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High Housing Costs " Are A Good Thing For The Westcountry "


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Apparently high housing costs "are a good thing for the Westcountry", according to the Editor of the Western Morning News. But the editor ignores the fact that high house prices mean increased housing costs and living costs - bar for those who bought before the boom, of course. For these, it is just a windfall, a lottery win, but extracted from the younger generation.

W M N Opinion

Strong property market is a good thing for the West

Western Morning News

The reaction today to the news that the price of homes in coastal locations – and that includes a great deal of the Westcountry – have risen over the past decade more strongly than those in almost any other location will be understandably welcomed by home owners. There is nothing at all wrong with that. People who have bought property wisely, or inherited it from others, have generally done well here in the South West over the past half century or more. It is no secret that a good deal of the wealth in our region has been built around the growing value of property. That is nothing for the region or homeowners to be ashamed of.

Yet in some circles the news that the average price of a home in Salcombe, South Devon, is close on half a million pounds or that Padstow has seen some of the most dramatic price increases will be seized on as a negative. The fact that properties in towns from Wadebridge to Minehead have all seen healthy increases in their value since 2002 will be used, in some circles, to bolster the view that something radical needs to be done to bring down the price of property in general. Yet that would be disastrous for many hard-working people whose biggest asset is their house and who want to be able to either use the money tied up in it at some time or leave it to their family.

It is time the Westcountry – and particularly its smart coastal communities – learned to accept and even celebrate the fact that property prices remain healthy. It is in the interests of the financial health of the region as a whole that things stay that way.

That does not mean, however, that the "closed" sign has to go up so far as new entrants to home ownership are concerned. Today, it so happens, the first properties at the Cranbrook new town near Exeter, go on sale. There will be properties there that are affordable, just as there are in some other parts of our region. Imaginative schemes to open up the property market are being found; part-ownership schemes, local homes specifically for local people and self-build initiatives are all being tried. Giving councils the ability to restrict second home ownership, through the planning system, should not be ruled out. Overall, however, the strength of the South West economy relies, in large part, on the continuing strength of its property market. That must be maintained.

"Be the first to comment" LINK: http://www.thisiscornwall.co.uk/WMN-opinion-Strong-property-market-good-thing/story-16062644-detail/story.html

;)

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Edited by Tired of Waiting
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Apparently hi housing costs "are a good thing for the Westcountry", according to the Editor (!) of the Western Morning News. But the editor ignores the fact that high house prices mean increased housing costs and living costs - bar for those who bought before the boom, of course. For these, it is just a windfall, a lottery win, but extracted from the younger generation.

"Be the first to comment" ;)

http://www.thisiscornwall.co.uk/WMN-opinion-Strong-property-market-good-thing/story-16062644-detail/story.html

.

High, how are you?

Whats all this Hi housing costs?

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'Strong' as in the steroid addled bodybuilder who looks strong, but whose heart and liver is about to give out sense. :lol:

The fundamentals underpinning a 'strong' property market are similarly dire.

Its not really worth arguing over because the Editor hasnt posted an argument, its simply say's high property prices are good because they are good' :blink:

Thats not an argument, that's pointless inane drivel.

There is no explanation of how high debt loads necessary to sustain such prices burden workers, steal their purchasing power, diverts credit from job creating businesses.

There is no explanation of how the low rates necessary to sustain such prices have decimated annuity yields many of those same property rich-and now cash poor elderly property owners depend on.

There is no explanation as to how the scarcity of planning permissions prohibits job creation in housing and construction

There is no explanation as to how the interest rate policy of debasement actually means those same 'weathly' property owners see every pound in their pocket buy less.

There is no explanation as to how the vast amount of housing benefit (the cost of which is over £1000 for every other household - equal to the council tax payment) required because of unaffordable housing steals money from productive workers.

I could go on...

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'Strong' as in the steroid addled bodybuilder who looks strong, but whose heart and liver is about to give out sense. :lol:

The fundamentals underpinning a 'strong' property market are similarly dire.

Its not really worth arguing over because the Editor hasnt posted an argument, its simply say's high property prices are good because they are good' :blink:

Thats not an argument, that's pointless inane drivel.

There is no explanation of how high debt loads necessary to sustain such prices burden workers, steal their purchasing power, diverts credit from job creating businesses.

There is no explanation of how the low rates necessary to sustain such prices have decimated annuity yields many of those same property rich-and now cash poor elderly property owners depend on.

There is no explanation as to how the scarcity of planning permissions prohibits job creation in housing and construction

There is no explanation as to how the interest rate policy of debasement actually means those same 'weathly' property owners see every pound in their pocket buy less.

There is no explanation as to how the vast amount of housing benefit (the cost of which is over £1000 for every other household - equal to the council tax payment) required because of unaffordable housing steals money from productive workers.

I could go on...

Excellent post ES.

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I have come to the conclusion that one of the reasons why certain people want to keep housing costs high apart from their perceived fear of loss of wealth is they are wanting to keep the riffraff from joining them. ;)

Yes, I've noticed that too, here: "(...) properties at the Cranbrook new town near Exeter, go on sale. There will be properties there that are affordable, just as there are in some other parts of our region. (...) ".

Edit: I've just noticed something else, and very positive! That editor's tone is defensive! This is new.

