Wednesday, 1 August 2018

Here we go again...

We appear to be reaching the mid-cycle dip in the eighteen year credit/land price bubble cycle and land prices seem to have flattened off (at a high level), not just in the UK but globally.

What they plan is not so much pouring fuel on the fire as spraying napalm on smouldering embers to try and get things going again:

1. Young people should get government loans to pay for first house deposit, new report suggests This is tinkering at the edges, all they'd need to do is extend the Help to Buy scheme (or 'Help to Sell', from the point of view of home builders) to 'second hand' homes and abandon the requirement that people wishing to use the scheme have to drum up at least a five per cent deposit.

2. The Halifax is offering to lend customers up to six times their income to help buy a house. Enough said.

3. And to nail things down and enable a lifetime of debt slavery (via Lola)... New mortgage offers financial help for struggling retirees.


Lola said...

In my little world I try, I really try, to explain all this to our clients.

The question is how the bloody hell are we ever going to sort this mess out against the grain of all the vested interests before it goes bang in our faces and 'we' yet again are forced to bail 'them' out?

Mark Wadsworth said...

L, we aren't, it will go *pop* again in 2025-26, we'll bail them out, brief hair shirt period, rinse and repeat.