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Housing Minister Pledges Price Stability

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http://www.guardian.co.uk/society/2011/jan/01/minister-end-housing-price-rollercoaster

I can't work out where Shapps is coming from. Only yesterday he was railing against the FSA plans to tigthen mortgage criteria

In an interview with the Observer, Grant Shapps argues that dramatic increases in the price of property cause "enormous pain" for tens of thousands of young people not yet on the housing ladder. He wants to use government levers to help usher in a new era of "house-price stability" in which prices rise very slowly and below the rate of earnings, making property more affordable long term.

Lord Oakeshott

High prices "transfer wealth from the young to the old and from the have-nots to the haves in society. We must end our unhealthy British obsession with owner occupation for all. We should make long-term renting, both fully commercial and in the social-housing sector, a flexible and accessible option as in Germany and Switzerland. There it is perfectly normal even for a well-off family to rent for many years, rather than buy."

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It's just possible he's coming from the same stream of integrity as MicBroon's “I will not allow house prices to get out of control and put at risk the sustainability of the future”.

Having said that Oakshott's statement seems to reflect the sort of statement heard during Thatcher's era when they SAID they were trying to improve labour force mobility and end the obsession with home ownership.

Edited by billybong

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It's just possible he's coming from the same stream of integrity as MicBroon's “I will not allow house prices to get out of control and put at risk the sustainability of the future”.

What do you mean..... he lied..... :blink: .......... :P

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It's not a bad aim. Equilibrium would actually put HPI somewhat ahead of incomes, as houses are improved, extended and modernised. So what he's looking for is indeed a real reduction, but one that will cause the least pain.

That's what he says. What happens in reality may be another story.

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Having said that Oakshott's statement seems to reflect the sort of statement on mobility etc during Thatcher's era when they SAID they were trying to improve labour force mobility

Is Lord Oakeshott just a peer who Gets It, or does he have any kind of role in Shapps' department? If the latter, he sounds like Good News.

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Shapps gave the example of a "rational" market, where property prices rose by 2%, while earnings increased by 4% – meaning a real-terms drop over time.

[...]

He admitted that the government was not in a position to control the housing market, but he argued there were levers that could help keep prices down, such as the Homes Bonus, to encourage building.

Shapps, good luck with creating that gentle landing that you admit you have no control over. :rolleyes:

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The era of booming house prices, in which people saw property as an investment for retirement, is over, the housing minister declares today.

Ok but does that mean now it's back to saving for a pension in a pension fund or something.

People won't know whether they're coming or going and what happens if another crazed Labour government gets in.

It's the policies of the bedlam.

Edited by billybong

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Did Brown ever actually admit that he thought HPI got out of control under his watch? Perhaps he thought that it was controlled and so his statement has integrity.

Perhaps Shapps is from the same mould as Brown if house prices treble or quadruple in the space of a few years and he will still claim he's ushered in "a new era of "house-price stability" in which prices rise very slowly and below the rate of earnings, making property more affordable long term" - possibly through a similar wholesale manipulation of statistics. It doesn't really matter what he admitted the facts speak for themselves.

Who knows. As the OP said it's difficult to see where Shapps coming from which is a position many people also had to endure for many years during MicBroon's time.

Edited by billybong

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Its a far worse problem than you think Grant.

Its the high house prices that are killing our economy.

High house prices

leads to

Higher cost of living

leads to

pressure on wages to keep up

leads to

less competitive workforce compared to lower cost foreign workers (china etc)

leads to

More jobs being sent overseas

leads to

No wealth creating jobs in the UK, and total economic collapse.

Sorry Mr Shapps, but if you and your boss Dave don't let the housing market crash ASAP, the economy is gonna implode on your watch, taking Sterling and the entire accumulated wealth of Britain in a monumental collapse.

Edited by worst time buyer

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Its a far worse problem than you think Grant.

Its the high house prices that are killing our economy.

High house prices

leads to

Higher cost of living

leads to

pressure on wages to keep up

leads to

less competitive workforce compared to lower cost foreign workers (china etc)

leads to

More jobs being sent overseas

leads to

No wealth creating jobs in the UK, and total economic collapse.

Sorry Mr Shapps, but if you and your boss Dave don't let the housing market crash ASAP, the economy is gonna implode on your watch, taking Sterling and the entire accumulated wealth of Britain in a monumental collapse.

By the time they work that one out it will be too late, if not already.

Watch the outsourcing / offshoring / downsizing next year.

Edited by OnlyMe

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Its a far worse problem than you think Grant.

Its the high house prices that are killing our economy.

High house prices

leads to

Higher cost of living

leads to

pressure on wages to keep up

leads to

less competitive workforce compared to lower cost foreign workers (china etc)

leads to

More jobs being sent overseas

leads to

No wealth creating jobs in the UK, and total economic collapse.

Sorry Mr Shapps, but if you and your boss Dave don't let the housing market crash ASAP, the economy is gonna implode on your watch, taking Sterling and the entire accumulated wealth of Britain in a monumental collapse.

agree with the above. The bigger picture is blindingly obvious to anyone but a banker or politician.

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.... and most home owners too.

