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Britain's housing inflation threatens the entire economy

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    Britain's housing inflation threatens the entire economy

    Bank of England Governor issues warning over housing inflation - Telegraph

    And I thought housing inflation was keeping the economy going? Well that and immigration....

    #2
    It shows how (wilfully?) blind they are to any problems government policies may spawn until they actually crop up.

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      #3
      Not enough houses or too many people?

      Comment


        #4
        House prices jump £10,000 in five weeks as Bank threatens to cap mortgages - Telegraph

        The price of an average home increased by nearly £10,000 between April and May, the biggest month-on-month cash increase ever recorded.

        I bet it wasn't the biggest ever jump as a percentage. But that would have ruined the headline.

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          #5
          Originally posted by Zero Liability View Post
          It shows how (wilfully?) blind they are to any problems government policies may spawn until they actually crop up.
          Never attribute to malice that which you can attribute to stupidity. I think mostly they genuinely believe it's going to help until it's too late.
          While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'

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            #6
            Originally posted by doodab View Post
            Never attribute to malice that which you can attribute to stupidity. I think mostly they genuinely believe it's going to help until it's too late.
            This.

            When the goverment announced this policy, did anyone on here NOT immediately conclude "That will inflate house prices"?

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              #7
              Things are edging up in most places but not by any amount to raise concern, it encourages a liquid market and people moving means lots of spending on new stuff for the new house which is generally good for the economy.
              Don't be fooled, economy is still on it's arse at the moment and needs all the help it can get.
              London is different, gigantic unstoppable snowball sucking in resources from everywhere else, none of the infrastructure can catch up, takes too long and by the time it's built, demand has shifted up again.
              There will be a ripple effect outwards but the only solution is massive housebuilding and I see some evidence this is starting to happen, looser planning, garden cities etc but I would doubt it can ever rise to the required level in the right areas.

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                #8
                I still remember the interview with one of the minsters responsible for the help to buy scheme and the reporter pointed out exactly that supply-and-demand dilemma... If you artificially increase demand what happens to the price... It goes... Up!

                The minister replied that he expected the building industry to respond to the increase in demand. But why should they, they could just as well do nothing and now sell the same new houses for 10 or 15 percent more than before for the same effort.

                Makes you wonder....

                Matt

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                  #9
                  Originally posted by lukemg View Post
                  There will be a ripple effect outwards but the only solution is massive housebuilding and I see some evidence this is starting to happen, looser planning, garden cities etc but I would doubt it can ever rise to the required level in the right areas.
                  We keep hearing that we need to increase supply, but where are all the people that can't afford to buy living now? There aren't that many homeless people, so the housing shortage overall can't be that huge; it just needs to be redistributed from the landlords to the people that want to buy somewhere to live in.
                  Will work inside IR35. Or for food.

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                    #10
                    Originally posted by VectraMan View Post
                    We keep hearing that we need to increase supply, but where are all the people that can't afford to buy living now? There aren't that many homeless people, so the housing shortage overall can't be that huge; it just needs to be redistributed from the landlords to the people that want to buy somewhere to live in.
                    They are still living with their parents.

                    This has been a rising concern over the past 15 years or so. People wanting to get married cannot afford a home of their own, whether buying or renting.

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