Tuesday, 7 May 2013

The Daily Express does satire

From The Daily Express:

Experts predict a 30 per cent rise [in the cost of buying a house] over the next two years as home-hunters take advantage of the Help To Buy scheme. It would send the price of an average home to £300,000 by the end of 2015 – a huge leap from the current figure of £233,000.

The scheme, announced in the March Budget, is designed to help people who ­cannot afford the large down payments ­demanded by commercial lenders to invest in property. Buyers will only need a five per cent deposit.

Industry expert Dominik Lipnicki said the move was “very much good news”. He added: “There is no doubt this will help to push up house prices. There is going to be a rise in house prices anyway but with more people now able to get on to the ladder this is set to rise even further.”

He said the increase will come as a relief to “mortgage prisoners” struggling with negative equity.

“The biggest issue we have is people who may have bought at the height of the market and have seen the value of their ­property decrease,” said Mr Lipnicki, director of financial advisers Your Mortgage Decisions. These ‘mortgage prisoners’ have not been able to re-mortgage their homes, but will be able to now. They can also look at their mortgage options. Any upward move in house prices is definitely good news for many people.”

H/t Khards at HPC.


A K Haart said...

"They can also look at their mortgage options."

Such as emigrating.

Lola said...

"Industry expert Dominic Lipnicki" - My Aunt Fanny! Where do they find these clowns. Twat.

Bob E said...

Do people like Dominic and Nathan Rao - author of the piece - simply not listen to their betters and wisers? As various persons from the Chancellor of the Exchequer downwards to Housing Minister Mark Prisk have all repeatedly said the whole point of these schemes is that they make houses more affordable; so how can that mean house prices go up?

Mark Wadsworth said...

AKH, try to keep up. What they mean is, remortgage the original loan for a lower rate and maybe do a bit of equity withdrawal at the same time to pay for a new car or a holiday. Well deserved, hard working, hard pressed, sensible investment yada yada.

L, it's called rent-a-quote. Nice work if you can get it.

BE, aha, that's the beauty of Home-Owner-Ism, it only looks at one half of the equation at a time.

So higher prices = good news for existing owners; more mortgage finance = good news for first time buyers.

James Higham said...

Go to the hobbits, people, observe their ways and be wise. Better insulated too.

Mark Wadsworth said...

JH, building a house or digging a cave was never a problem, the problem is paying £100,000 for a small patch of bare land on (or under) which to do it.

Bob E said...

I see that over at the Daily Mail they are warning their readership about the "possible hidden pitfalls", including running with this quote :

‘Help to Buy is a reckless scheme that uses public money to incentivise the banks to lend precisely to those individuals who would not and should not be offered credit.

‘Had we been asked to design a policy that would guarantee maximum damage to the UK’s long-term growth prospects and its fragile credit rating, this would be it.’

The report says the Help to Buy scheme could ‘reignite the housing market bubble’. If it burst, plummeting property values would be ‘inevitable’, they warned.'

They do agree on that "£300,000"


Sarton Bander said...


Mark Wadsworth said...

BE, the DM are much less Home-Owner-Ist than they were a couple of years ago. Maybe they read the readers' comments?

SB, yup, I used to dismiss "The Shock Doctrine" as a load of lefty crap, but the powers that be are now doing it (i.e. "not letting a crisis go to waste")to their own populations and electorates and it doesn't seem so funny at all any more.

Sarton Bander said...

They miss the reason WHY the state loves incremental Debt.

It allows them to tax incomes without revealing the harm it does.

Mark Wadsworth said...

SB, I think it's far worse than that, but that's part of it.

Sarton Bander said...

I think that's most of it.

When debt increases GDP does too, regardless of whether it's increasing productivity.