Landlords Rent Guarantee Insurance | George Osborne Boosts UK Subprime Housing Market Ahead of Election Boom
We will regularly inspect your property, to ensure it is well-maintained and that everything is as it should be, ready for when you do get a tenant again. We will also continue to advertise your property, to show it to prospective tenants and to keep you informed every step of the way. And you can relax knowing that all the while this property is empty, you are still guaranteed rent payments and are still receiving a monthly guaranteed rental income.
George Osborne announced a series of additional measures in along stream of give away’s aimed at inflating the UK housing market the most significant of which is the policy of zero interest rates which artificially depresses UK interest rates as a consequence of inflationary Bank of England QE Money Printing to the tune of more than £500 billion to date.
Today’s UK housing market boosting measures included –Landlords Rent Guarantee Insurance
An emergency £3 billion for infrastructure and house building to kick start growth.
Interest fee home equality loans of upto 20% of a deposit upto £120k to help people buy new build houses which means house hunters only need to find a 5% deposit for a LTV of 75%! i.e. £10,000 up front deposit to buy a £200k new build on an 75% LTV mortgage of 150k (note loan is interest free for 5 years).
The government will make available an £130 billion guarantee for new mortgages for properties upto £600k so that the banks will lend to more risky borrowers, i.e. those without deposits to buy any new or existing build. This effectively means creating new mortgage / property demand of upto 200,000 per year (not clear if this excludes buy to let 2nd homes).
The above measures are clearly aimed at ALL prospective property buyers / voters across the country, including London, therefore this IS a clear cut election bribe i.e. Vote Conservative because we are giving you £120,000 interest free for five years towards buying any house upto £600k!
Other indirect boosts to the economy were also announced such as helping small business with a £2,000 NI Cut, and canceling the 3p fuel duty rise.Landlords Rent Guarantee Insurance
Embryonic Bull Markets of 2012 Morphing into Bull Markets of 2013
Landlords Rent Guarantee Insurance
If you have been reading my articles at the Market Oracle, then you will know that I have been flagging embryonic bull markets for the UK and US for virtually the whole of 2012 that I expect to accelerate into full blown bull markets during 2013.
06 Sep 2012 – Super Mario Draghi Triggers Stocks Stealth Bull Market Rallies to New Bull Market Highs
This years convergence towards housing market bottoms such as the UK and US presenting one of those once in a couple of decades opportunities to climb aboard what still are embryonic bull markets, just as I strongly suggested the birth of a new multi-year stocks stealth bull market in March 2009
Housing Market Trend Trajectory
Whilst I have yet to get around to concluding towards a detailed multi-year trend forecast for UK house prices, see my earlier detailed analysis and concluding trend forecast for the US Housing market as an approximate interim guide for trend trajectory – 12 Jan 2013 – U.S. Housing Real Estate Market House Prices Trend Forecast 2013 to 2016.
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