budgie - I think you're getting confused with that old Barratt's advert. Electro-Kevinhttps://www.blogger.com/profile/18073103431166273080noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-8292095358370197532013-03-21T20:06:15.214+00:002013-03-21T20:06:15.214+00:00@Budge - good theory! My thoughts while I was watc...@Budge - good theory! My thoughts while I was watching were, if this is an austerity budget, why the generosity in some areas? We are so small a company that the £2000.00 national insurance break has real meaning. How long that holiday will last is what he did not say. <br /><br />The beer thing is populist crap, he obviously does not know the pubs only move prices by 5p up these days nothing even crisps ends in odd pence.<br /><br />The housing mortgage thing is a vote grab, that's why it's not quite ready yet. It also scares me, "sub-prime problem in 5 years then" was the first thought, but helicopter money? maybe that's what all the give-aways are? Timbo614https://www.blogger.com/profile/14671168026195402267noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-43432432338128311302013-03-21T19:47:41.167+00:002013-03-21T19:47:41.167+00:00I don't think this is about housing actually, ...I don't think this is about housing actually, its about helicoptering money onto (some of) the population. Better than giving it to the banks directly, anyway.<br />Budgienoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-49737533229174960002013-03-21T18:26:50.459+00:002013-03-21T18:26:50.459+00:00Multi generational occupancy is the way people liv...Multi generational occupancy is the way people live in failing economies. <br /><br />A good economy begets a good house market. <br /><br />A good house market does not beget a good ecnonmyElectro-Kevinhttps://www.blogger.com/profile/18073103431166273080noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-91118556043625482282013-03-21T18:24:26.005+00:002013-03-21T18:24:26.005+00:00There may not be enough houses (for the way we liv...There may not be enough houses (for the way we live - fragmented and dysfunctionally) but there are enough bedrooms. <br /><br />There are loads of old ladies living on their own in large family houses and there is way too much immigration. <br /><br />This is a clever move on Osborne's part. <br /><br />If it works it works. If it doesn't ...<br /><br />Labour inherit the mother of all hangovers in 2015. <br /><br />No less than the bastards deserve. <br /><br />My point of view is that this house market boost is not the sort of growth we need. A busy economy is not a growing economy - especially if all those new TVs and microwaves come from China. <br /><br />We need an export led recovery and nothing else will do. Electro-Kevinhttps://www.blogger.com/profile/18073103431166273080noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-45386661300794708292013-03-21T17:31:50.199+00:002013-03-21T17:31:50.199+00:00Anon; I'm referring to price. The price of the...Anon; I'm referring to price. The price of the house in the good street by the nice schools on an easy commute with a short drive to John Lewis is..well its in Richmond or Kingston or Hampton Hill. And the house prices there START at £150k for a studio bedsit. A two bed flat in a part social housing, not very desirable, 500 flat block is almost £350k.<br /><br />And that is where the second homes buyer want to move to. And those areas are not getting more common because they are not numerous. <br />Only something like a new tube line/train route - motorway - Free school - shopping centre etc can make a less desirable area more desirable. <br />Eventually it happens organically. Not everyone can fit into Chelsea. Some had to live in downmarket Fulham. And those who couldn't get in there into Hammersmith. And so eventually those areas regenerate prosperously. But it takes a long time.<br /><br />As you say building shops in a field won't make people visit them. {And I have blogged before - i think- about a retail developer who did just that, with predictable results}<br />Enlarging Merthyr Tydfil won't make people live there. <br /><br />So I'm saying that the house price rise continues because the most desirable property prices will continue to rise, as long as someone can afford it.<br /><br />The extreme example,and London has plenty of its own examples, being Monaco where a no bedroom/one reception bedsit type apartment will set you back €1,500,000 or more.<br /><br /><br />Bill Quango MPhttps://www.blogger.com/profile/14861116614665461655noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-33710016003935896132013-03-21T16:50:47.610+00:002013-03-21T16:50:47.610+00:00@BQ - I'm not entirely sure I follow your logi...@BQ - I'm not entirely sure I follow your logic here:<br />"..making housing available doesn't make it desirable.." but it doesnt make it undesirable either. The point was that current policies subsidise the removal of a taxable resource. Its like promoting a life on the dole for people in work. That's be a good election slogan for the Tories - "You'd be better off not working" - they might not be talking it, but they're cetainly walking it.<br /><br />Your other point "There needs to be jobs, schools, transport, shopping to attract people." Well, yes but these things follow development, they dont precede it; thats why its called 'development'.<br />Your logic is circuitous; surely there needs to be people living in an area before schools, jobs and transport arrive? Nobody is going to build a row of shops and a clinic in the middle of a field hoping people will build houses nearby.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-72455602477763255732013-03-21T16:31:49.708+00:002013-03-21T16:31:49.708+00:00I raised this issue yesterday with the question &q...I raised this issue yesterday with the question "How bad are those loans that the Bnaks have."<br /><br />No one seems to think another housing boom is needed. Jan raised the question of the 20% government-back deposit required to be repaid after 5 years - in the situation of negative equity.<br /><br />Stupid idea, stupid policy unless....<br /><br />.. the Banks' balance sheets are significantly worse than anyone thinks.