The incestuous vortex of cross-promotion

OK! TV is the latest addition to the bewildering circle-jerk that is Richard Desmond’s media empire.

"OK! TV kicked off to a triumphant start," said OK! magazine this week in an interview with the OK! TV host Kate Walsh. The Channel 5 show could be glad of one positive review, at least, even if the more cynical among us might suspect that due to printing deadlines it may have been written before the "triumphant start" had even gone to air.

But then this is the bewildering circle-jerk that is Richard Desmond's empire right now. OK! TV, Channel 5's new brightly coloured approximation of a couple of vapid office drones chattering about celebrities over a water cooler, promotes OK! magazine. The Daily Star and Daily Express promote OK! TV and OK! magazine, as well as giving remarkably positive reviews to the likes of the Channel 5 host Vanessa Feltz; OK! magazine has a two-page feature telling you what's coming up this week on Channel 5 . . . and so on, and so on.

"We are beyond excited by the launch of OK! TV," said the magazine's editor in a leader this week. Beyond excited!

The incestuous vortex of cross-promotion gets to the point where if you see something in a Desmond publication that isn't anything to do with another of his assets, you wonder why it's there at all. And which one is meant to be the flagship? Is Channel 5 the jewel in the crown, or is it OK!, or the Daily Express? Or are they all fighting for the title of least mediocre? It's hard to tell.

It was my own fault, really. I'd decided to watch OK! TV while reading a copy of OK! magazine. I think I got overloaded by it all. But one thing I did notice was that I was reading more than I was watching. I ended up being fascinated by Josie Gibson's Big Fat Gypsy Wedding photo shoot, leaving Kate Walsh and Matt Johnson babbling away in the background.

Of course, this being a Desmond publication, the photo shoot is to tell you that Gibson is a reporter on . . . yes, you guessed it, OK! TV. But even as someone who isn't the target audience of the mag, who couldn't really care less about celebrity culture and all the trashy awfulness therein, I found her tales of growing up in a traveller family (hence the giant pink dress and caravan) quite intriguing.

OK! TV, in comparison, is pretty shabby. Gibson is, by a bus ride, the best thing about it, chirping merrily away about celebrity tweets in that delightful Bristolian burr ("Shane Warne, he's a blancmange, in't he?"), but her segment was a rare moment that strayed beyond the otiose. The rest just makes you yearn for the understated subtlety and class of the show's predecessor, Live from Studio Five.

Besides, they're missing a trick. If they called it Daily Star Daily Express Sunday Express New! Magazine Star Magazine Daily Star on Sunday OK! TV, they'd be able to promote even more Northern & Shell goodies at one go. Surely it's only a matter of time.

Patrolling the murkier waters of the mainstream media
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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.