Lambie Posted January 23, 2011 Share Posted January 23, 2011 (edited) http://www.adamsmith.org/blog/tax-and-economy/british-housing-on-the-right-track/ I was expecting the usual VI nonsense but was pleasantly surprised. Although this think-tank may not have the influence it once had it is still an interesting indicator of Conservative opinion. If only we had a Conservative Government to go along with it.. More good news on the UK housing front this week – mortgage lending in 2010 has fallen by another 5% to £136.3 billion, its lowest level for nine years. Lending is now down by a third since 2007. Along with the British government's scandalous budget deficit, the nation's long-running obsession with housing is the biggest structural change needed for long-term economic growth. For decades, "investing" in houses has trumped "real" investments in productive enterprises. The consequences of this mentality have been disastrous – inadequate pension savings, lagging productivity, increasingly unaffordable accommodation and, ultimately, the financial bust of 2007-2008. If this recent trend in diminished mortgage lending marks a true reversal from the past, it could only be good news for a healthier future – lower real house prices and enhanced investment in productive ventures. Now, any fundamental change in long-standing trends will be painful for some. Many over-extended borrowers won't be cashing in as they had hoped. The "value" supposedly locked away in houses won't buy as comfortable a retirement as planned. But that's the nature of bubbles and housing has been one of the biggest bubbles of all time. Currently, tighter mortgage-lending standards are keeping first time buyers from taking their first step on the dreaded housing ladder. (There's a metaphor that has got to go - ball and chain is more apt.) That's no bad thing. Young people should rejoice at the freedom this brings – freedom to move to where the jobs are, freedom from the associated costs of home ownership, freedom from Saturday trips to IKEA, freedom to lie in on Saturday and Sunday mornings. And, if they just wait a bit, some really nice properties will be coming along soon as the baby boomers start selling to pay for more modest retirement homes and nursing care. Now, there are some serious investments to consider! Edited January 23, 2011 by Lambie Quote Link to comment Share on other sites More sharing options...
mattyfc Posted January 23, 2011 Share Posted January 23, 2011 http://www.adamsmith.org/blog/tax-and-economy/british-housing-on-the-right-track/ I was expecting the usual VI nonsense but was pleasantly surprised. Although this think-tank may not have the influence it once had it is still an interesting indicator of Conservative opinion. If only we had a Conservative Government to go along with it.. [/font][/color] Nice article. Agree on all points especially regarding investment in real productivity and culture change. The housing minister seems in tune with this kind of thinking to be fair. Quote Link to comment Share on other sites More sharing options...
fellow Posted January 23, 2011 Share Posted January 23, 2011 I think a lot of the media are now finally on our side, after years of HPI ramping. It just needs to get through to the sheeple that HPC = good news, and then the government can stop propping up the market, without fear of losing the election.. Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted January 23, 2011 Share Posted January 23, 2011 Excellent, well found!!! Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted January 23, 2011 Share Posted January 23, 2011 Um, wow. Quote Link to comment Share on other sites More sharing options...
Stars Posted January 23, 2011 Share Posted January 23, 2011 (edited) A little contradictory in the last line.. After doing so well to highlight the problems caused by property 'investment', it then goes on (unless i'm misreading) to comfort the young with the notion that they too can be property investors (read as economy destroyers) in the future Adam Smith touched upon the problems with real property, unfortunately many people have since cherry picked out those parts of what he said. Edited January 23, 2011 by Stars Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted January 23, 2011 Share Posted January 23, 2011 Last line probably could have been phrased better..... Apart from that, one of the best articles I've read of late. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted January 23, 2011 Share Posted January 23, 2011 Two years ago, pieces like this were bordering on heresy. Shame it's unlikely to ever reach a wide enough audience. Quote Link to comment Share on other sites More sharing options...
erranta Posted January 23, 2011 Share Posted January 23, 2011 http://www.adamsmith...he-right-track/ I was expecting the usual VI nonsense but was pleasantly surprised. Although this think-tank may not have the influence it once had it is still an interesting indicator of Conservative opinion. If only we had a Conservative Government to go along with it.. [/font][/color] Think-Tank A-DAM With corrupt City, Elites, Banking & Govt everything they stand for is 'null & void'! Quote Link to comment Share on other sites More sharing options...
crash2006 Posted January 23, 2011 Share Posted January 23, 2011 I think a lot of the media are now finally on our side, after years of HPI ramping. It just needs to get through to the sheeple that HPC = good news, and then the government can stop propping up the market, without fear of losing the election.. They have lost it because of their policies, and constant u turns, they dont even talk about housing that much and not once have i heard we are increasing home building or plan to i the future. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 23, 2011 Share Posted January 23, 2011 Most people with common sense know lower house prices will be good for the people the economy and the country...the only little sting in the tail is...we have already had one bailout, we can't afford another...what is required is a little tweaking and adjusting on the finance front, then things can hopefully get back to a balanced normality....not long now. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted January 24, 2011 Share Posted January 24, 2011 Most people with common sense know lower house prices will be good for the people the economy and the country... ...........Really?? Noooooooooo....... Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 24, 2011 Share Posted January 24, 2011 +2. But it will take a radical shift in perception and a necessary change of government. If David Davis could build support on such a model for the economy he may make it to number 10. But how many VI MPs would be willing to stand against the Banksters and their sickofantasies? I have a dream today where all people, rich and poor, will no longer see their homes as investments but a place to live, I have a dream today where the reign of the banksters will come to an end and the people shall breath the air of debt freedom.. I have a dream today................... Quote Link to comment Share on other sites More sharing options...
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