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The Mayor said that the move would be "risky" in the short term as it would damage the confidence needed for economic recovery. And he predicted that asking the middle classes to "wean" themselves off house-price inflation was "unachievable" in the longer term.

In the longer term, yes, but much longer, perhaps twenty years or so ;).

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They are getting scared, real scared.

"He warned the Government that proposals to deliberately "flatten" the market could lead to a sharp spike in prices as the economy improved."

Cue: Hideous genius laugh

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Boris this might come as a shocker to one so intelligent and well educated but you cannot have a functioning economy based soley on ever increasing asset values - its not productive.

Let it go Boris its a ponzi scheme.

Which of our towering universities did this economic primate grace?

I wonder are Boris, his family, friends, associates and patrons all up to their necks in good old real estate?

Boris do you have any vested interest I wonder?

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A chill wind is really starting to blow and reality is begining to dawn for many people, Boris too it would seem. The scale of the UK housing bubble is of such epic proportions that people cannot see a way out without lots of pain for those who will take the brunt of the hit but when the game's up! the game's up! and guess what?.......

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Mr Johnson's warning comes after it emerged that he was living in a rented flat just down the road from his £2.3million north London marital home. Sources close to the Mayor denied he was kicked out by wife Marina Wheeler, a barrister, after claims that he had an affair last year.

Sensible man, Boris!

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asking the middle classes to "wean" themselves off house-price inflation was "unachievable" in the longer term.

What I don't understand about any one who thinks we can continue to see real terms HPI for ever is where they think the money comes from?

HPI so far has been funded by the 'next generation' of house buyers taking on increasingly large loans to purchase an asset off of previous generations. If we continue to see the same behaviour in the housing market until 2030 as we have seen since 1983 then the average house would be worth the equivalent of £210,000 today (based on Halifax figures).

To put this another way, house prices have increased by 7.6%pa since Halifax started publishing figures. If that continued until 2030 then the average house price would be £765,000. By the time I reach 65 (2049) the average house would be worth £3,170,000 (that's 3 million!).

Given that this is based on a period that on average hasn't seen high inflation this is assuming that the value of money decreases but gradually.

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What I don't understand about any one who thinks we can continue to see real terms HPI for ever is where they think the money comes from?

I agree, house prices rose so sharply because of free and easy credit given out buy the banks and other lenders, loans with no proof of income and interest only loans with little or no regulation...look where that led us, almost a total collapse of our financial system that led to a government bailout of some banks that all of us will all be paying for for years to come......do you honestly think they would allow that to happen again so easily?....prices will fall back to normality then recover slowly in line with average wages.

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I thought Boris was alright, but I have lost respect for him over this. It should be clear to anyone that what London needs is lower house prices. We shouldn't have to subsidise people on an average wage to live there. Take the subsidy away, and let's see what happens. I thought Tories believe in free markets? Maybe Boris would be better off swapping sides.

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I thought Boris was alright, but I have lost respect for him over this. It should be clear to anyone that what London needs is lower house prices. We shouldn't have to subsidise people on an average wage to live there. Take the subsidy away, and let's see what happens. I thought Tories believe in free markets? Maybe Boris would be better off swapping sides.

Writ to him.

mayor@london.gov.uk

imagine all the posts on this website were letters to government. We would have got a lot further.

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This is the best bit for me:

"The best way to help those millions in search of an affordable home is not to try vainly to ensure that the present stock of housing becomes more affordable - ie falls in value - but to increase the supply of affordable homes."

Build a load of new houses to sell at low prices but whatever you do, don't do anything that might reduce the value of current houses.

:blink:

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The word wean summed it all up for me. If you have to wean yourself off something then it infers it's a problem.

Wean "Accustom (someone) to managing without something on which they have become dependent or of which they have become excessively fond"

Dependancy and excessive are not good things when you are unable to guarantee their continued existence. Boris pretty much summed up the travesty that has been HPI. Well done Boris.

