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Non-homeowners have no freedom, claims Gummer  

John Gummer, the former Conservative MP for Suffolk Coastal and the chairman of the Association of Mortgage Intermediaries has claimed non-homeowners have no freedom.

Speaking at the AMI annual dinner last night he said home ownership has been one of the main strengths of Britain.

He told the audience: “Home ownership is the basis of freedom, people who do not own their own home do not have independence.”

He went on to say: “AMI is a proper representation of a great profession, which is crucial to the property owning democracy in the UK and as such makes a bigger contribution to freedom than perhaps any other profession.”

Gummer claimed people who dealt with him throughout his time in parliament could be much tougher with him if they owned their own home.

He adds: “Home ownership gives people who otherwise would not have a stake in society a real stake, it is the basis for any democratic system, it’s because people own something that matters that they are able to proceed.”

Communities and Local Government secretary Eric Pickles was also a guest speaker at the dinner, he stressed the need for a balanced approach to regulation.

He told the audience: “I never interfere with matters with the FSA, but I know from personal experience how important your role is as an intermediary in getting the right deal for your client and as we move out of recession we must ensure regulation is proportionate and reasonable and that we don’t build any additional regulation that is not necessary.”

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  • Daniel 17th June 2011 at 8:48 am

    Actually, Richard, it’s more of an initialism than an acronym.

  • Richard Rouse 16th June 2011 at 9:43 am

    To Daniel,

    Please look up the following acronym:

    TL:DR

    Best

    RR

  • Ellen 16th June 2011 at 9:34 am

    Its impossible not to view housing as an asset as it is ‘high value’. For those who sold and are renting, it is probably the easiest way to get their hands on such large amounts of money and gives them the freedom to provide all sorts of things for their family that they wouldn’t do with a mortgage. Renting is fine and you can make the house your own while you live there, especially if you take a relaxed view towards the return of the deposit. I would say, while house prices continue to fall, which could be a decade, renting provides more freedom than owning

  • Nick 15th June 2011 at 8:08 pm

    What an insult. The political system engineers house prices up 300% so we can no longer afford to buy a box that only costs 50 grand to build. It’s his class who created this mess. Talk about taking the p!ss

  • David 15th June 2011 at 5:29 pm

    “Debt Slave | 15 Jun 2011 4:21 pm

    I see what he means. I dont know why the comments above are getting worked up about it. Home ownership has a better feel towards it than renting.

    Believe it or not (above) there are many people making in roads into their mortgage; better then renting hey!”

    Keep on paying that massive debt hanging over your head! I bet it feels great! I can leave this debt-ridden country at any time, but you are a slave to your debt. I like the feeling of renting – I have no maintenance worries, and I can move at any time … better than being a mortgage slave, hey :0)

  • AA 15th June 2011 at 4:21 pm

    I see what he means. I dont know why the comments above are getting worked up about it. Home ownership has a better feel towards it than renting.

    Believe it or not (above) there are many people making in roads into their mortgage; better then renting hey!

  • Daniel 15th June 2011 at 4:16 pm

    NEO CORPORATISM, The banking industry, the housing market or THE PLANNED ECONOMY:

    In the Planned economy. [Housing Market]
    The government controls and dictates production, distribution, prices, etc. They Compel. The Planned economy, is a direct contrast to the democratic model, of the ‘Free Market Economy’

    [The housing ‘market’ is a misnomer, as it is not a ‘market’, by any definitive measure.]

    Neo-corporatism [or New Fascism] is a modern version of state corporatism which emerged in the late 19th century in authoritarian systems and had several manifestations in the first half of the 20th century. In Adolf Hitler’s Germany and Franco’s Spain. Neo-corporatism is the opposing tendency (even polemically) to neo-liberalism.

    Early concepts of corporatism have been traced back to ideas found in Fascist Italy, Nazi Germany.

    The essence of the theory is that major industrial institutions, and
    especially corporations, have now entered into a very close alliance
    with the state, especially with the civil service. Instead of the state
    controlling and organizing industry as though the corporations were
    passive, they are seen as being necessary partners.

    One of the most prominent forms of corporatism is a tripartite system,
    involving negotiations between business, labour, and state interest
    groups to set economic policy. A method preferred by italian fascist
    groups. [and new Labour funnily enough]

    The implication for those who use the idea as a criticism of modern
    political systems is that the spirit of Italian fascism, where industry
    was directly represented in a legislative chamber, is rising again, or has occured, with the state becoming no more than a servant to sectional industrial interests.

    i.e. THE BANKING INDUSTRY

    Quote
    “Fascism should more properly be called corporatism because it is the merger of state and corporate power.” Benito Mussolini

    ———————————————————————-

    It takes a crisis to show that all political philosophies, are reduced to the lowest common denominator.By mutual consent, all Political Parties are corrupt. Because Money corrupts all politicial philosophies.

    This is the best description, of the people in charge of our Country, the Tories/New Labour are both NEO CORPORATISTS.

    ———————————————————————-

    House prices were purposefully manipulated to rise by 300% [via fraudulent, unpunished criminal measures] in a decade.

    3-3.5x times the salary of an individual is the historic measure of affordability, as a proportion of income. [An individual not a couple]

    Without the the money and future forced pledges from those taxpayers who do not own property, and the recapitalisation of certain banks, property prices would have plummeted back to their long term average affordability. As a proportion of income. Which would mean over 50% falls. So by stealing our Taxes, QE, our own banks buying our own gilts, keeping Interest Rates at the lowest they have ever been, etc etc etc
    We are in effect being forced to pay to keep everyone else’s property, or the banks assets, massively overinflated, against all historic measures of affordability.

