Do A Majority Of Brits Prefer High House Prices?

[Trampa501]

Most of us on these boards know how damaging it's been, both to the economic structure of the UK, and (as shown in recent years) to economic stability. But are we in a small minority? I fear we are, and that the majority of the electorate will never learn.

[Peter Hun]

Yes of course they do, and they vote parties in that provide that financial service.

[Milton]

My Parents dont vote Labour because their house increased by 300% from 1997 to 2007.

They listen to me and my brothers, who hate Labour because their house increased by 300%

[NEO72]

Most of us on these boards know how damaging it's been, both to the economic structure of the UK, and (as shown in recent years) to economic stability. But are we in a small minority? I fear we are, and that the majority of the electorate will never learn.

IIRC from various surveys I've come across in teh past few years, around a third want hpi, a third want no change and a third want lower prices.

[silver surfer]

About two thirds of British households are owner occupiers. I can't believe that very many of them have the insight to grasp that high house prices aren't such a great idea.

So in answer to your question, yes a clear majority of the population want high and rising house prices.

[_w_]

Most of us on these boards know how damaging it's been, both to the economic structure of the UK, and (as shown in recent years) to economic stability. But are we in a small minority? I fear we are, and that the majority of the electorate will never learn.

IMO a minority of informed people liked the concept of the 'housing ladder' aka getting houses for free. Obviously that scam only works with rising prices.

A pyramid system such as the 'property ladder' can only profit a minority at the expense of the majority. I think once the majority catches on to it and tries to play the game the end is inevitable.

[zilly]

Most of us on these boards know how damaging it's been, both to the economic structure of the UK, and (as shown in recent years) to economic stability. But are we in a small minority? I fear we are, and that the majority of the electorate will never learn.

Sad to say but yes - I would suggest that even the majority of young people who are 'aspiring' FTBs think this way because:

i) they are utterly brainwashed by the mantra that debt is wealth - our core belief in the UK and central to our way of 'living'

ii) they believe property doubles in price every ten years and will do so from even these elevated levels

iii) an expensive piece of real estate gives one collateral to borrow even more money to buy things one can't really afford - a good thing (see i))

iv) the more one is in mortgage debt in the UK, the more 'respectable' (and indeed - sensible) one seems to be viewed as being (again a tragic consequence of brainwashing).

Spending other people's money without any real thought as to how it is to be repaid has been a sad feature of UK for many, many years. People up to their early twenties really have experienced no other way of living. Being massively in debt is quite normal - this has been enabled by usurious lending and artificially low IRs.

The mentality of not regarding massively overstretching oneself financially as a problem is not going to change quickly amongst a generation who have seen this all around them in their formative years.

One of the 'gifts' debt-fuelled consumerism has bestowed upon us is unfortunately the departure of rational thought.

[Pezerinno]

I think they do after all how will they fill the gap left by mewing? I think quite a lot of households over the past decade have mewed out an extra 10k a year to fill the gap between their incomes and desire. Will they want to turn that tap off? I don't think they associate high house prices with high prices across the board and a poor economy.

[Milton]

To keep house prices at their present overinflated levels, required government sponsored THEFT, from those who do not own property.

Economic Fascism.

[ingermany]

Undoubtedly yes.

The interesting question is how far would they would be willing to go to maintain those prices and what collateral damage they would deem acceptable. Would they sacrifice health,education and personal security for instance? Would they allow food and fuel prices to spiral in order to maintain nominal house prices? I suspect that for many high house prices come right at the top of the policy priority list, and they would allow a frightening national degeneration to occur if that was needed. It seems to me this is quite unique to UK. Even in Ireland and the US I get the impression (may be wrong) that public opinion and policy is directed to maintaining national integrity and recovery, not merely to artificially re-inflating property values. We seem to have subordinated everything to this one goal.

You might get kicked to death by yobs outside your house, but at least it's your house and is worth £1/4 million, so the world is still OK. This is the underlying psychology. This is why every murder and suicide story covered in the press contains info on the value of the victim's home.

[Milton]

How many Brit Homeowners have children who are taxpayers/renters? I would think that demographic, would not mind a drop in house prices.

I also suspect that less than 10% of the owner occupiers in this country would be facing negative equity, if a 50% housing crash occured.

Over half of UK homeowners, own outright.

The majority of owner occupiers would still be in 'profit' even after a 50% crash.

When you examine the statistics, you begin to realise that the people with the most to lose are the Banks and BTL.

Thanks Labour......

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I 'speculated' on some media shares lately, which promptly dropped by 20%.

If I vote Labour, in 2015, will you socialise my losses as well?

No?

Then why do it with housing?

Ideologically twisted, socially damaging, morally repugnant, Economic Fascism.

Edited April 26, 2011 by Dan1

[Cinzano Bianco]

Most of us on these boards know how damaging it's been, both to the economic structure of the UK, and (as shown in recent years) to economic stability. But are we in a small minority? I fear we are, and that the majority of the electorate will never learn.

If I "invest" in something, and it increases in value, I would be happy. On this board, as you rightly point out, we generally appreciate the damage it has done, but we are a minority.

