UKUSA experiences last 13 yrs

1
UK/USA experiences last 13 yrs

• Policy of extension of home ownership
• Achieved by cheap credit plus
• Lowering credit score necessary
• Advent of Sub Prime lending plus
• Turbocharged Securitisation
• Separation of loan originator long term loan /
  note holder

2
Credit Crunch

• Set back aspirations of marginal home owners (for
  our lifetimes)
• A very high cost money trap
• Failure of New Labour / Democrat home ownership
  policy.
• Need to rebalance housing tenures away from home
  ownership
• Renting the way forward

3
Necessities for Home Ownership

• Capital deposit
• Either capital for balance or
• Available credit (mortgage)
• For mortgage, high enough credit score

4
For the Homeless

• Access to capital, presumably shared ownership.
• Access to credit, depends on
• credit history
• stable housing employment history
• dynamic affordability on day 1 and for life of
  loan, real income at least flat
• a willing provider, who?

5
What do the homeless want ?real / needs.

• Home, with security of tenure
• Lowest risk
• Stability, time to get on feet
• Potential later flexibility
• One step at a time!

6
What do homeless want?perceived ?

• Less discrimination
• To be like others
• Access to asset based welfare
• Not to be left out of wealth creation
• But a new risk - reward future
• Kiss principle, keep it simple ------