You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #20: Bank of England calls for less owner occupation. The Treasury wants more [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Latest Breaking News Donate to DU
xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-23-11 08:34 AM
Response to Reply #13

Britain is on course for a lower level of owner occupation and that would be no bad thing. So said David Miles, one of the nine members of the Bank of England's monetary policy committee in a speech in York today.

This came just 24 hours after the Treasury announced that it would be spending 400m to kickstart private-sector housebuilding and provide a mortgage indemnity scheme so that those buying new-built homes can get a home loan worth 95% of the property's value.

So, we have Threadneedle Street saying that it would be a good idea were housing to play a less prominent part in the economy and we have the Treasury doing its best, within its limited means, to reflate the property market. Clearly, this is one of the occasions when the left hand doesn't know what the right hand is doing.

Miles makes a good argument. He notes that first-time buyers currently have to find a bigger deposit when they are buying a homes, and admits that this causes "transitional problems" particularly for homebuilders. But in the longer term, a smaller owner-occupied sector and a larger private rented sector would increase labour mobility, make the economy more stable and make it easier for the Bank of England to calibrate interest-rate policy.
Printer Friendly | Permalink | Reply | Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC