Conservatives Want House Prices To Go Up?!

[the flying pig]

The Tory housing minister says that housing booms are damaging.

An obscure Tory blogger says that they're wonderful.

Which of these two views should we take as a better reflection of 'what the Conservatives want'?

Edited October 26, 2010 by the flying pig

[moonriver]

I should say, there is a news post link to this on the main HPC page. Which was posted at 10:54. am.

[i did'nt spot it until this afternoon]

Well I am glad you have bought this onto the main page.

(even though reading it, has made me so angry).

Exactly how high does he think house prices "need" to go?

For example, he says ",,,Once prices start to rise, over time, competition between lenders for customers will force banks to work with lower deposits."....Has he not thought that if prices carry on rising, how on earth is the average buyer going to be able to afford to pay back these even higher home loans?

[Executive Sadman]

I think the basic premise of his argument is wholly flawed though. That deposits are to blame. If we cast our mind back a couple of years to when deposits were non-existent, house prices and sales volumes were already stalling, because rates went up to the dizzy heights of...5%.

Gordon put us in a position where we were unable to deal with inflation once it rose above 5% without catastrophic effects.

This guys ideas put us in a position where we are unable to deal with inflation above 1% without catastrophic effects.

Its like he read all Gordons ideas, thought, man, this guy is a moron, but i bet i can be EVEN MORE MORONIC.

Im only surprised he isnt an MP yet. He's certainly got the right idea.

[Milton]

The Tory housing minister says that housing booms are damaging.

An obscure Tory blogger says that they're wonderful.

Which of these two views should we take as a better reflection of 'what the Conservatives want'?

Fair Point. But after posting articles like The Internet Could Win the Election. By David T Breaker.

You would think he would be a bit more careful.

It just wound me up. I would like to think we have someone on our side, and would like to be able to work for something I can afford and call mine own, and not spend the rest of my working life in debt slaver.

I'm still picturing Cameron and Clegg pre-election,and waiting for the FAIR society to appear.

Edited October 26, 2010 by Dan1

[WageslaveX14]

for house prices to fall 50% it would need massive contraction/destruction of credit, so there would be the knock on effect of job destruction in theconomy, its impossible to have a housepricecrash of that magnitude without destroying the economy just it it was impossible to have houseprice increases of this maagnitude without creating the associated economic boom

Or it could just involve a massive contraction of credit to the residential property market, which has already occurred. The mortgage lending figures have already collapsed, both in terms of numbers of loans and aggregate amounts lent. Prices are holding out for now at the expense of sales volumes, but this situation may not continue.

Banks need to lend more to productive businesses while keeping residential lending at current depressed levels. There is nothing contradictory in this, and it is the way to rebalance the economy. This would require political interference in the banking sector, but this would be welcome in my view.

[Cinzano Bianco]

That'll be sibley continuing his solo mission to publicise hpc..

Hi sibbers, must be feeling quite tense now things are gathering momentum. A few sleepless nights ahead I reckon..

It's Hamish McTavish - the "HM" gives it away... plus it is exactly the same way he points out that a thread has been linked here on MSE.

[Milton]

It's Hamish McTavish - the "HM" gives it away... plus it is exactly the same way he points out that a thread has been linked here on MSE.

Excellent Sig.

Edited October 26, 2010 by Dan1

[tinbin]

For example, he says ",,,Once prices start to rise, over time, competition between lenders for customers will force banks to work with lower deposits."....Has he not thought that if prices carry on rising, how on earth is the average buyer going to be able to afford to pay back these even higher home loans?

Madness ... why are high prices associated with 'good' and 'lower' prices associated with bad with these morons.

[Frugal Git]

Well I am glad you have bought this onto the main page.

(even though reading it, has made me so angry).

Exactly how high does he think house prices "need" to go?

For example, he says ",,,Once prices start to rise, over time, competition between lenders for customers will force banks to work with lower deposits."....Has he not thought that if prices carry on rising, how on earth is the average buyer going to be able to afford to pay back these even higher home loans?

Check out the last two comments on the blog - they illustrate that point numerically for the tw@t.

(edit - scratch that - they appear to have been deleted - the point was that someone saving for a house is penalised by HPI of say 5%, meaning by the time they have saved 30K, the house will have risen by more than that).

Edited October 26, 2010 by Frugal Git

[Darkman]

Firstly, many of the complaints exist because what is deemed ‘unaffordable’ is often really just ‘unrealistic’ – whether due to location or size – and away from the trendy hot spots there are cheaper properties. You only have to watch Location, Location, Location to be told it’s all about compromise as house hunters seek perfection at a bargain price in a single postal code or handful of streets.

Oh dear.

[Cinzano Bianco]

Excellent Sig.

Cheers - I think I originally found it on Guido's website.

They truly were an absolute shower. Their intentions are debatable I suppose, but everything they touched really did turn to ratshit.

[Charlie Don't Surf]

I put a comment on there calling it fairly un-Consrvative and saying that using houses to manufacture money wasn't really going to encourage productivity and the f**ktards have removed it.

