QCFP-Housing Crisis Cannot End with Slow Construction Activity

Posted on May 18, 2012 by tcn

QCFP Questions Why Construction Activity Has Slowed down

QCFP talks about a report which today appears in the BBC and is pointing to the fact that construction activity in the country has slowed down in the first quarter of 2012. The figures given out state that an 11% drop was seen in the industry as compared to the last three months of 2011 while the corresponding figure for the last year is reported at 15%. The government has claimed that it is making all efforts to bring about an improvement to the housing crisis. They have made land available for builders and have even announced the highly publicised new buy scheme in February. In spite of the facilities offered to the construction industry activity has slowed down to a level where the targets set by the government will not be met by the end of the year. Under the circumstances, explanations must be sought from builders as to why they have slowed down their activity.

QCFP Looks at the Demand for Affordable Housing

It was earlier reported that the country would need around 240,000 homes every year until the end of 2016. This figure would take care of the present shortage which is being encountered and does not consider any future increases in population figures. At the moment, the government is promising that they can provide 170,000 homes by the end of the year leaving a shortage of 70,000. In the first quarter of 2012, the construction industry has only started building 24,100 homes, which mean that the figure of 170,000 will not be achieved by the end of 2012. The demand for affordable housing will aggravate in the coming year while the government along with the construction industry will have to make extra efforts to cover up for the deficit.

QCFP Asks the Authorities to Act on Their Proposals

The authorities have for long been putting forward proposals, which have been relegated into the background within a short time. The time has now arrived for the authorities to act on their proposals in order to see an improvement to the shortage of housing in the country. They will have to convince the construction industry to act faster and make all attempts to meet the figures that are required. Merely commenting that they are doing everything possible will not be enough from the authorities in command. It is essential for them to begin looking deeply at the problem in hand and working on a plan which will make affordable housing available to people.

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QCFP Asks Whether House Prices Are Really High As Predicted

Posted on May 15, 2012 by tcn

QCFP Looks at the Considerations Taken When Predicting High House Prices

QCFP looks at a report that appears in the online edition of Nest Finance today and has made a statement that house prices in the country have increased 105 times since 1952. The report has mentioned that house prices, which were £ 1520 in 1952 have today risen to £1 60,000. The difference in prices in the North and South were evident even in those days when people in the country did not have to worry about inflation or other things that are plaguing the population today. The research undertaken by Hamptons International shows that house prices have been increasing steadily over the last 60 years which should send a sense of relief among homeowners in the country. However, the report has not mentioned any reasons for the increase in house prices. The report only looks at prices as they were in 1952, and as they are today. People who had purchased homes in 1952 and looking forward to selling them now would be in for a windfall which they would not have expected at the time of the investment. This would certainly be a dampener for prospective home buyers who would have to shell out a lot more for a home.

QCFP Looks at Why House Prices Have Risen to This Extent

It is extremely easy for a research agency to put out figures showing differences in house prices that existed a few decades ago. However, it would be even better if agencies dealing in such matters gave out the reasons why prices of homes have shown a marked increase over the years. They would have done well to provide figures as to how inflation has pushed up the value of property prices in the country. They should have given details about how the British pound is today worth a lot less than it was in 1952. It is these reasons which have forced house prices up to their current levels.

QCFP Looks at the Reality of the Situation

Citizens of the country in those days did not have worry about the kind of problems that are faced by the people today. The population density of the country was sparse and people could easily find jobs for themselves even at the beginning of their career. They did not have to worry about the idiosyncrasies of the powers in command that are today doing everything possible to make life difficult for the average Briton. The figures quoted in the report will certainly look better for those that are still holding on to properties, they invested money into a few decades ago. However, the population of the country as it stands today will certainly be looking at things differently and hope that they will someday be able to find a property for themselves at affordable prices.

