Nanny bans mortgages of more than 3 x income

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So is nanny going to cap the average house price also? An average salary
(£20k?) won't get you much, even with the crunch...
Reply to
Maria
just more 'new' labour economic illiteracy....
people cannot buy an asset for what they believe it is worth to them
of course it will force house prices down, thereby undermining personal wealth...in a sane world 'new' labour would be liable for the losses.... they could always replace the losses with still more tax...
regards
Reply to
abelard
At 18:33:33 on 16/03/2009, count 2 delighted uk.finance by announcing:
Look at the population density.
Reply to
Alex
At 18:04:23 on 16/03/2009, Maria delighted uk.finance by announcing:
And the higher you earn, the higher multiple of salary you can actually afford in any case.
Reply to
Alex
'Maria' wrote this:
Yes, that's going to be a problem. But I guess it would provide Brown with the excuse to reinvent council housing. Just think of it ...all those nice new council estates, with homes allocated to people who are carefully vetted and approved Labour voters!
Reply to
aracari
That's right, after all, we're are the 49th least populated country in the World.
New Labour took one look at the benefits to be had from inward migration and thought, ?We?ll have some of that? whilst at the same time turning the deaf ear towards all the downside.
The choice is simple if you want population to grow to 60 million (though since the economic downturn that may be unlikely indeed people can?t get out fast enough) you have to free up the land and stop pretending we can hold on to Jerusalem.
House prices in the UK always have been just one stroke of a planner?s pen away from a crash but Brown saw to it that even that wasn?t necessary.
Reply to
allandetracy
Two things: the UK has (approx.) 10 times the population density of america, that puts a lot of pressure on land prices. Second, supply and demand. Until the crunch the UK was building around 180,000 new houses each year. However, to meet demand the figure should have been closer to 220,000. The lack of new houses is partly due to lack of land, partly NIMBY-ism, partly restrictive planning such as green-belt policies. The two countries are not comparable.
Reply to
pete
What's wrong with keeping things in check using interest rates, set against price inflation, the way Brown should have been doing all along?
The argument against that is that it may be inappropriate for other sectors of the economy.
Well have two interest rates then or maybe just consider that house prices might be better inside the inflation calculation, pissing out, instead of outside the calculation, pissing in.
In other words, the way they were before Brown had his way but then that would mean accepting some blame, this way it makes it look as if the banks were to blame all along.
Reply to
allandetracy
The population hasn't really grown that much (it's grown about 0.5% pa since 2001), the rise in demand has mostly been fed by idiots buying second homes, and other idiots buying much bigger houses than they really need because they reckoned it was a no-brainer good investment.
Reply to
Andy Pandy
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Don't...I'll throw my dinner. Just imagine how people could be manoeuvred around the country to all those 'underpopulated' areas if more people were dependent on council housing.
Reply to
Maria
Average salary is about 25,000 these days.
You can buy a house for 75,000 in most cities at the moment.
What he's doing is trying to make people save up their deposit.
Reply to
William Black
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Hull maybe. Even here you will be hard pushed to get anything for that and this is a traditionally cheap area. Also it does not take into account the huge number of people who don't earn anything near the average wage (i.e. almost everyone I know). I wonder if they will still take joint incomes? Even modest ex-council houses in my home town (St Albans) will have to be bought by very wealthy people, or the owners simply won't sell if they can't buy another.
He's done that on top of the cap AFAIK.
Reply to
Maria
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Not even Hull - the cheapest property there at the moment is £21K which is 25% shared ownership. And we are talking about the average house, not a cheap Sh*thole the likes of which people like me always end up living in! :)
I wouldn't want a shared ownership house - mainly because the rent portion is always going to increase whether your wages do or not. I guess people will have to get used to shared ownership for a while before people give in and lower prices...
Reply to
Maria
There's even more pressure in countries like Holland and Belgium.
Only because demand was being fuelled by dimwits who thought investing in a second home or in a much bigger house than they needed was a way of making money. Or the increasing numbers who decide to live alone, possibly for the same reason, rather than with friends/relatives.
From 1998-2008 the UK population has grown by only 2.9%, but the number of households has grown by 9.3%
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Well we won't need them now, hopefully. Our housing stock has increased by much more than our population over the last 10-20 years so why should we?
Reply to
Andy Pandy
If the government wasn't so Obamaesquely concerned about the welfare of idiots and institutions who borrowed/lent more than they can afford, they wouldn't be doing this IMHO. It really is pure nannyism. How long before they are telling banks how much they can lend to businesses?
Reply to
Maria
FFS, talk about stable doors and horses! Most lenders are after a 15-25% deposit now, so it's pretty bleeding useless nanny state telling us we must save 5%!
Reply to
Andy Pandy
All speculative bubbles burst. Much to the relief of people who buy tulip bulbs to grow tulips.
Reply to
Shaun
'Maria' wrote this:
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lol. I hope they'll be obliged to use a good state run removal company!
How about "Brown & Co"?
Reply to
aracari

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