So who's responsibility is it to understand the economics of it? There is an amount of personal responsibility to educate yourself, but in real life that isn't going to happen (see my first sentence). The issue is the sheer propaganda of the last decade, and MPs in the "property game" with significant vested interests toward people getting into more debt. IMO it should be explained to the electorate, by a responsible government that *should* understand economy, and are charged with trying to maintain the UKs economic health.

It is a leadership failure, and the blame lies not only with the last government, but also the Tories who were about as useful in opposition as a chocolate teapot.

Nick Clegg (I am not a Lib Dem voter, they are all equally worthless), though a token effort and all too late, has taken a small step toward this by handing back the "profits" of the sale of his taxpayer funded second home to the treasury... what happens to that money afterwards I don't know.

[hedgefunded]

The vast majority of people they simply cannot see past the idea that their house makes them money, and that ever increasing property prices is therefore a good thing.

I doubt that view, even if we 'suffer' the mother of all crashes will ever change.

[wjk]

Most of us on these boards know how damaging it's been, both to the economic structure of the UK, and (as shown in recent years) to economic stability. But are we in a small minority? I fear we are, and that the majority of the electorate will never learn.

Many want it thinking they're getting ahead without realizing they're rats on a sinking ship merely standing on the heads of others (emotional buyers willing to pay insane prices). It's like free trade and people thinking it's OK if their neighbour loses his job so they can get cheaper Chineese/Indian junk without realizing it takes them one step closer to losing their own job while also holding down their wages. If you're getting ahead at your brother's expense it's likely not a good thing.

[exiges]

Ask yourself this, how many TV shows are dedicated to the affordability of house prices, and how many herald climbing prices ?

None and lots is your answer.

[thecrashingisles]

-

Edited April 26, 2011 by thecrashingisles

[cool_hand]

It's FREE money init.

[Riedquat]

Most people are short-sighted, thick, and greedy. They expect everything without anything giving, and get angry when that doesn't happen. Of the intelligent ones most of them are also short-sighted and greedy, and of the ones who aren't short-sighted most of them are greedy. So it'll remain a mess for as long as there are people to make a mess of it.

[ken_ichikawa]

Undoubtedly yes.

The interesting question is how far would they would be willing to go to maintain those prices and what collateral damage they would deem acceptable. Would they sacrifice health,education and personal security for instance? Would they allow food and fuel prices to spiral in order to maintain nominal house prices?

Yes they would, they will throw their children on to the flames and put them into a life of indetured servitude to maintain house prices.

Most damning was a thread ages ago where anedotally people would rather have super high house prices than their children to have a future.

[winkie]

Yes they would, they will throw their children on to the flames and put them into a life of indetured servitude to maintain house prices.

Most damning was a thread ages ago where anedotally people would rather have super high house prices than their children to have a future.

....not all home owners want high prices, as time goes by the owners will become fewer and their children will demand change......for now a childs' future is looking far better by not buying.......rents will have to fall to affordable levels inline with real term property drops......can't pay, can't borrow, won't pay.

[DeepLurker]

Yes they would, they will throw their children on to the flames and put them into a life of indetured servitude to maintain house prices.

Most damning was a thread ages ago where anedotally people would rather have super high house prices than their children to have a future.

+1

Anecdotally, even my own mother - an otherwise very generous person, who goes to church and helps out her children/family members whenever she can - thinks that it's important to "get the market moving again", i.e. rising prices, so that current owners can start selling houses to the young couples who need them

[goldbug9999]

I would guess most people would want 'cheap' but rising house prices.

Yeah but thats because they are too stupid to realise that rising prices work against them when they come to trade up. It constantly amazes me how supposedly intelligent people find this concept so hard to grasp - "but if prices rise I'll make more profit on mine to use to trade up"

[Milton]

Most people are short-sighted, thick, and greedy. They expect everything without anything giving, and get angry when that doesn't happen. Of the intelligent ones most of them are also short-sighted and greedy, and of the ones who aren't short-sighted most of them are greedy.

Success should not measured by what you have, but by what you can do without.

We need to re-assess our values in order to lead a happy life.

A very difficult thing to do.

But it cannot be done in the UK.

Edited April 26, 2011 by Dan1

[ken_ichikawa]

Most people are short-sighted, thick,

You should hear what Wuffos (non skydivers) have to say to me sometimes:

Some class ones I heard over the last week:

Them: 'What happens if your parachute doesn't open?'

Me: 'you get your reserve out'

Them: what happens if your reserve doesn't open?'

Me: 'You die'

Them: 'Are you joking?'

Last temp job on a quiet Friday afternoon.

My boss: Skydiving? that's very interesting. So you skydive a lot?

Me: Yes, every spare moment I have.

My boss: Wow! So, has your parachute ever failed to open and you crashed into the ground?

Me: no.

Also recently

Mums mate: So you sky dive often

Me: as often as i can

Mums Mate: Do you go up in planes then?

Me: Would be a bit difficult if i didnt

[ken_ichikawa]

Success should not measured by what you have, but by what you can do without.

We need to re-assess our values in order to lead a happy life.

I think if people stopped using other people's yard sticks and people have a bit more humility and stopped being so face conscious society would be a lot better.

I.e. if I have X Y and Z I'll be happy...

Yet when they do have X Y and Z they aren't happy yet pretend to be happy which fools other people into thinking X Y and Z will make them happy.