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QCFP-No Letup for Youngsters Looking Forward to Purchasing Homes

Posted on May 10, 2012 by tcn

QCFP Reports High Cost of Living a Deterrent in Making Purchases

QCFP talks about the countless numbers of youngsters that are eagerly looking forward to climbing up the housing ladder. All this while, youngsters had hoped that they would receive some assistance from the new buy scheme, which has been introduced by the authorities. Unfortunately, they have been priced out from this segment of the market by mortgage lenders and are now left at the mercy of buy to let investors. They also face higher costs of living because they are required to pay more towards everyday expenditure. This has in no way dampened the interest that people have in owning a property for themselves. It has only delayed matters to an extent where they will have to wait for a long time before considering a purchase.

QCFP States Costs of Renting Properties Is Also Prohibitive

Buy to let investors have taken the conditions that are facing the country has an opportune moment and has decided to increase asking prices for rental properties. They claim that they are facing higher letting costs, which are forcing their hand. Unfortunately, the situation on the ground is entirely different as it is repeatedly being pointed out that they are only looking forward to taking advantage of the conditions. Rental values are at an all-time high while no changes have been seen in the wages that people draw. Individuals living in rented accommodation are spending an average of 38 to 71% of their income towards rented accommodation depending upon the area where they live. The higher cost of essential commodities is also taking a large percentage of the money they earn leaving them with little to talk about. These individuals are in no position to complain and are merely silent spectators of an ongoing issue.

QCFP Asks How the Situation Can Improve

In the circumstances that are prevailing on prospective home buyers cannot expect any major changes unless the government decides to take drastic action and correct some of the mistakes they committed. They will have to move out, the countless numbers of immigrants who are occupying Council homes at subsidised rates. They will have to take measures, which will help bring down the interest rates that are being demanded by mortgage lenders. It will also be necessary for the authorities in command to think about working to make the new buy scheme a success at all costs. The situation can only improve if the government takes the steps mentioned above. In all other cases, they will be no letup for youngsters that are looking forward to purchasing a home for themselves.

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QCFP-House Prices Break the Dreaded Barrier

Posted on May 7, 2012 by tcn

QCFP Says Prices of Properties Slide below £ 160,000

QCFP looks at property prices around the country and notices a drop of 2.4% for April 2012. People in the country were optimistic about house prices at the end of March when a rise of 2.2% was noticed. The drop in April has certainly dashed the hopes of people sending house prices spiralling downwards below the 160,000 mark. It is being reported that prices of properties dropped by an average of £ 130 a day in April. Presently average house prices are being quoted at £ 159, 883, which is reported to be the same as in 2004. Where does this leave people that were looking forward to making investments in properties, especially with the new buy scheme being available for a low down payment?

QCFP Advises Caution for People Looking Forward to Purchasing Homes

If the trend mentioned above continues for some time property values in the country are likely to be wiped out entirely. The new buy scheme is offering people properties valued in the region of £ 125,000 to £ 250,000 with a down payment of just 5%. Some people have already made purchases and are happy that they have a home for themselves. However, if they were to go through the reports that are appearing now they would feel that they had perhaps made a mistake which should have been avoided. Prices dropping by £ 130 a day are likely to leave them with negative equity in their homes in a short while. Mortgage lenders who had approved their mortgages would not be willing to provide any leeway towards these factors and would do everything possible to ensure that their investment remain safe. People are therefore advised to exercise a degree of caution before thinking about investing in properties.

QCFP Asks Whether the Property Market Will Ever Stabilise

Looking at the margins at which house prices have dropped in April a question must be raised whether there are any chances in the property market to stabilise soon. Analysts for long predicted that prices will continue to fall for the next few years. The stabilisation of the property market can only come into effect if the authorities in command take steps to improve the economic conditions of the country. Until such steps are taken people will continue to face losses from their investments and will perhaps even stay away from purchasing homes. The authorities will have to take some actions before all barriers’ breakdown leading to chaos in the country.

