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eric pebble

Ft Very Clear: House Prices Have To Come Down.

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Give the falling property market a push

By Neil O’Brien

Published: August 3 2010 20:14 | Last updated: August 3 2010 20:14

Last month British house prices fell for the first time since February, prompting gloomy headlines about a possible second recession. The fact that rising house prices are reported as a good news story, however, remains rather curious. We do not celebrate when a loaf of bread goes up in price, or cheer for a hike in the cost of a car. For homeowners, of course, the rising cost of houses is offset by a rise in the value of the asset they hold. Prices also rise during good times, while recessions bring falls. But in reality rising house prices do not cause growth, they help to choke it off.

For any number of reasons, David Cameron should be taking steps to drive down the price of housing. For a cash-strapped government the costs should be obvious. Expensive houses mean bigger wage demands from public sector workers. They have also pushed up the housing benefit bill by £8bn since 1997, while blocking people from leaving social housing, doubling the waiting list and locking many families in dependency. Rising prices have also choked off a right-to-buy programme that used to generate billions in revenues.

http://www.ft.com/cms/s/0/ad4dec10-9f32-11df-8732-00144feabdc0,dwp_uuid=b323d604-11d6-11dd-9b49-0000779fd2ac.html#axzz1CGGMjKvc

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Well if Eric, and the FT say so I guess!

Anyone for tulips? :huh:

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The fact that rising house prices are reported as a good news story, however, remains rather curious. We do not celebrate when a loaf of bread goes up in price, or cheer for a hike in the cost of a car. For homeowners, of course, the rising cost of houses is offset by a rise in the value of the asset they hold. Prices also rise during good times, while recessions bring falls. But in reality rising house prices do not cause growth, they help to choke it off.

Alleluyah.

Another hack that 'gets it'.

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Yeah, the FT might get it, but they're behind a paywall and even if they weren't, Joe sixpack still wouldn't be reading it.

I think virtually all people who can and will read the article already know the obvious about house prices.

Wake me when the Sun/Mirror/Mail/etc. 'get' it. I don't include the Express in that, they don't even have the capacity to 'get it'

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The FT is pretty clear: House prices HAVE TO come down:

(...)

There you are Eric. We were just talking about you in another thread. Take a look at this! http://www.housepricecrash.co.uk/forum/index.php?showtopic=158431&view=findpost&p=2872466 We need your help there. That news is really very very very important! And somehow that thread is not getting the deserving attention. :unsure:

Edited by Tired of Waiting

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  • 284 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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