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The Indepedent - The Slippery Slope Of Home Ownership

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From The Independent.

Deborah Orr: The slippery slope of home ownership

House-price inflation. It brings the promise of an easy, unearned income that can be cashed in at some point, whether by sale or by asset conversion, or left as a nest egg for the family. How wealthy it makes homeowners feel. What a boost to the rest of the consumer economy it offers. What boundless opportunities for reckless lending it confers on financial providers. The long property boom began in the months before Blair came to power, and kept many people voting him in, even as he reneged on such promises as a written constitution, proportional representation, a return to local democracy, all those things that it turns out were so desperately wanted all along.
Property inflation is a brilliant way of generating unearned income for those with capital, while excluding and exploiting those who cannot "get on the property ladder". And those who have made unearned income from their homes have been of late vociferous in their demands that they be allowed to keep this money in the family. Their demands were listened to.
House-price inflation, and its lucrative profits, helped enormously in making renting a mug's game, something only a part-time cleaner would have to resort to. (And the poor availability of decent rented properties at rates commensurate with modest earnings was part of this.) MPs were no less attuned to the temper of the times than the rest of the culture. Rent had become money wasted on feathering someone else's asset. Mortgage had become money invested in the present and the future, in a bricks-and-mortar fruit machine that always paid out.
The Governor of the Bank of England, Mervyn King, said years ago that he wished that house prices were included in the Consumer Prices Index, the measure of inflation he was tasked with controlling. This anomaly distorted our economy, our "social inclusion", and even, on the not-so-narrow margins, our morality, as is so clear from the behaviour of some MPs. But what happened to Westminster happened to the whole nation, and one of the most important infrastructural tasks of a sustainable and stable recovery is to make houses back into homes, instead of fruit machines.

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Articles like this make me laugh- where were all these social philosphers when HPI was in full swing? Too busy building their BTL empires to write it all down?

And now they all have this uncanny ability to forsee the past- spoooky! :lol:

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"Gambling promises the poor what property performs for the rich--something for nothing."

- George Bernard Shaw

It all looked so easy... money for nothing.

And chicks for free!

- Dire Straits

Edited by Game_Over

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"Gambling promises the poor what property performs for the rich--something for nothing."

- George Bernard Shaw

It all looked so easy... money for nothing.

The problem is we live in the Casino.

Tony_Blair_visits_gaza_pic_Getty_877785464.jpg

Edited by Tom Peters

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An excellent article - telling it exactly how it is. The UK has relied for too long on unearned income from property inflation. The young, the poor and the prudent have all been fleeced in order to prop up a giant Ponzi scheme encouraged by MPs who played the market with tax payer money.

It could all be stopped so easily - by including housing in the CPI - bot don't hold your breath.

Mr Brown did nothing to prevent the bubble and everything to encoruage it, now that it has burst he is willing to sacrifice the money of future generations in a bid to prop up the over inflated market and keep the very same future generations from ever owning their own home. he should hang his head in shame.

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Articles like this make me laugh- where were all these social philosphers when HPI was in full swing? Too busy building their BTL empires to write it all down?

They were all around. Blogs, pubs, homes, ... some of them on this website.

The last place they were going to get a voice was an ad-revenue-dependent meeja in hock to the EAs. But now some have got a voice there!

I know nothing about this particular author, whether she's a longstanding Cassandra or a Vicar of Bray, or (perhaps more likely) just someone turning to a subject when it's topical.

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I know nothing about this particular author

She’s Will Self’s wife! And they live in Stockwell in south London – not a particularly nice area, although I’m sure they must live on one of the elegant streets tucked away there.

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An excellent article - telling it exactly how it is. The UK has relied for too long on unearned income from property inflation. The young, the poor and the prudent have all been fleeced in order to prop up a giant Ponzi scheme encouraged by MPs who played the market with tax payer money.

It could all be stopped so easily - by including housing in the CPI - bot don't hold your breath.

Mr Brown did nothing to prevent the bubble and everything to encoruage it, now that it has burst he is willing to sacrifice the money of future generations in a bid to prop up the over inflated market and keep the very same future generations from ever owning their own home. he should hang his head in shame.

PRECISELY!

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