[Milton]

I jumped to a conclusion that it was someone much older, who may dictate Tory policy.

Not someone who looks quite young.

http://conservativehome.blogs.com/platform/images/2007/05/16/david_breaker.jpg

[ I apologise for my over the top insulting comments which I sent to the Tory site. Emotive issue ]

[ I am a big hairy arsed ranter at times. ]

[IP Newcomer]

How many people called recent graduate David T Beaker an MP?

This government aren't going to try and institute a massive correction in house prices and will probably do their best to stop a quick correction if they see it.

However they do seem to be aware that there is going to have to be a readjustment of house prices in relation to wages, although they want to let this happen over years and avoid the pain of mass repossessions and hopeless negative equity.

However they're not crowing about rising house prices as Labour ministers were when asked about the lack of affordable housing. It will be an attempt to let the air out of the tyres rather than slashing it with a knife. Even this is going to meet with opposition from over extended home owners, some of whom will be Tories.

It will be too slow, probably unworkable, but they're the best hope you've got.

[cybernoid]

So some kid Tory is an idiot, so what. Noone reads that crap, anyone with any influence has better things to do.

[non frog]

You sad losers need to get real. Mo one else wants house prices to go down. Tory, Labour, Socialist Workers Party, no-one. The HPC will blow the economy out the water. All the "growth" is the construction sector. House prices in my view will probably fall 50% but none of you will be able to buy as you will be on the dole. Keep supporting the cutter-nutters - they are laughing at you.

[the flying pig]

200 comments for this chump, double his previous 'record' [even in the election build-up].

he'll probably write something else on house prices soon...

[billybong]

..but to regenerate our inner cities we need prices to be rising and the outlook strong.

Well if our inner cities aren't regenerated enough after getting on for 13 years of continually rising prices culminating in a crazy boom then "we" might as well give up.

The bloke wanting house prices up must be a bubble boy.

Eventually even he will lose his dependence on the bubble and be happy about it.

Edited October 26, 2010 by billybong

[MrP]

You have just assumed that anyone who buys a house is only doing it as an investment rather than somewhere to live.

For most people a house is the biggest investment they'll ever make. Most purchasers buy the property to fulfill their accomodation needs but they would be crazy to not look at the financial aspects as well.

Do you really expect them to decide to buy expecting large drops in the short term? Surely that is what this site is all about isn't it?

[lulu]

You sad losers need to get real. Mo one else wants house prices to go down. Tory, Labour, Socialist Workers Party, no-one. The HPC will blow the economy out the water. All the "growth" is the construction sector. House prices in my view will probably fall 50% but none of you will be able to buy as you will be on the dole. Keep supporting the cutter-nutters - they are laughing at you.

If that happens I am buying with cash....

(can't do that quite yet as the inheritance money is still with the solicitor)

[Riedquat]

For most people a house is the biggest investment they'll ever make. Most purchasers buy the property to fulfill their accomodation needs but they would be crazy to not look at the financial aspects as well.

Do you really expect them to decide to buy expecting large drops in the short term? Surely that is what this site is all about isn't it?

They'd be crazy to put themselves in a situation where they could lose large amounts of money and end up in difficulty (not that that's stopped lots), but that's as far as it should go.

[tomandlu]

They'd be crazy to put themselves in a situation where they could lose large amounts of money and end up in difficulty (not that that's stopped lots), but that's as far as it should go.

If gentle falls are taking place, then holding off buying a place to live in THAT YOU CAN AFFORD doesn't make a lot of sense. However, if they're falling off a cliff, then, yes, most would hold off... but isn't that the way a (falling) market generally works? No one likes to try and catch a falling knife, which puts further downward pressure on prices. Eventually, the commodity gets cheap enough that that paradigm no longer holds, and people move back into the market. Then you get a small bounce and a return to the 'correct' price.

Obviously, the best bargains to be had are at the point just before the bounce, but if you hold off for that point (hoping you can spot it), then you are essentially playing chicken with other bargain hunters...

Or have I missed something?

[nixy]

Well I am glad you have bought this onto the main page.

(even though reading it, has made me so angry).

Exactly how high does he think house prices "need" to go?

For example, he says ",,,Once prices start to rise, over time, competition between lenders for customers will force banks to work with lower deposits."....Has he not thought that if prices carry on rising, how on earth is the average buyer going to be able to afford to pay back these even higher home loans?

I think this explains his muddled thinking.

David T Breaker is studying Politics, Philosophy & Economics at the University of Essex

How much has he (and others) paid for his 'education'?

[pete.hpc]

You sad losers need to get real. Mo one else wants house prices to go down. Tory, Labour, Socialist Workers Party, no-one. The HPC will blow the economy out the water. All the "growth" is the construction sector. House prices in my view will probably fall 50% but none of you will be able to buy as you will be on the dole. Keep supporting the cutter-nutters - they are laughing at you.

Someone's angry

[PopGun]

They truly were an absolute shower. Their intentions are debatable I suppose, but everything they touched really did turn to ratshit.

Post of the week!