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QCFP Questions the Banks that Are Trying to Make Life Difficult for Mortgage Borrowers

Posted on May 2, 2012 by tcn

QCFP Says Hungry Homeowners Will not Be Able to Repay Mortgages

This property report from QCFP talks about millions of homeowners across the country who are affected by the interest rate hike which has become effective. Mortgage bankers have decided unilaterally to increase interest rates for mortgages and have penalised the very people who were depending upon them for sympathy in times that are extremely difficult. Mortgage repayments have increased from yesterday and are proving to be a burden on the average Briton. It has been reported that three-quarters of all mortgage holders will be affected by the interest rate hike which could make it difficult for them to even have food on their table. People that are unable to have the basic requirement which is essential will not be in a position to make repayments of their mortgages. Mortgage bankers could perhaps have decided to increase interest rates when the economic conditions turned for the better. However, having decided to do so now they have put forward a question which people will find difficult to answer.

QCFP Asks Banks for the Real Reasons behind the Interest Rate Hike

Banks have long sought to give people the belief that interest rates would remain at their current levels and not be increased soon. However, they have now decided to change their position and penalise people and take more in return for the mortgage provided. Authorities at the banks have mentioned that they are facing increased costs of funding mortgages. They have also pointed out at the regulations which have been changed by the FSA. The financial service’s authority has only asked banks to be more responsible in lending and not asked them to increase interest rates. The Bank of England has not made any changes to the base rate which remains at 0.5%. Under the circumstances can banks be believed that they are today facing higher costs towards the funding of a mortgage? Is there an ulterior a motive which banks have that is not being explained to borrowers?

QCFP Points out at the Misdemeanours Conducted by Banks

Over the years banks have been conducting their affairs without responsibility and have incurred losses regularly. They have not cut down on the bonuses paid to the people who acted irresponsibly. They have neither stayed away from requesting taxpayer help when they were found to be lacking in their duties. They have been bailed out by the government using taxpayer money in spite of carrying on with their activities without responsibility. Today the taxpayer is being asked to pay more under the guise of higher funding costs. Mortgage bankers will have to rethink their strategy in quick time failing which they could soon see a revolt from borrowers who would prefer to hand over the keys of their home rather than stay hungry.

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QCFP-Saying good-bye to the New Buy Scheme

Posted on April 27, 2012 by tcn

QCFP Talks about the Changes Proposed by Mortgage Bankers

QCFP looks at an announcement which was made 43 days ago amid a lot of fanfare by the government, house builders and bankers about the introduction of a new buy scheme under which it would have been possible for people to purchase homes with a deposit of just 5%. The announcement was hailed as a breakthrough which would give an impetus for the property market to show an improvement. It was also supposed to the ease the shortage in housing in the country and make properties available for people at affordable prices. The government had confirmed that people would only be required to make arrangements for a 5% deposit before a mortgage for the property would be approved by mortgage bankers. People in the country were perhaps happy that the authorities in command had finally woken up and decided to do something about the crisis in the housing market. However, they had not contented with the sneakiness of mortgage bankers who have now decided to increase interest rates by alarming levels.

QCFP Asks for the Reasons behind the Proposed Increases

The base rate set by the Bank of England has remained stable at 0.5%, and banks are flush with cash from the quantitative easing measures which were undertaken by the government. However, over the past month interest rate increases have been reported regularly. Mortgage bankers have provided a number of reasons for the increase which at the best sound frivolous. Perhaps they would have done well to use the vast amounts which were given to them by the government to make mortgages available at affordable prices to home buyers. Unfortunately, they have decided to make life difficult for the countless numbers that were looking forward to becoming homeowners soon.

QCFP Mentions People Will Be Disappointed by the Changes

Disappointment will be writ large on the face of people who will now have to stay contented with the fact that it will take a long time for them before they can even think about having a home of their own. It is likely that they will blame the government for the hike in interest rates and prepare themselves to say good-bye to the new buy scheme. People had always believed that the scheme had some catches, which had not been explained to them earlier. Now they are witnessing something, which will make them feel that they were not wrong in their assumptions. If the government fails to act against the increases which are being proposed by mortgage bankers they would have succeeded in denting the confidence of prospective home buyers which will take a long time to recover.

