Boris Wants Benefits Claimants To Be Able To Buy Homes

[Hymie]

Do government ministers (and Boris) believe benefit claimants get so much money that they can afford to buy a house, or do they think houses cost of the order of £50k?

I know young people who have fairly well paid jobs, but have no chance of buying a house since mortgage companies will only lend around four times salary – and no house can be brought for less than £200k within a very long commute.

https://www.bbc.co.uk/news/uk-politics-61739816

[youngmafbog]

//The 2008 world financial crash was caused by American banks giving mortgages to people who could not afford to pay them.//

Wow, what a simplistic view of a complex problem.

You really have no idea do you?

[youngmafbog]

//Fair play to the government, if folk can afford eye-watering rent to scumbag landlords they should be able to transfer to a mortgage.//

1. Not all Landlords are scum
2. The Rents are not eye watering if you look at the return on the value of the Property. This will become even more of a problem when house prices rise, which is where most get their 'profit'
3. Mortgage Interest rates are at an all time unsustainable low. When they go up it will make rents look like a walk in the park.
4. You ignore the fact that a Mortgage just covers the Interest (and for a few a small repayment). However maintaining a property properly in order to retain its value is pretty significant.
5. Not for all, for for many dont forget Stamp Duty. Not paid by a tenant.

[Gromit]

Ymb,
// Predatory lending targeting low-income homebuyers, excessive risk-taking by global financial institutions, and the bursting of the United States housing bubble culminated in a "perfect storm." Mortgage-backed securities (MBS) tied to American real estate, as well as a vast web of derivatives linked to those MBS, collapsed in value. Financial institutions worldwide suffered severe damage. //

What do you think caused the world Financial crash in 2008 ?

[Gromit]

Spicerack

// Gromit
//The 2008 world financial crash was caused by American banks giving mortgages to people who could not afford to pay them.//

Racist.//

I assume that was a joke ?

[youngmafbog]

I'm sure we have covered it many times and if you look it up on non left wing sites you will see.

The sub prime market was only a part of it, and if hadnt been mortgages it would have been something else.

[Gromit]

Every site says something similar to
// The 2007-2009 financial crisis began years earlier with cheap credit and lax lending standards that fueled a housing bubble. When the bubble burst, financial institutions were left holding trillions of dollars worth of near-worthless investments in subprime mortgages. //

You seem to have a different answer, which is why I asked you.

[Togo]

What was that site? ^^^

[Togo]

ymb ... This is a very good summation of what conditions and attitudes caused the crash. We know that the sub prime loans were a factor but were only the ready fuel to what was a bonfire of lax regulations and political manipulation that guaranteed it would happen. The longer into the past that it was the more like a deliberate act it seems. This link will require a little though to understand and is not just a glib soundbite, so if you are looking for a quick read it is not for you. Ymb has the background to fully appreciate it and is probably already familiar with it.

https://academic.oup.com/rcfs/article/4/2/155/1555737

[Gromit]

// Developments in the market for subprime mortgages were a prominent example of a trigger of the crisis. In contrast, the vulnerabilities were the structural, and more fundamental, weaknesses in the financial system and in regulation and supervision that served to propagate and amplify the initial shocks. //

That one says the same thing.

[Gromit]

Boris is attempting to repeat this mistake.
Giving mortgages to people who are not working, and who will eventually default.

[Togo]

If you know nothing about a subject it is always best to shut up. The sub prime mortgages were loans given, that were bigger than the value of the property, to people who had the worst of credit ratings. The redistribution of wealth and responsibility to the deserving via the granting of right to own, will be mortgages on properties with a free market value well in excess of the loan, to carefully screened applicants. Stop posting false information.

[Old_Geezer]

It's a Tory government, they probably mean they want to sell council (i.e. public aka our) property off to at a cut price bargain rate in order to buy votes; like before. No point though, everyone must already realise that the opposition party aren't fit to be a democratic government.

[Togo]

Council property is "our" property? Are you avin a larff. Tell me when yo last had any benefit from the council ownership of huge tracts of land and property. Granted they steal you money to aquire them, then manage them in such a way that the only beneficiaries are the councils and their employees themselves. The tenants are treated like a cash cow and have no control over what is done to the properties and are virtually prisoners to the councils because they dare not look to move on or seek employmentout of the area for fear of the "list" and finding themselves homeless. If they own they can indeed sell and move on to new pastures if they want to, instead of being permanently confined to the council human zoo.

[Old_Geezer]

We are the public. It is called public property, bought, as you point out, with our public money.

[Old_Geezer]

As for being cash cows, were that so they'd save money by renting private property; therefore there is only a reason for public accommodation at all because the rent for it is less than market prices. It needs to be as it's justification is to house those unable to afford private rents.

[Togo]

I don't want it! It is of no user to me. I want the council to empty my bins and sort the roads and schools out, not build property empires that are only of benefit to a few "executives" and their contractor mates, and cause misery for millions who are trapped in a rental culture that prevents them looking to advance their families above a subsistence level.

[Hymie]

And Rightmove says first time buyers need a deposit of over £74k – being a benefit claimant looks like the only viable route for young people to become home owners.

https://www.dailymail.co.uk/property/article-10901045/Solo-time-buyers-need-raise-double-deposit-10-years-ago.html

[Deskdiary]

Why was RTB considered a bad thing?

It was great idea.

People in council houses being given the right to buy the house they we’re living in thus allowing them to become property owners.

What’s wrong with that?

My best mate’s mum and dad exercised the right back in the day and it worked out wonderfully for them.

I just can’t see a downside.

[Scarlett]

Boris said it is only for working people who receive housing benefit. I don’t quite understand that, because the amount of housing benefit they receive will be minimal if they are working.

[Hymie]

Are you suggesting Boris is talking out of his ass?