Comments on: Fewer and fewer mortgages http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/ Conservative Party Candidate for Wokingham Sat, 20 Mar 2010 16:56:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Steven_L http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18787 Steven_L Fri, 04 Apr 2008 01:56:38 +0000 http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18787 In my view, the only way to sustain house price inflation far exceeding wages (which most homeowners seemed to want and expect a year or so ago) was shared equity - to keep the supply of first time buyer coming in. Now that the analysts at mortgage providers obviously perceive a risk of house price falls, no lender will want to take the shared equity risk either I expect. Hopefully (in my view) house prices will fall (even if it means a period of recession) and come back to more sensible levels in terms of earnings. The trend over the last few years has been unsustainable unless we want to ultimately hand over ownership of our homes to financial institutions. In my view, the only way to sustain house price inflation far exceeding wages (which most homeowners seemed to want and expect a year or so ago) was shared equity – to keep the supply of first time buyer coming in.

Now that the analysts at mortgage providers obviously perceive a risk of house price falls, no lender will want to take the shared equity risk either I expect.

Hopefully (in my view) house prices will fall (even if it means a period of recession) and come back to more sensible levels in terms of earnings. The trend over the last few years has been unsustainable unless we want to ultimately hand over ownership of our homes to financial institutions.

]]> By: Matthew Reynolds http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18780 Matthew Reynolds Thu, 03 Apr 2008 18:28:33 +0000 http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18780 What is needed is cuts in stamp duty to boost the housing market & raise share prices at a time when falling property prices are hurting the real economy and we need the Square Mile to do well so that a recession can be warded off . The first £500,000 of all property transactions must be 100% stamp duty free while rates are all slashed to 1%. Stamp duty on share should be cut by 0.1% a year for five years until it is axed. The first could be funded by closing a few QUANGO's down & the second could be financed by raising landfil duty & fly tipping fines to boost recycling and help the environment ( the UK is running out of landfil space ). Green growth is needed so that our prosperity does not ruin the lives of future generations and axing a few pointless Labour jobsworths to fund boosting social mobility is hardly a bad idea ! What is needed is cuts in stamp duty to boost the housing market & raise share prices at a time when falling property prices are hurting the real economy and we need the Square Mile to do well so that a recession can be warded off . The first £500,000 of all property transactions must be 100% stamp duty free while rates are all slashed to 1%. Stamp duty on share should be cut by 0.1% a year for five years until it is axed. The first could be funded by closing a few QUANGO’s down & the second could be financed by raising landfil duty & fly tipping fines to boost recycling and help the environment ( the UK is running out of landfil space ). Green growth is needed so that our prosperity does not ruin the lives of future generations and axing a few pointless Labour jobsworths to fund boosting social mobility is hardly a bad idea !

]]> By: tim holden http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18777 tim holden Thu, 03 Apr 2008 12:15:48 +0000 http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18777 Northern Rock, "our" bank, taken into "public ownership", has initiated a different form of instability. The long lines of depositors waiting to extract their savings is replaced by long lines of homeowners waiting to renew their mortgages. Interference with the market has created another mess. Northern Rock, “our” bank, taken into “public ownership”, has initiated a different form of instability. The long lines of depositors waiting to extract their savings is replaced by long lines of homeowners waiting to renew their mortgages. Interference with the market has created another mess.

]]> By: Stuart Fairney http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18776 Stuart Fairney Thu, 03 Apr 2008 12:09:49 +0000 http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18776 I think you maybe confusing the suspension of offers for reasons of logistics, with withdrawl of offers for commercial reasons. I think you maybe confusing the suspension of offers for reasons of logistics, with withdrawl of offers for commercial reasons.

]]> By: haddock http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18773 haddock Thu, 03 Apr 2008 11:35:38 +0000 http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18773 I suspect a lot of our financial woes started when services started to be called 'products'. Much of the mortgage money has been spent, not on housing, but to fund an extravagant lifestyle through re-mortgaging. This works wonders for the nonsensical notion of growth but not for economic stability. Your last piece did not mention immigration and the huge affect this has had on housing supply, surely a very large factor in supply and demand for housing - especially at the lower end of the market. I suspect a lot of our financial woes started when services started to be called ‘products’.
Much of the mortgage money has been spent, not on housing, but to fund an extravagant lifestyle through re-mortgaging. This works wonders for the nonsensical notion of growth but not for economic stability.
Your last piece did not mention immigration and the huge affect this has had on housing supply, surely a very large factor in supply and demand for housing – especially at the lower end of the market.

]]> By: Letters From A Tory http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18768 Letters From A Tory Thu, 03 Apr 2008 09:46:31 +0000 http://www.johnredwoodsdiary.com/2008/04/03/fewer-and-fewer-mortgages/#comment-18768 I think the big question on everyone's minds now is how low can house prices go? There's a part of me which says that demand will eventually steady the ship, but if the downward momentum stays with us then where will it end? http://lettersfromatory.wordpress.com I think the big question on everyone’s minds now is how low can house prices go? There’s a part of me which says that demand will eventually steady the ship, but if the downward momentum stays with us then where will it end?

http://lettersfromatory.wordpress.com

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