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QCFP-Long Haul Ahead before Conditions Improve in the Country.

Posted on April 24, 2012 by tcn

QCFP Says Sluggish Growth Will Keep Recession at Bay

QCFP looks into a report that appears in the Telegraph today and mentions that the country is in for sluggish growth of just over 0.1% until 2016. The report goes on to mention that even if a technical recession is avoided the country could be looking at a growth of 1% per annum until 2016. This is certainly a setback for Chancellor George Osborne, who was looking forward to tackling the country’s debts with higher tax returns. The slower growth that is predicted is going to hit tax revenues, which will make it difficult for the economy to improve. Therefore, it is certain that the people in the country will have to prepare themselves for a long haul which they will not be able to avoid.

QCFP Mentions Unemployment Figures Will Rise

The figures of unemployment in the country are currently at 2.6 7 million and are set to increase over the next two years. An estimate of 3 million has been provided by the Telegraph as the new unemployment figure which will face the country by 2014. This figure is apart from the 1.4 million that are already working on part-time wages. Job security in the construction industry is said to be at its lowest along with retail activity in this segment. The increase in unemployment figures will certainly make more people dependent upon social welfare schemes, which will be another burden that the government will have to handle. At the same time, a drop in construction activity will mean that the housing shortage will not be tackled in a timely manner. This will have a direct effect on all segments of the market that are related to the housing industry and could perhaps hold back any improvement in this segment.

QCFP Asks What the Government Is Going to Do

The authorities have made it clear that they will not be looking forward to increasing the base rates of interest beyond 0.5% and have also indicated that quantitative easing will be put on hold. However, these measures alone will not be enough to bring about a change in the economic conditions and people will still have to face trouble over the next four years. Household finances have already taken a beating over the last three months, and any further difficulties heaped upon people will only make things worse. The government will have to come up with plans to improve the situation and act according to the plans put forward. The time has now arrived for the government to take the first step ahead and bring in the changes required, which will not only improve the economy but will also give an impetus for the improvement of the property markets.

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QCFP-Did People Forget about the Capital When Obtaining Interest-Only Mortgages?

Posted on April 19, 2012 by tcn

QCFP Questions, Whether People Fell for a Ploy to Sell Loans by Overenthusiastic Lenders

This property report from QCFP looks back in time when representatives of lending institutions were overenthusiastic about selling interest-only mortgages. This period relates to the 70s and 80s when such mortgages were extremely popular. Representatives working for leading bankers did everything possible to convince people that they should obtain interest-only mortgages because they would have to make lower repayments every month. Doubtless that the representatives would also have sold them financial instruments which promised high returns to the mortgage borrowers. The borrowers would have been convinced that they had made a good investment into the financial instruments and believed that they would have the money required to repay the entire mortgage at the end of its term. The representatives would have earned a good commission on the instruments sold along with the mortgage. People would not have realised that the economic conditions would turn for the worse and leave them with nothing 20 years down the line. Today we see a large number of homeowners that borrowed interest-only mortgages struggling to make a payment of the capital. The term of their mortgage is nearing its end, and people have no strategy other than the financial instruments for the repayment. The only other choice which is available to people is to try to dispose the property before it is repossessed by lenders.

QCFP Asks Who Is at Fault for the Conditions That Prevail

Representatives working for lenders are known to promise everything on this planet in order to achieve their objective. Looking at mortgages available at low rates of interest with the option of making a repayment of the capital at later date people would have fallen for the ploy which was successfully employed by lending institutions. It would be wrong to blame any single entity for the conditions that are prevailing in the country. Representatives had a right to earn the commission they wanted while people believed that they would get enough returns on the investments they made. It is the failure of the economy that is perhaps the perpetrator of a crime and should be made to take the blame.

QCFP would like the Authorities to Step in and Take Control of the Situation.

Representatives of lenders who earned the commission will not be willing to return it at this point in their lives. People that borrowed interest-only mortgages are in no position to repay the money borrowed and are at risk of losing their homes. The combined effect of these actions will prove to be a disaster for the property market. The authorities will have a step in and take control over the situation without which it is certain that a disaster is in sight.

