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Crazy House Prices Have Been Noticed!

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Isn't it amazing that years into this financial crisis we are suddenly finding articles appearing suggesting house prices are too high!

Look at this

http://www.telegraph.co.uk/finance/personalfinance/comment/9974836/A-house-price-warning-for-first-time-buyers.html

The article shows an average income to house price ratio of 4.51 at present. It does not mention that the ratio is much higher in the South and lower in the North, but otherwise spot on. We have a lunatic Chancellor who wants to encourage people to borrow massive multiples of income at stupidly low rates and expect it all to turn out well when the govt is busy subsidising it all! I can't believe a Tory is even interested in this market manipulation. It is causing even more mal-investment and taking legitimate investment away from productive wealth creating industry. If he thinks pumping up a housing bubble will help UK plc then he is more misguided than I ever thought possible. :(

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I think the catalyst was the announcement of Help to Buy. That catastrophic policy clearly shows that politics will be put ahead of economics and economics will be put ahead of society. Seems society isn't happy about this.

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I can't believe a Tory is even interested in this market manipulation. It is causing even more mal-investment and taking legitimate investment away from productive wealth creating industry. If he thinks pumping up a housing bubble will help UK plc then he is more misguided than I ever thought possible. :(

I'm sure he is not so stupid to think that, it simply helps his bankster and landowner mates, that's why he does it. He clearly doesn't care one bit about the UK economy in general.

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Isn't it amazing that years into this financial crisis we are suddenly finding articles appearing suggesting house prices are too high!

Look at this

http://www.telegraph.co.uk/finance/personalfinance/comment/9974836/A-house-price-warning-for-first-time-buyers.html

The article shows an average income to house price ratio of 4.51 at present. It does not mention that the ratio is much higher in the South and lower in the North, but otherwise spot on. We have a lunatic Chancellor who wants to encourage people to borrow massive multiples of income at stupidly low rates and expect it all to turn out well when the govt is busy subsidising it all! I can't believe a Tory is even interested in this market manipulation. It is causing even more mal-investment and taking legitimate investment away from productive wealth creating industry. If he thinks pumping up a housing bubble will help UK plc then he is more misguided than I ever thought possible. :(

..this is the Chancellor's misguided route to inflate his way out of trouble ...he thinks ....but a bubble is a bubble ....ask Gordo the King Clown .... GO seems determined to follow in GB's steps ...ask Balls and Milliband ...they were all there ...taking part....where was Osborne....?..he should have been challenging ...not him ...wishes to create his own boom to bust.... :rolleyes:

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..this is the Chancellor's misguided route to inflate his way out of trouble ...he thinks ....but a bubble is a bubble ....ask Gordo the King Clown .... GO seems determined to follow in GB's steps ...ask Balls and Milliband ...they were all there ...taking part....where was Osborne....?..he should have been challenging ...not him ...wishes to create his own boom to bust.... :rolleyes:

Where were Cameron and Osborne in 2006? Campaigning against the financial crisis caused by Gordon Brown's spending cuts! blink.gif

You couldn't make it up.

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Where were Cameron and Osborne in 2006? Campaigning against the financial crisis caused by Gordon Brown's spending cuts! blink.gif

You couldn't make it up.

...hah ..hah ...Brown trying to save a few pence on the NHS in 2006...prior to wasting £Billions buying up our bankrupt Banks at the expense of the taxpayer ..all due to his policies...and the weakness of the FSA which he set up to report to himself and now closed down just in the last few days ...but the mess is getting messier...because it was underestimated by this lot...time for major change.. :rolleyes:

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Isn't it amazing that years into this financial crisis we are suddenly finding articles appearing suggesting house prices are too high!

Look at this

http://www.telegraph.co.uk/finance/personalfinance/comment/9974836/A-house-price-warning-for-first-time-buyers.html

The article shows an average income to house price ratio of 4.51 at present. It does not mention that the ratio is much higher in the South and lower in the North, but otherwise spot on. We have a lunatic Chancellor who wants to encourage people to borrow massive multiples of income at stupidly low rates and expect it all to turn out well when the govt is busy subsidising it all! I can't believe a Tory is even interested in this market manipulation. It is causing even more mal-investment and taking legitimate investment away from productive wealth creating industry. If he thinks pumping up a housing bubble will help UK plc then he is more misguided than I ever thought possible. :(

If UK house prices were 4.51xaverage incomes then wouldn't that make the average house around £115k?

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...hah ..hah ...Brown trying to save a few pence on the NHS in 2006...prior to wasting £Billions buying up our bankrupt Banks at the expense of the taxpayer ..all due to his policies...and the weakness of the FSA which he set up to report to himself and now closed down just in the last few days ...but the mess is getting messier...because it was underestimated by this lot...time for major change.. :rolleyes:

Indeed. And all those mistakes made by Brown weren't opposed by the current shower either. Quite the opposite in fact.

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If UK house prices were 4.51xaverage incomes then wouldn't that make the average house around £115k?

Its become blurred over the years. It used to be 3 x"single income." Increasingly both incomes are used in the case of dual income families.

All the second earner has achieved is bidding up the price of houses!

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I'm sure he is not so stupid to think that, it simply helps his bankster and landowner mates, that's why he does it. He clearly doesn't care one bit about the UK economy in general.