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This is the best bit for me:

Build a load of new houses to sell at low prices but whatever you do, don't do anything that might reduce the value of current houses.

:blink:

I don't even know how that works. How do they intend to have affordable and unaffordable homes co-existing? Surely the prices will level out, unless they make the affordable houses so $hit that no-one really wants them.

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Boris is being a short-termist b@stard, probably worried with his own re-election.

The good news is that he is confirming what many here suspected, that the coalition gets it, and is going to push HP down. I don't think Boris can stop them.

.

Edited by Tired of Waiting

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Boris this might come as a shocker to one so intelligent and well educated but you cannot have a functioning economy based soley on ever increasing asset values - its not productive.

Let it go Boris its a ponzi scheme.

Which of our towering universities did this economic primate grace?

I wonder are Boris, his family, friends, associates and patrons all up to their necks in good old real estate?

Boris do you have any vested interest I wonder?

And an election in London soon.

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I agree, house prices rose so sharply because of free and easy credit given out buy the banks and other lenders, loans with no proof of income and interest only loans with little or no regulation LIAR LOANS.....

...look where that led us, almost a total collapse of our financial system that led to a government bailout of some banks that all of us will all be paying for for years to come......do you honestly think they would allow that to happen again so easily?....prices will fall back to normality then recover slowly in line with average wages.

:rolleyes:

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Boris this might come as a shocker to one so intelligent and well educated but you cannot have a functioning economy based soley on ever increasing asset values - its not productive.

Let it go Boris its a ponzi scheme.

Which of our towering universities did this economic primate grace?

I wonder are Boris, his family, friends, associates and patrons all up to their necks in good old real estate?

Boris do you have any vested interest I wonder?

As my name implies I come from somewhere where we had a property bubble.

When I look at the UK this is not as clear. If inflation is always (or almost always going up) then you expect asset values to follow sute, just to keep square in real terms. If the asset value gets too far in front of inflation it will be corrected at some stage.

House prices in the UK (Nationwide) are 6% more expensive than they were 5 years ago, 50% higher than 8 years ago and just over 100% above what they were 10 years ago. Is that run away prices? Money should double every 7 to 10 years. Although rules of thumbs are dangerous. Its just compared to NI the an price increases you experienced in the years up to the credit crunch do not scream CRASH. In saying that I cant explain how your prices rebounded so well last year and I expect you to lose those gains again.

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Boris is being a short-termist b@stard, probably worried with his own re-election.

The good news is that he is confirming what many he suspected, that the coalition gets it, and is going to push HP down. I don't think Boris can stop them.

Does he really think showing a desire for HPI will win him MORE votes?

What about all the people priced out or looking to buy a larger house - they all lose out with HPI.

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I don't even know how that works. How do they intend to have affordable and unaffordable homes co-existing? Surely the prices will level out, unless they make the affordable houses so $hit that no-one really wants them.

The key is to place a covenant on the newly built 'affordable' houses which prohibits them from being sold for more than the purchase price for a period of 5 years (or more). There will be no compromise on build standards because of legal requirements.

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As my name implies I come from somewhere where we had a property bubble.

When I look at the UK this is not as clear. If inflation is always (or almost always going up) then you expect asset values to follow sute, just to keep square in real terms. If the asset value gets too far in front of inflation it will be corrected at some stage.

House prices in the UK (Nationwide) are 6% more expensive than they were 5 years ago, 50% higher than 8 years ago and just over 100% above what they were 10 years ago. Is that run away prices? Money should double every 7 to 10 years. Although rules of thumbs are dangerous. Its just compared to NI the an price increases you experienced in the years up to the credit crunch do not scream CRASH. In saying that I cant explain how your prices rebounded so well last year and I expect you to lose those gains again.

...yeah ...lack of wages growth, increased unemployment and removing/ reducuing Gordos props should work towards more nominal reductions.... :rolleyes: ..

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You know what?

Id rather be out in the streets throwing molotov cocktails than working for another ten years for nothing.

Ive had the f@@k enough.

Edited by Dan1

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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