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QCFP-Have the Authorities Failed to Protect the Interests of the Taxpayer?

Posted on April 16, 2012 by tcn

QCFP Looks at the State of Housing in the Country

QCFP quotes a report which has today been published by the Press Association and provides information about a review prepared by Frank Field, who was looking into the poverty conditions in Britain for Prime Minister David Cameron. The report has pointed out that the average taxpayer in the country does not have access to Council homes, which are being taken over by foreigners. It has for long been mentioned that the people in the country are facing difficulties in getting homes and have to shell out large amounts of money which they can ill afford for rental properties. It is in these circumstances that the report is pointing out facts about foreigners who are arriving in the country and taking advantage of the system. It is clear from the review prepared by Frank Field that the taxpayers in the country are being pushed at the bottom of the line when it comes to subsidised housing being made available to them. This is a dismal condition which should have been avoided by the authorities.

QCFP Demands Priority in Housing for Britons

Large numbers of Britons have been paying their taxes regularly and have followed every rule in the book to ensure that they become the rightful owners of the benefits which are being provided to others. There is no reason for the authorities to provide cheap subsidised housing to foreign immigrants while the taxpayers have to spend more to find accommodation for themselves. Does the country stand to gain in any manner by providing Council houses to foreign immigrants who will be a burden on the economy? A case in point is that of an immigrant living in a mansion in spite of being convicted of making hate speeches in the country. Unfortunately, this gentleman is even paid by the authorities to enjoy a lifestyle which is not available to the taxpayer.

QCFP Asks the Authorities to Wake up

The time has arrived for the authorities to take serious note of the report put forward by Frank Field and make arrangements to ensure that priority is given to Britons when it comes to allocating Council housing. They are the taxpayers who are making every effort to keep the economy afloat and are not looking forward to taking advantage of the conditions. There is no reason why the authorities should ignore the rightful owners of these properties and make them available to those that will be of no benefit to the economy. The authorities will have to wake up and start acting soon failing which they will have to be prepared for trouble.

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QCFP-Housing Affordability Cannot Be solved by Timid Reforms

Posted on April 11, 2012 by tcn

QCFP Wants Government to Do More

This property report from QCFP agrees with the report put out by the Institute of economic affairs, which has mentioned that the timid reforms by the government will not help in easing the problems which people face when purchasing properties. While property prices are said to be at their lowest in the last four years in real terms, the prices are much higher than they were in 1975. The report has pointed out that housing is indeed unaffordable in all regions of the country, and nothing is being done by the government to change this factor. Construction is at a standstill with only 1/5 of the land in the country being utilised for this purpose. The report has claimed planning restrictions for the deficiencies which are being seen in the housing market and has called for more to be done by the authorities.

QCFP Looks at the Recommendations Made by the Institute of Economic Affairs

The Institute has put forward several recommendations which they feel should be implemented if any changes are to be noticed in the chronic shortage of housing in the country. Important among the recommendations are a liberalisation of the planning system in order to address the affordability crisis. The report has also pointed out that the government will have to refrain vested interests from lobbying against planning reforms if they wished to see any improvements in the property market. While pointing out that youngsters in the country are finding it impossible to purchase property’s Prof Philip Booth has mentioned that the crisis faced by youngsters is a subject that can be avoided. The professor has gone on to mention that the government will have to act courageously to bring in the changes that are required and make housing affordable for all.

QCFP Asks Whether Government Will Take the Actions Required.

With reports coming in from quarters who can be called highly credible the onus of bringing in changes now rests with the authorities in command. While they have not hesitated to propose reforms which they say will improve the conditions in the property market will they have the courage to take the system on and bring in reforms, which are stringent? If the government wishes to see an improvement in the crisis that has been plaguing the country for a long time they will have to act immediately. They cannot wish away the crisis which is here to stay but will have to take actions that are necessary to bring in the required changes.

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