+1

The idea likely comes from that group rather than originating from Osborne himself.

It's very unlikely that Osborne came up with the idea himself although as Chancellor he seems happy to accept the blame for it - indeed he's obliged to take the blame for it.

Edited by billybong

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If UK house prices were 4.51xaverage incomes then wouldn't that make the average house around £115k?

Yes - the figures reflect a very skewed view of this. Certainly in the South an average house is around £230k, but up North anything from £40-120k will buy same thing. Averages are never a great guide for a whole country. Its about 8-10x av wage in Sussex to buy a 3 bed semi.

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I think the catalyst was the announcement of Help to Buy. That catastrophic policy clearly shows that politics will be put ahead of economics and economics will be put ahead of society. Seems society isn't happy about this.

I think Help to Buy has helped, but I had already noticed an increased number of articles in the MSM against high house prices.

Though I suspect the majority of voters still prefer high house prices, unfortunately. Osborne may be targeting them. Or, specifically, undecided voters in marginal constituencies.

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The policy, it seems, is to force up house prices by hook or crook because it makes Britons feel wealthier and encourages spending. [\quote]

Do people actually believe this? Do they actually think houses are magical?

Price rises are, obviously, correlated with periods of economic growth and increased consumer spending. All the evidence, economic theory, and basic common ******ing sense teaches us that it is economic growth that causes house price rises, not the other way around.

The only way that house price rises boost spending is by allowing for more debt.

I find it staggering that people could delude themselves to such a degree.

It's a cargo cult.

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The policy, it seems, is to force up house prices by hook or crook because it makes Britons feel wealthier and encourages spending. [\quote]

Do people actually believe this? Do they actually think houses are magical?

Price rises are, obviously, correlated with periods of economic growth and increased consumer spending. All the evidence, economic theory, and basic common ******ing sense teaches us that it is economic growth that causes house price rises, not the other way around.

The only way that house price rises boost spending is by allowing for more debt.

I find it staggering that people could delude themselves to such a degree.

It's a cargo cult.

[\quote]

The majority of the UK public are pig ignorant tbh.

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I think Help to Buy has helped, but I had already noticed an increased number of articles in the MSM against high house prices.

Though I suspect the majority of voters still prefer high house prices, unfortunately. Osborne may be targeting them. Or, specifically, undecided voters in marginal constituencies.

Not when they see their children and their children's children priced out......the people I talk to are against high house prices and rents........there are a few that are for it, mainly those that own more than one or are in negative equity.....they only need the high house prices to make them solvent. ;)

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Not when they see their children and their children's children priced out......the people I talk to are against high house prices and rents........there are a few that are for it, mainly those that own more than one or are in negative equity.....they only need the high house prices to make them solvent. ;)

I do hope you are right and I wrong winkie, but I fear that those "undecided voters in marginal constituencies" are not as wise as you, and the political parties may know that, through research.

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I do hope you are right and I wrong winkie, but I fear that those "undecided voters in marginal constituencies" are not as wise as you, and the political parties may know that, through research.

I would doubt that this policy wasn't actually a direct response to feed back from focus group research. I would also doubt that Osborne was fully behind it. Prior to the budget the housing market wasn't crashing and hence not in need of crash management. This is a cynical attempt to try to induce HPI.

This yet again shows how finely balance the public's opinion of housing costs is. I now notice how bearish the comments are on any housing articles are.

Another issue being focused in the public's consciousness is the corruption of the people who they did trust, ie. bankers.

Today the public feel every more alone when they chose to buy, the latest measures are to try to counter that emotion.

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ITV news has noticed too...

Interesting. Good news.

We've known for a long time that people upgrading houses don't benefit for higher house prices. Perhaps the penny is dropping now, for all those actually trying to upgrade, as they face a concrete situation.

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Interesting. Good news.

We've known for a long time that people upgrading houses don't benefit for higher house prices. Perhaps the penny is dropping now, for all those actually trying to upgrade, as they face a concrete situation.

Is this the same Kuenssberg that talked about the staggering cost of the housing crash- £24k lost on average. I wonder what might be concluded in thier report. A line of 'prices are too high' would be a change imo, much more likely to talk about banks not lending.

Laura Kuenssberg @ITVLauraK

Our exclusive report on @itvnews at 10 later with staggering cost of housing crash - more than hundred thousand families lose average of 24k

9:03 PM - 26 Feb 13

Edited by cheeznbreed

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Is this the same Kuenssberg that talked about the staggering cost of the housing crash- £24k lost on average. I wonder what might be concluded in thier report. A line of 'prices are too high' would be a change imo, much more likely to talk about banks not lending.

Laura Kuenssberg @ITVLauraK

Our exclusive report on @itvnews at 10 later with staggering cost of housing crash - more than hundred thousand families lose average of 24k

9:03 PM - 26 Feb 13

Perhaps she doesn't even have an overall view or agenda, and just does a daily job, filling up her allotted air time, trying to create attention grabbing headlines? Not sure. TBH I've never actually noticed her much.

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Interesting. Good news.

We've known for a long time that people upgrading houses don't benefit for higher house prices. Perhaps the penny is dropping now, for all those actually trying to upgrade, as they face a concrete situation.

One might even say they have hit a.... brick ....wall? /getscoat

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  • 243 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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