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SleepyHead

High Housing Costs Price Brits Out Of World Jobs Market

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Increasing housing costs, rather than increase the nations wealth, actually just increase British peoples labour cost.

Why would anyone who wants to set up a business, head for the UK, when we Brits cost so much to house ourselves?

Why don't our politicians or media ever get this?

Those countries that have had their housing crashes, can at the very least now benefit from much cheaper workers going forward. (When/if demand ever returns)

But sadly, UK politicians seem to insist on making us too expensive to employ.

Interested to hear HPCer views. :)

Edited by sleeping dog

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You forgot to include the cost of energy,food and transport.

All of which make the UK uncompetitive, oh and taxes.

Seems the cards are somewhat stacked against us.

True.

.... and politicians seem to struggle to understand those inflating costs making us un-competitive, but they are totally blind to housing costs.

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True.

.... and politicians seem to struggle to understand those inflating costs making us un-competitive, but they are totally blind to housing costs.

I sent an email to Douglas Carswell (conservative/Harwich constituency) asking his opinions on high house prices and whether this helps or hinders the economy. Give credit to the bloke, he replied and said that high house prices do hinder the economy and economic investment due to the high cost of living. Mind you, he never said what should be done about it.

I did contact him in 2007 about people borrowing too much and he said then that its wrong to limit lending to individuals.

Not sure what to make of him to be honest. I did think that i'd email him back but is this just a wasted exercise ?

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I sent an email to Douglas Carswell (conservative/Harwich constituency) asking his opinions on high house prices and whether this helps or hinders the economy. Give credit to the bloke, he replied and said that high house prices do hinder the economy and economic investment due to the high cost of living. Mind you, he never said what should be done about it.

I did contact him in 2007 about people borrowing too much and he said then that its wrong to limit lending to individuals.

Not sure what to make of him to be honest. I did think that i'd email him back but is this just a wasted exercise ?

Yes, Douglas Carswell and Steve Baker are among the few MPs who understand real world economic.

I think they believe in people taking responsibility for their own actions and if one borrow too much, they (and the lender) suffer the consequences.

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Cameron has just been on ITV News on a PR visit to a Chorley building site to promote Home Buy (or whatever it's called), going on about helping hard working families (again) while not going back to 110% mortages. Even saying this was necessary because even (hard working) two income households cannot get a mortgage... so the government must step in to help them.

Whilst the obvious thing is that house prices are too high, acknowledged by the banks by a high deposit requirement, Cameron and it seems the whole (multiple property owning) political class simply think it's beneficial (to themselves and the various lobbying vested interests) to subsidise and succour in the gullible.

This bubble has completely crippled this country, yet still they want to interfere, as if it's the 'right thing to do.'

Sickening abuse of power and other people's money.

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Why don't our politicians or media ever get this?

As somebody once said- it's hard to get someone to understand something if their job and personal wealth prospects depend on them not understanding it. :lol:

To many people have bet the farm on property for there ever to be a deliberate policy to reduce prices- only if it cannot be avoided will this happen.

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Even saying this was necessary because even (hard working) two income households cannot get a mortgage... so the government must step in to help them.

Is this same Cameron who is morally outraged by the idea the government is funding spare bedrooms? :lol:

This is not about helping anyone but Cameron's chances of getting re-elected.

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I did contact him in 2007 about people borrowing too much and he said then that its wrong to limit lending to individuals.

Seems a fair point if the individual borrowers are responsible for the possible consequences of their over extended borrowing but NOT if individual borrowers over extend themselves and then taxpayers and savers are expected to bail them out.

Edited by billybong

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As somebody once said- it's hard to get someone to understand something if their job and personal wealth prospects depend on them not understanding it. :lol:

To many people have bet the farm on property for there ever to be a deliberate policy to reduce prices- only if it cannot be avoided will this happen.

TOO MANY!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NOT "TO MANY"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

JEEZSSSSSSSSS......... :angry: :angry: :angry: :angry:

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This bubble has completely crippled this country..

