Posts Tagged ‘Viscount Rothermore’

Vox Political on the Tory MP Who Claims He Cannot Afford a Mortgage

February 14, 2016

Mike over at Vox Political last week post a piece on the sad case of the Tory MP for Stockport, William Wragg. Wragg had appeared in the Guardian complaining that his MP’s salary of £74,000 was too small for him to afford to buy a house, and so he had moved back in with his parents. The Graun was not impressed by this claim, pointing out that in his constituency there were flats available for rent for as little as £110 a week. See http://voxpoliticalonline.com/2016/02/10/tory-mp-forced-back-to-live-with-parents-by-high-house-prices-he-claims/.

Nick, one Mike’s commenters, said

You need a income of £75000 a year to secure a loan of £300’000 so if he avoids London he should be able to manage it

Having said that a bank would not give him a mortgage as his job is classed as insecure as a mp and he would have to provide professional qualifications as a fall back like lawyer etc to secure that type of loan

This is what I believe to be accurate at this time of writing. A genuine loan today is only advanced to those that have on paper a better then average chance of paying the loan back within the 25 year time frame on a scale of 3 times a single salary and 4 times a joint salary plus a 10 percent deposit.

This looks to me like another Tory attempt to ingratiate itself with the very public who’ve been hit hardest by their policies by claiming, ‘Oh, look, it’s affecting us too! We’re all in it together!’

Except we’re not. Young Master Wragg does have enough money to afford a place of his own, depending on where he chooses to live. Very many others aren’t so lucky. Furthermore, any sympathy people may have for him should be weighed against the fact that Wragg is one of those responsible for the mess.

I am very definitely not sneering at people, who go back to live with their parents. It’s happening to a whole generation, both here and in the rest of Europe. In Italy, for example, it’s actually quite common for young people to live with their parents until their mid 30s because of the difficulty in getting suitable housing. Many of the young people, who are forced to move back in with their parents are graduates. Saddled with enormous student debts and faced with a lack of affordable housing, they frequently have no choice but to go back home to Mum and Dad.

Wragg’s whining follows a story a few weeks ago in the Torygraph, about a very middle class couple, who were also complaining that they could not afford houses in London. They got the same amount of sympathy, for pretty much the same reasons. It was the middle classes whining about poverty in the same newspaper, that had showed precious little sympathy when prices started rising and the working poor couldn’t afford roofs over their heads.

And Wragg’s party are the root cause of this. Way back in the 1990s, Maggie Thatcher removed the limits on mortgages. Up till then, banks would only lend a maximum of seven times a person’s income. Older people can remember that the process of getting a mortgage was long, complicated, and featured earnest interrogations with one’s bank manager. This was too much for Maggie, bursting with enthusiasm for Hayekian free trade and monetarism. It was regulation strangling free enterprise. So she got rid of the limits. The result has been that the cost of mortgages has shot up to the point where large numbers of the population cannot afford them.

Other factors contributing to the rise include the growth of the ‘buy to let’ market. Among those boosting this were the usual Tory suspects, the Daily Heil. This has always been fixated on mortgages and the interests of the small investor, and so Viscount Rothermere’s and Paul Dacre’s esteemed organ should share some of the blame for inflated house prices. The situation has also been affected by higher executive salaries vastly surpassing everyone else’s, to the point where they and only they can afford to live in parts of the country like London, and the purchase of properties in the capital by foreigners, especially multimillionaire Chinese, simply as investments without any intention actually to live there.

And so Wragg has found himself slightly affected by the policies his party has inflicted on everyone else. If he had any decency or recognition of the ultimate origins of this crisis, or indeed any genuine sympathy with the other victims, who are in far worse need than him, he would protest against the legislation that has caused this. He would also be opposed to Osbo’s proposed legislation, which will do nothing to increase the amount of available housing, but simply create another housing bubble.

But I doubt that he ever will. Wragg is, after all, a Tory, and a presumably looking to Cameron and Osborne to help his career, a career that could get cut very short if he defies them. And I’ve no doubt that as a member of the middle classes, he fully supports the gentrification programmes that have seen working and lower middle class people evicted from their homes, which have then been pulled down, or converted into luxury flats.

And I also don’t think he’s uttered a peep about the Tory policies that have meant that the number of affordable homes are being cut, and those that remain are, at 80 per cent of the market price, hardly affordable.

But hey, he’s had to move back in with his parents. So he’s just like us. We’re all in it together … except we’re not.

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