True - a lot of home "owners" (in whatever fanciful form that may be) are now not in ownership of a job thanks to the last decade or any sort of long term career or pension. Many have also effectively been partially involved in their own constructive dismissal by joinging the bubble.

The jobs are not coming back, more are going to be lost. Lots of companies will be making long term plans now in the wake of first the fallout and secodnly the reaction to the bubble - stuck with high rents for the foreseeable (both for their staff and themselves) they will look abroad for better value.

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By the time they work that one out it will be too late, if not already.

Watch the outsourcing / offshoring / downsizing next year.

I agree.

I expect the crunch time will come when Spain starts to go. The Euro will fracture and/or take such a massive hit, global bond rates will sky rocket, and then Mr Shapps and Cameron et al will have run out of time. QE won't work then, because it'll only exacerbate the currency risk. The 10 and 30 year treasuries will shoot up, and thus homeowners mortgage rates, and the housing bust, and currency crash will all occur together. V nasty.

My Shapps seems to think a "stable housing market" AT THIS LEVEL is an option. Not a chance. The private sector jobs won't come back until HPs have fallen, and made our workers living costs (wages) competitive with the Chinese.

Shapps was doing well, until he realised the FSA plans to make lending sensible would make his own mortgage unavailable. Instead of thinking, "maybe I made a mistake too" he thought, "well I couldn't be wrong, so the FSA must be going too far!"

Oh dear.... what a mess.

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He is part of the ConLib government, none of them have a clue. They just talk about what they will do then either change their minds, back down under pressure from readers of the Daily Wail or postpone it for a few years.

Remember those wresting bouts of old. The Coalition are like the guy up against Mick McManus... they put up a bit of a fight, say something that seems reasonable then are smashed into the ropes and bounced from one side to the other, soon to succumb to a forearm smash. They might last to the next round but the confidence and any strategy has gone, uttering 'the bad man made me do it!'

Rudderless and totally out of their depth.

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Remember those wresting bouts of old. The Coalition are like the guy up against Mick McManus... they put up a bit of a fight, say something that seems reasonable then are smashed into the ropes and bounced from one side to the other, soon to succumb to a forearm smash. They might last to the next round but the confidence and any strategy has gone, uttering 'the bad man made me do it!'

Rudderless and totally out of their depth.

Think if Shapps actually believes what he says, he will take up a sudden interest in "hill walking."

Supporting high UK house prices is the sole aim of economic policy. They have to be propped up at whatever cost. Everything else, industry, jobs etc can crash and burn.

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And where in all of this (if anywhere) is the support for those things that exacerbated (made?) the HP bubble in the first place (BTL encouragement/tax breaks, deliberately loose rental systems, and all the medjia hype/ramping paid for out of our TV licence funds)?

Schapps going to turn the tap off on the 'get rich quick' (for doing sweet FA) schemes et al?

Aidanapword

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Think if Shapps actually believes what he says, he will take up a sudden interest in "hill walking."

Supporting high UK house prices is the sole aim of economic policy. They have to be propped up at whatever cost. Everything else, industry, jobs etc can crash and burn.

Utter madness, isn't it? Let's cripple the economy and any international competitiveness, but so long as we avoid a housing crash...

That Gordon Brown has a lot to answer for. Cretin.

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And where in all of this (if anywhere) is the support for those things that exacerbated (made?) the HP bubble in the first place (BTL encouragement/tax breaks, deliberately loose rental systems, and all the medjia hype/ramping paid for out of our TV licence funds)?

Schapps going to turn the tap off on the 'get rich quick' (for doing sweet FA) schemes et al?

Aidanapword

HPI makes and breaks all of these.

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Its a far worse problem than you think Grant.

Its the high house prices that are killing our economy.

High house prices

leads to

Higher cost of living

leads to

pressure on wages to keep up

leads to

less competitive workforce compared to lower cost foreign workers (china etc)

leads to

More jobs being sent overseas

leads to

No wealth creating jobs in the UK, and total economic collapse.

Sorry Mr Shapps, but if you and your boss Dave don't let the housing market crash ASAP, the economy is gonna implode on your watch, taking Sterling and the entire accumulated wealth of Britain in a monumental collapse.

Most excellent post WTB

Mods.. It's posts like this that need to be not just visible but 'in your face' on the HPC home page, for the education of visitors to the site. :)

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It's not a bad aim. Equilibrium would actually put HPI somewhat ahead of incomes, as houses are improved, extended and modernised. So what he's looking for is indeed a real reduction, but one that will cause the least pain.

That's what he says. What happens in reality may be another story.

absolutely. like all politicians watch what they actually do, NOT what they say they are going to do.

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That pledge will be broken. Nothing will stop prices falling now. The government is going to bankrupt its citizens completely. 20% VAT and 1.40 a litre for petrol! That's the sign of a desperate economy. It will choke off growth altogether. Who's going to want to buy a home without a job? Politicians need to just tell it like it is: petrol will continue to rise as Sterling gets weaker, nobody will get a mortgage, the number of 18-24 years olds out of work will increase, inflation will rise because Britain imports everything and nobody will want to set up a business because you can't sell goods that easily with 20% VAT. Instability is coming and it will make the late 80s and early 90s look like a picnic.

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  • 312 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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