He is trying to argue that high house prices are a good thing. But this is a very very new phenomena! Up to now it has been generally assumed, taken for granted, that high house prices are a good thing! :)

Edited by Tired of Waiting
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Excellent comments posted, how about sending a copy of your comment to the letters page for a wider audience please.

Newspaper address

The Western Morning News

17 Brest Road,

Derriford,

Plymouth,

PL6 5AA

No surprise, the owners of the local paper.

Northcliffe Media

Northcliffe Media is a division of Daily Mail & General Trust (DMGT) which has UK and international media interests spanning national and regional newspapers, news and classified websites, television, radio, exhibitions and information publishing.

Bill Martin editor

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Wow what an idiot. A clear example of how unearned this wealth transfer is, has IQ ever been so inversely proportional to wealth in history?

By the by you've probably tripled that websites readership now, the points raised in the comments might start an actual debate in print, you never know.

"More than 2 comments on my article Marjorie! I fell off my unearned chair onto my ignorant selfish behind! "

Edited by cybernoid
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It is no secret that a good deal of the wealth in our region has been built around the growing value of property.

Says it all. Growing "value" of property, not mentioning the growing debt to support those property values. What a plonker. I'd bet he's overleveraged.

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Yes, I've noticed that too, here: "(...) properties at the Cranbrook new town near Exeter, go on sale. There will be properties there that are affordable, just as there are in some other parts of our region. (...) ".

Edit: I've just noticed something else, and very positive! That editor's tone is defensive! This is new.

He is trying to argue that high house prices are a good thing. But this is a very very new phenomena! Up to now it has been generally assumed, taken for granted, that high house prices are a good thing! :)

My first impression too. Strident, ignorant selfish and. above all, defensive.

A shameless popularity seeker, with a little bit of a guilty conscience.

Edited by juvenal
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Says it all. Growing "value" of property, not mentioning the growing debt to support those property values. What a plonker. I'd bet he's overleveraged.

As long as value is increasing proportional to quality, I don't see the problem. If it's just the same old tired housing stock, it certainly should only be depreciating as it gets older, like cars do, to be fair.

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'Strong' as in the steroid addled bodybuilder who looks strong, but whose heart and liver is about to give out sense. :lol:

A colleague of a former flat-mate was a keen body-builder covered from neck to toe in muscles but he had trouble climbing a single flight of stairs without getting out of breath.

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In journalistic terms it is a very good article.

It doesn't matter that it is untrue, it gets people's blood boiling and they buy more newspapers.

Journalism, despite its high sounding (but false) principles is not about telling people the news.

It is about selling and making a profit.

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In journalistic terms it is a very good article.

It doesn't matter that it is untrue, it gets people's blood boiling and they buy more newspapers.

Journalism, despite its high sounding (but false) principles is not about telling people the news.

It is about selling and making a profit.

Buy more newspapers :blink: .....sorry, but when an article lacks so much credibility anything else associated with it also does.....I would say it would put people off buying again, that is if they purchased it in the first place. ;)

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Buy more newspapers :blink: .....sorry, but when an article lacks so much credibility anything else associated with it also does.....I would say it would put people off buying again, that is if they purchased it in the first place. ;)

Could someone who's registered please post the following on my behalf?

"or leave it to their family."

Err, so you have four kids and a house. Houses cost £1,000,000, so each kid gets £250,000 when you die (from the sale of the house). How much does each child have to borrow to buy a house of their own?

How much do they have to borrow if houses only cost £100,000?

Clue. The former is greater than the latter.

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Incidentally, I notice that their comment rating system is flawed - you can rate a comment, then rate it again after X hours, even if your browser is still open.

Of course, I would strongly discourage fellow HPCers from taking advantage of this wee bug.

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After three hours, my addition still hasn't appeared.

"Dear Editor, I can see why your paper is struggling to sell copies and attract advertisers, you clearly have no appreciation of the effect that high houseprices have had upon your region's economy, and upon the lives of your average readers. I can only assume that you penned a deliberately inflammatory 'puff' editorial, otherwise your grasp of economics is incredible.

High houseprices lead to high mortgage repayments to service them, raising the costs of everything else in your region's economy, including YOUR labour costs. At the bottom of this heap is your paper and the amount of disposable income that business has for advertising and your readers have to buy your rag, if they are so inclined. "

Edited by LiveinHope
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Pity you have to jump through hoops to comment or I would have loved to point out that the intellectual deficiency that would be responsible for this type of article was sadly also responsible for the dire state of the south wests local economy via a credit bubble fueled house price inflation that sucked out the real wealth of the region.

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After three hours, my addition still hasn't appeared.

"Dear Editor, I can see why your paper is struggling to sell copies and attract advertisers, you clearly have no appreciation of the effect that high houseprices have had upon your region's economy, and upon the lives of your average readers. I can only assume that you penned a deliberately inflammatory 'puff' editorial, otherwise your grasp of economics is incredible.

High houseprices lead to high mortgage repayments to service them, raising the costs of everything else in your region's economy, including YOUR labour costs. At the bottom of this heap is your paper and the amount of disposable income that business has for advertising and your readers have to buy your rag, if they are so inclined. "

bit harsh.

it's only a local rag.

most of such publications have been glorified estate agent's newsletters for the best part of 20 years now.

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  • 439 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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