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About Princeofpounds

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  1. If you think about the numbers, it's a nothing story. August was 'the fastest rise in a year'. I.e. since last august. So basically pretty similar to last year. I don't know if august is seasonally a strong month, probably as all the student rentals and graduate places come up for review. I too am sceptical about these rental ramping stories.
  2. Whilst what she said might or might not be perceptive, don't think Horlick is some kind of economic heavyweight. Her expertise is more in self-promotion than anything else.
  3. This is exactly the point. I despise the phrase 'bank of mum and dad', because the truth of the matter is that over the last 15 to 20 years the good British people have been wholesale looting the bank of son and daughter. Either directly through accumulating excessive levels of sovereign debt to minimise their tax burden in working life, or pension schemes where you write a cheque to yourself and leave the bill to the next generation of workers Or indirectly by using interest rate policy to 'rescue' a housing market bubble and force the following generation into bailing them out through extr
  4. http://www.timesonline.co.uk/tol/news/uk/article484468.ece Milibands and tax schemes
  5. One of the easier tax dodges, although I think the tax itself is stupid (not in terms of taking money, in terms of form and structure). If I recall correctly, the Miliband family used something similar to avoid taxes (cgt? Inheritance? Stamp? Can't remember the details but there is a good article about it somewhere) on more modest, but still million pound plus, properties.
  6. As another poster once said (and I paraphrase a long post here): 'The incredible horror of suburban sprawl... or as others might call it, decent homes with a decent amount of space around them'. Planning is clearly too restrictive. It has raised the kind of barriers that can only be got around by the big corporate developers who have the firepower to employ planning consultants and get 'close' to councils. I don't know a single person who has been able, as an individual, to buy a plot of land (which is not an urban brownfield) and build a simple house, without some kind of agricultural or h
  7. Thanks for all the replies. Reading through them it sounds like a lot of people are basically blaming financial incentives but it seems like not many people know much about the real process involved. It's one of things I've found - it's just so opaque and almost secretive. I have a feeling that the system might be more along these lines - soft rather than hard bribes. I.e. 'let's have a discussion about the extension the building zoning in the next masterplan, and maybe we'll think about making you our consultant sometime'. Or consultants in the firms going to the planners and saying 'If yo
  8. Interesting question. I'm tempted to say yes, although I'm not too confident in my answer. Although you can't escape inflation (assuming constant goods amount and monetary velocity) through the identity MV=PQ, in this circumstance you are not looking at a closed economy. M might be increasing but it is being taken away by the country exporting to you (I think that would actually be recorded as a decline in velocity), and they are importing increased ampount of goods for the remaining money to chase. But I don't think it would happen, because really all this situation means is that you are p
  9. I'm not sure that any answer I give you will be much better than simply looking at a few basic references on balance of payments. http://en.wikipedia.org/wiki/Balance_of_payments http://www.khanacademy.org/video/floating-exchange-resolving-trade-imbalance?playlist=Current%20Economics etc. And it's a little hard to know what your question is as it's hard to know what the book has told you and what it has left out. However, simply speaking when you talk about us running 'large deficits' in the west you are, I think, talking about the trade balance or exports minus imports. And that is part
  10. Been reading the thread on land ownership in the uk, and one where Bovis was talking about buying more land in the 'resilient' south east, and it got me thinking... Why is our country so utterly dominated by corporate mass-builders? And why so little self-build? By self-build, I mean the loosest possible definition. I very familiar with France and Belgium, and it seems that in most suburban or semi-rural areas almost all the houses are built by the owner (using architects, builders and project managers perhaps, but owner-initiated). Many of these are even semi off-the-shelf designs, but un
  11. Just one point I want to make here; I actually agree that there are bad examples of management, practice and efficiency in both the public and private sectors. The difference is that the rubbish gets periodically purged in the private sector, either on purpose or simply through businesses failing to compete. Case in point- during the 08/09 credit crunch all sectors of the economy contracted. Except one; the public sector. It's easy enough to see- look at the GDP composition figures. For the state, there was NO recession. All the whining we hear from the public sector now is nothing more th
  12. You do have a point. The problem is that the plan (loose monetary, tight fiscal for 5 years or so) requires such a long period of political will to stare down the public sector, and a dose of luck in that we don't get an external growth shock of large size either. So whilst it has worked surprisingly well so far it's based on future promises we might find it hard to meet. That's why every time I see Balls or Miliband mouthing off I seethe; they helped create the problem and now want to destabilise a solution.
  13. In the short run, credit price and availability are the major determinants of demand. Whilst physical supply and demand are key factors in the long run, the rate of house formation and building is barely perceptible compared to the existing stock over a shorter period like a year. There is probably also an important 'Gifford good' element; people's willingness to buy houses can even increase as they see prices climb.
  14. Also the theory was that LHA tenants would negotiate on rents, motivated by the ability to keep the surplus. This would dampen the effect of LHA providing an artificial floor to the rental market (remember it was set at the average cost for a particular type of property!) Didn't work great, though I sympathise with the idea.
  15. Many universities say they will charge top rates because to do otherwise damages their brand image. I suspect that once they find out that not many people will actually pay the costs to go to 'solihull polytechnic university' et al then we will see much more differentiation in pricing, but perhaps via bursary rebates than a cut in headline fees. Truth is though that for many courses that isn't too far off the actual cost of the course, forget profit. If people aren't willing to pay the real cost then unproductive courses will wilt away, which is probably a good thing. Although I would love e
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