<br /><br />.. or GO is an economic idiot.<br /><br />My money is on significant inflation to ensure negative equity (NE) is minimised - leading to banks reducing their exposure to NE - leading to happy voters - leading to landslide win in 2015. Or so the theory goes.<br /><br />Buy land, buy Euros, buy gold.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-40468059600484119512013-03-21T16:10:37.955+00:002013-03-21T16:10:37.955+00:00Oh, and don't forget you also get free schooli...Oh, and don't forget you also get free schooling. Which is importaqnt. Because now we have 200,000 extra school places to create for the immigrants who came here and then immediately decided to have a baby to ensure their free-house would be delivered promptly.Ryannoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-36966947488581712292013-03-21T16:03:23.642+00:002013-03-21T16:03:23.642+00:00Hmmm, I think this might have an interesting dynam...Hmmm, I think this might have an interesting dynamic and might work out better than you expect. <br /><br />Bascially the buy-to-rent middle-classes are crewing both the government and young people by buying up all the spare housing so nobody else can have it. Then young people find they can't buy a house but life goes on so they either rent direct or get pregnant thus forcing the local council to house them but no council housing so they end up paying for their rent instead. This has created a huge market for people renting against their will that end up having to pay higher rents than if they were buying - which is clearly wrong.<br /><br />What will happen now is that suddenly a lot of young people that couldn't buy will be able to buy and the bottom will fall out of the buy-to-let market thus forcing rents down. This will make buy-to-let less attractive as an investment thus freeing up yet more property for young buyers.<br /><br />Unless... the government continues to stay in the EU and ever more Europeans with no real job realise that they can come to the UK and get a house just by getting up the duff, because under Schengen rules they have absolutely the same rights as British citizens. Noooo, I can't imagine that happening can you? Thos Romanians wouldn't want to do that. I know there are 30,000 that have moved here already because they are "self-employed" (includes pimps and prostitutes) but surely they wouldn't spread the news that out welfare set-up means just anyone can come here and get a house essentially for free?<br /><br />Ryannoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-29696657719338736862013-03-21T16:00:47.462+00:002013-03-21T16:00:47.462+00:00Ideally the government wouldn't introduce sche...Ideally the government wouldn't introduce schemes like this because in the long term they are madness as people have pointed out. The problem is the we have this totally mad boom-bust housing cycle. The boom was insane. The problem is that the busy is similarly insane. Why won't the banks sell mortgages on entirely sensible terms? I think George is right, the mortgage market is broken.<br /><br />BQ is also right (as ever) not many people will take this up because the people who qualify won't need to and the people who need it won't qualify. It will also get delayed into insignificance (note George has today said that his announcement was an announcement of a consultation not an announcement of a package to come into action immediately).<br /><br />I think the primary role of the announcement is, like the Bank of England remit amendment, an attempt to get people to move slowly and steadily towards the exit.Blue Eyesnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-1672791435037879842013-03-21T15:28:33.277+00:002013-03-21T15:28:33.277+00:00Demetrius: I think you're right. i fully expec... Demetrius: I think you're right. i fully expect in the detail people will discover that if they really desperately need the assistance they won't qualify. While those that can manage without will be eligible.<br /><br />Anon: Actually fairly positive responses from what I saw on the tv. Whether that translates into votes?<br /> Most thought it a good ploy. <br />Especially considering the toxicity of the coalition. <br /><br />Even their childcare initiative, that should by any objective measure have been welcomed by at least by women, was slammed by the press. <br /><br />Cautious Clara.I think that's a truth. Pepole will be careful about rushing into debt again.<br /><br />I know that i never ran up the debt that i could have, mostly because I'd been caught out in the 85-93 house price slump. <br />{Didn't stop me buying at probably the absolubte peak of the peak of the market in 2007..Oh well...}Bill Quango MPhttps://www.blogger.com/profile/14861116614665461655noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-22136291283926267302013-03-21T15:16:30.105+00:002013-03-21T15:16:30.105+00:00"The government will lend 20% of the purchase... "The government will lend 20% of the purchase price, on an interest-free basis for five years, to buyers able to find a 5% deposit."I think this is a good idea.It is useful and intersting really in my opinion. agence webhttp://www.salisoft.ma/noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-40622071078645245752013-03-21T15:07:42.338+00:002013-03-21T15:07:42.338+00:00It's a great idea if the following are true .....It's a great idea if the following are true ...<br />Houses are underpriced.<br />Moral hazard doesn't exist.<br />The role of government is to compensate people for bad decisions.<br />Taxpayers should subsidise home-buyers.<br />What we really need at the moment is for more individuals to take on debt.<br />What we really need at the moment is for the government to take on more debt.<br />Subsidising the purchasers of houses won't push up the price of houses. <br />When the government sprays money on rushed, badly thought-out gimmicks it always goes well.<br />House prices can only ever go up. And that's a wonderful thing for everybody. <br />I just saw a hobbit riding a unicorn.Alexnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-83110771421016489392013-03-21T15:05:46.412+00:002013-03-21T15:05:46.412+00:00Good comments as ever.