    Keeping millions who are not on the housing ladder yet, from being able to afford their own property. Working for Nothing. No capital. [Having already been forced to waste tens of thousands in rent, paying off ‘liar loan’ landlords mortgages.]

    The most notable characteristic of a Fascist ideology is the seperation, or persecution of one section of a society at the expense of another.

    ————————————————————————————-

    So why are UK taxpayers who do not own property, having their money STOLEN to recapitalise banks like Lloyds via the bailouts?

    In the USA the banks are withholding houses from the market. Just Sitting on them. Or Drip feeding them into the market. Over here, the same thing is happening.

    Or the banks are placing undisclosed reserves on repossessed properties, ensuring they do not sell at auction.

    While the banks keep hold of properties at reserve prices which nobody will pay, the Banks themselves can keep generating fictitous bonuses on Falsified “profits” instead of writing down losses!!

    Thereby continue paying themselves tens of million’s in Bonuses!!
    Based upon False Accounting. STOLEN from joe taxpayer.

    ITS Fraud and THEFT.

    Plain and Simple. It could not have worked out any better, if they had planned it this way.

    Blatant False accounting and fraud, which is aided and abetted by our corrupt government.

    Who are willing partners.

    Its Price Fixing. And its happening right out in the open. “We are all powerful. The normal rules do not apply to us”, says Merv and the government.

    Bankers are paying themselves bonuses, based upon fake ‘mark to market’ valuations.

    If I speculate on an investment,a share for instance, and it falls, the government will not socialize my losses.
    So why is it ok, to bail out investors who speculate in housing?

    Its not. Its completely corrupt. But that is what has happened.

    And its pushed us into a lifetime of debt slavery. A ‘Debt Transfer’ has occured.

    The UK is run by Economic Fascists.
    ———————————————————————————————————–

  • Austin 15th June 2011 at 12:51 pm

    What a foolish and ill-thoughout comment from a raging VI.

    Talk about vested interest showing through, he should be ashamed of himself.

    How is being tied to a property, potentially in negative equity freedom?

    How is paying upwards of 5 or 6 times your salary to those love banks freedom?

    How is losing your job in one area and not being able to move to a new job in different as you cannot sell your house freedom?

    How is having to have both husband and wife work whilst bringing up kids, just so they can pay banks more for a way over inflated (and now depreciating asset) freedom?

    When will these vested interest fools trying to talk the market up be challenged with these types of comments?!

    What a foolish comment from Gummer.

  • Charles Bunbury 15th June 2011 at 12:30 pm

    Anon,Steve,Richyc & Anonymous number 4. What about an individual freedom to invest their tax pounds in a home of their own? Those who choose not own have to rent or buy tent, one thing for sure, they have absolute freedom to decide without controls.
    Micro management of the mortgage of lending under the guise of consumer protection off the back of macro failure is wrong. It slap in the face of investment freedom worse yet when it leads to a climate that the average first time buyer is now 38 and the rich get richer as more is forced to rent. Where is the freedom in this approach? Richyc you should give the cash away and call it rent, as for selling and 40% rise be happy that you had a property to sell.

  • Tony Ronan 15th June 2011 at 11:35 am

    My wife and I sold our house three years ago go gain the freedom that Gummer thinks we have lost. We have the freedom to move as we wish, we don’t have any debt and our investments have risen over 40%. We just wish we’d done it many years ago. My wives colleagues in Germany all rent, they think the British are crazy for locking up their money in property which never sees true long term gains.

  • Daniel 15th June 2011 at 10:58 am

    “Gummer claimed people who dealt with him throughout his time in parliament could be much tougher with him if they owned their own home.” This is most outrageous of all. But let’s face it, the ideas of ‘democracy’ and ‘freedom’ are illusory anyway.

    He’s just confirming what most people already know – we live in an oligarchy.

  • richyc 15th June 2011 at 10:39 am

    What utter rubbish. We sold our house and moved into rented.

    We found a place in the catchment area of the best school and got our daughter a place ahead of those shackled to a devaluing pile of bricks a huge debt.

    How is anyone with a massive debt like a mortgage anywhere near as free as I am with cash in the bank, no debt and able to actually move whenever I want?

    Best of all is that my cash investments have increased dramatically while houseprices have plunged, want to know what freedom is – it isnt being shackled to a depreciating illiquid asset.

  • richyc 15th June 2011 at 10:38 am

    What utter rubbish. We sold our house and moved into rented.

    We found a place in the catchment area of the best school and got our daughter a place ahead of those shackled to a devaluing pile of bricks a huge debt.

    How is anyone with a massive debt like a mortgage anywhere near as free as I am with cash in the bank, no debt and able to actually move whenever I want?

    Best of all is that my cash investments have increased dramatically while houseprices have plunged, want to know what freedom is – it isnt being shackled to a depreciating illiquid asset.

  • Steve Brown 15th June 2011 at 9:59 am

    I used to have a lot of respect for the AMI they were a good campaigning organisation but idiotic statements like this cannot help them. So a young unemployed homeowner in negative equity has freedom while a young unemployed rented has none? The unemployed rented will get local housing allowance while he or she looks for a job and also can move to a different part of the country to find work much more easily than a homeowner in negative equity.

    I feel sorry for the AMI being saddled with a dinosaur like John Gummer the main memory of whom as a Tory Minister was force feeding his daughter a burger during the BSE crisis.

    http://news.bbc.co.uk/1/hi/uk/369625.stm

  • anon 15th June 2011 at 9:30 am

    What utter rubbish! frighteningly , someone has paid Gumboil to spout this nonsense!
    As for Pickles, if he ditched localism and let developers build- instead of pandering to Nimby voters- there would be more homes and the market would find a proper level- allowing people to start lending knowing there wasn’t another 20-25% to fall.