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" How Osborne's Axe Could Hit House Prices "

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So good to read such phrases from the media amidst the usual 'price falls = bad' mantra...

http://www.moneyweek.com/news-and-charts/economics/spending-review-and-house-pricesmoney-morning-04210.aspx

Some will complain that this puts property even further out of the reach of the poor beleaguered first-time buyer. But I'd argue that it's a sign of how dysfunctional our property market has become that such schemes were seen as a good idea in the first place.
If, as we believe, the real problem was overly easy credit and low Bank of England rates, then the government should have focused on why its macroeconomic policies were making shelter unaffordable for even the relatively well-off among the population.

Instead, they took the easy option of tinkering at the edges. And now the concept of 'shared equity' has become just another hurdle getting in the way of property prices falling back to levels that would allow the market to clear.

The good news is that as pressure mounts for sellers to cut prices, Osborne's cuts might just give the market the nudge it needs to fall back to genuinely affordable levels.

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So good to read such phrases from the media amidst the usual 'price falls = bad' mantra...

http://www.moneyweek.com/news-and-charts/economics/spending-review-and-house-pricesmoney-morning-04210.aspx

Problem is the government want to get re-elected in 4 years time.

That will not happen if 50% of the population is sitting on a loss of several tens of thousands of pounds of house "profit".

tim

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Problem is the government want to get re-elected in 4 years time.

That will not happen if 50% of the population is sitting on a loss of several tens of thousands of pounds of house "profit".

tim

I expect the vast majority will still be sitting on tens of thousands in profit. Only those who bougt in the last 7 years or so will be losing massive amounts.

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Problem is the government want to get re-elected in 4 years time.

That will not happen if 50% of the population is sitting on a loss of several tens of thousands of pounds of house "profit".

tim

Intriguing isnt it?

Are they trying to bring on a crash and get it over with? Or are we going to get massive QE to keep the bubble inflated? :unsure:

Anyhow, they are doing the right thing to bring us back to normality IMO.

Edited by IBlewItLastTime

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I expect the vast majority will still be sitting on tens of thousands in profit. Only those who bougt in the last 7 years or so will be losing massive amounts.

The BoE couldn't care less about any house holder losses. It would wipe them out without even blinking.

What they are worried about is the bankers loan books, worthless security and keys to empty houses being stuffed through the banks letterbox's

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Perhaps they realise that trying to re-inflate the bubble and keep it going until the next election would be nothing short of a miracle, not to mention extremely harmful.

They can't come out and say so openly, but I am sure they favour a slowly deflating market over the next few years... The likelihood, however, is that once the falls get a grip against the backdrop of a double dip economy and there's no fuel left to throw on the fire, we'll get 'Crash II' - the sequel. Bigger and better than before...

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Can one of you please click on moneyweek link and give the comment left

@ 20 The count of nowhere a piece of your mind. f @wit

If that's 'our' CountOfNowhere, I think that's him just having a little joke with sarcasm. ;)

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If that's 'our' CountOfNowhere, I think that's him just having a little joke with sarcasm. ;)

Sorry for that, I here this all the time from a couple of people i know, I hate the ba@tards

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The spending review is nowhere near as bad as expected for the middle classes. No cuts to pensioner giveaways, child benefit hardly touched.

I think many are breathing a sigh of relief and sadly we might see a bounce as a result

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Somebody hasn't been paying attention.

child benefit was tinkered with to manipulate a political storm to provide cover for cuts to other benefits

somebody seems to have fallen for it, though

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child benefit was tinkered with to manipulate a political storm to provide cover for cuts to other benefits

somebody seems to have fallen for it, though

Err, should I assume that somebody has no kids, or zero mathematical ability; and hence hasn't got a clue what the f**k "they" are talking about?!

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Err, should I assume that somebody has no kids, or zero mathematical ability; and hence hasn't got a clue what the f**k "they" are talking about?!

It'll never happen

Why do you think it's not due to come in until 2013?

Unlike changes for poor and disabled which start in a few months

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It'll never happen

Why do you think it's not due to come in until 2013?

Christ on a bike old chap....

Even Sibley wouldn't come up with something that contradictory, in two consecutive lines.

I'm sure you have a point, but please forgive me when I say that, for now, it's utterly opaque.

B

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child benefit was tinkered with to manipulate a political storm to provide cover for cuts to other benefits

somebody seems to have fallen for it, though

If somebody were on between 44 and 60k with 2 kids facing a marginal tax rate of over 50% due to cuts in child tax credits and child benefit, somebody would regard the 'tinkering at the edges' as being worthy of paying attention to.

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Christ on a bike old chap....

Even Sibley wouldn't come up with something that contradictory, in two consecutive lines.

I'm sure you have a point, but please forgive me when I say that, for now, it's utterly opaque.

B

The point is, the child benefit storm was manipulated to give political cover for yesterday's cuts to poor and disabled benefits.

But the child benefit cut is scheduled to happen well into the future giving plenty of time for it to be dropped once it has served its poliical purpose. The reasons for this curious timing has been widely discussed in the media ever since it was announced.

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If somebody were on between 44 and 60k with 2 kids facing a marginal tax rate of over 50% due to cuts in child tax credits and child benefit, somebody would regard the 'tinkering at the edges' as being worthy of paying attention to.

Yes, that is true. Everyone knows it's totally barmy, arbitrary and unfair. Which is why I don't think it will happen. It's cruel though to scare people so much purely for political gain

George Osborne is an even more political Chancellor than Gordon Brown. I used to like him in opposiiton but since coming to power he has revealed his true colours

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If that's 'our' CountOfNowhere, I think that's him just having a little joke with sarcasm.  ;)

If so he's staying in character being sarcastic in post after post   :angry:

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  • 245 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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