dearieme: The new immigr...Good comments as ever. <br /><br /> dearieme: The new immigration. May not be that many. But even 30,000 is too many if they all pitch up in two or three cities like the last time.<br /><br />Anon: The housing in the right areas. its not just about how many houses there are. But where they are.<br />There needs to be jobs, schools, transport, shopping to attract people. The areas with the best schools have the highest house prices.<br /><br />And there's neighbours, local amenities, noise, flooding and all the other factors to consider.<br /><br />Your proposals have much merit. But making housing available doesn't make it desirable. Many new buyers would rather have a smaller, modern home/ parking/ manageable decking garden/ low energy cost,windmill on the roof, double glazed starter than a difficult older house/apartment.<br /><br />Clive: Great rantoff. And I know what you mean. Is this the end of sanity.<br />But we know that a boom creates growth. And a housing boom doubly so.<br />At the very least it will give the construction sector a lift.<br /><br />I despaired that the Brown/Darling/ Osborne answer to the bankrupt economy was to get the banks back into the finance game as quickly as possible. Because that was the only solution available in the time available.<br /><br />It would take 20 to thirty years to get our manufacturing base into a semi-German type shape. We need the tax receipts now. So..banking brings in 10% of all revenue..And its made out of nothing much..pump pump pump.<br /><br />BE: Changed games. LAs should be all over you for your accommodation. 2 bed isn't it? And 1st time buyers, such as you did, would jump at it.<br /><br />As for knowing when to take the foot of the inflating bubble pump..No one knows when is the right time. And no government ever does it anyway.<br /><br />Jan: Who gets what , when..don't know. I didn't look. <br />And you're right. Housebuilding shares on a bit of a climb.Bill Quango MPhttps://www.blogger.com/profile/14861116614665461655noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-11176128728153118682013-03-21T14:54:11.859+00:002013-03-21T14:54:11.859+00:00If the current uncertainty in the jobs market rema...If the current uncertainty in the jobs market remains, there may well be a reluctance to jump on board this new bubble. The previous bubble was stoked by folk having reasonable certainty of remaining in work for many years ahead - a situation which may not necessarily be so today, especially if your livelihood is in retail.Cautious Claranoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-47866604151636088492013-03-21T14:47:52.631+00:002013-03-21T14:47:52.631+00:00Suicide for the Tories.
I hope some of them read t...Suicide for the Tories.<br />I hope some of them read this blog or can pass a message to them:<br />"TENANTS DONT VOTE TORY."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32841798.post-64537117454017118852013-03-21T14:28:50.603+00:002013-03-21T14:28:50.603+00:00Botogol: The definition of affordable housing is e...Botogol: The definition of affordable housing is even looser. Its basically housing that is affordable.Bill Quango MPhttps://www.blogger.com/profile/14861116614665461655noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-67698642765714894242013-03-21T14:22:11.110+00:002013-03-21T14:22:11.110+00:00This is the bit where Bialystock and Bloom are in ...This is the bit where Bialystock and Bloom are in prison and the first thing they start doing is offering shares in the production of Prisoners of Love. Woman on a Rafthttps://www.blogger.com/profile/08897415591130901416noreply@blogger.comtag:blogger.com,1999:blog-32841798.post-3315224554123328902013-03-21T14:13:06.206+00:002013-03-21T14:13:06.206+00:00add - if a couple get divorced and have to sell th...add - if a couple get divorced and have to sell the family home -- are either / both / neither of them first tine buyers?Botogolhttps://www.blogger.com/profile/17024057489361848870noreply@blogger.com