The most important social issue of our generation. Destroying families and enslaving the youth and we are busy wasting men and money chasing ghosts in Afghanistan and now sh@t stirring in Syria. Is there anyone left with half a brain that hasn't worked out that we are ruled by evil.

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True.

.... and politicians seem to struggle to understand those inflating costs making us un-competitive, but they are totally blind to housing costs.

they cant do anything about it...

with 40% of the workforce in a job for life public sector role, they need private sector wages to grow...house prices high or not.

The Country is dying under the weight of many unproductive "helpers".

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Increasing housing costs, rather than increase the nations wealth, actually just increase British peoples labour cost.

Why would anyone who wants to set up a business, head for the UK, when we Brits cost so much to house ourselves?

Why don't our politicians or media ever get this?

Those countries that have had their housing crashes, can at the very least now benefit from much cheaper workers going forward. (When/if demand ever returns)

But sadly, UK politicians seem to insist on making us too expensive to employ.

Interested to hear HPCer views. :)

I know... "see my sig." and all that...

Though I'm not sure our politicians don't get this. I think they do, at least partially, specially the leadership. I think the main problem is that allowing house prices to fall is a vote loser, since 2/3 of households are owner occupied, and they vote at a higher rate than the other third.

And despite all that the government did try to liberalise planning, but it was blocked by the Tory base and other anti-building lobbies such as the National Front Trust and the Campaign to Protect Rural England, all supported by the Telegraph and other right wing media. Actually also the left wing media is against building, though for "green" reasons, since they are against building on the countryside and also around towns and villages, the so called "greenbelts"! This view is supported by the BBC, the Guardian, Independent, etc. Result? Very few house building.

(...)

It is all deliberate - next they unleash anarchy on the population with East European 'bandits' and later Turkish muslim mass invasion to finish off the UK Whites.

Zionists - who have usurped our country at top of every major party are the cause!

:o

:blink:

This is absurd erranta. Our bubble was home-made. You really should calm down and take a look at what you've been saying. Your positions and posts have become increasingly absurd in these past weeks. Please think about our bubble inflating phase, Gordon Brown (a Presbiterian), the voters, etc. then read the post you have just posted.

These are not real problems erranta. You are imagining them. They are NOT real. Really.

As somebody once said- it's hard to get someone to understand something if their job and personal wealth prospects depend on them not understanding it. :lol:

To many people have bet the farm on property for there ever to be a deliberate policy to reduce prices- only if it cannot be avoided will this happen.

Seems a fair point if the individual borrowers are responsible for the possible consequences of their over extended borrowing but NOT if individual borrowers over extend themselves and then taxpayers and savers are expected to bail them out.

+ 1

As I said above, 2/3 of households are owner occupied, and they like the high "value" of their houses.

TOO MANY!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NOT "TO MANY"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

JEEZSSSSSSSSS......... :angry: :angry: :angry: :angry:

:lol:

Edited by Tired of Waiting

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They do "get it"

They destroyed our place in the manufacturing World.

They are now culturally deconstructing the country with PC ********, anti-semite slander and PC-ness with a disintergration of law enforcement for the most viscious and repeat offenders.

It is all deliberate - next they unleash anarchy on the population with East European 'bandits' and later Turkish muslim mass invasion to finish off the UK Whites.

Zionists - who have usurped our country at top of every major party are the cause!

....and then hitler 2.0 appears as the saviour of the white race with a bucket full of genetic weapons to wipe out everybody except those with blonde hair and blue eyes.

(heard this somewhere before a few decades ago)...and to have a re-run of ww2 anti-jew pogroms on steroids

and this time the jews will have nobody to help them(except they start praying to god etc etc)

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....and then hitler 2.0 appears as the saviour of the white race with a bucket full of genetic weapons to wipe out everybody except those with blonde hair and blue eyes.

(heard this somewhere before a few decades ago)...and to have a re-run of ww2 anti-jew pogroms on steroids

and this time the jews will have nobody to help them(except they start praying to god etc etc)

You two need to decide if the Yids are running the show or not. :rolleyes:

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Spectre of permanently low property prices need not be scary

These days it is easy to imagine that most people in society are ardently wishing for a return to robust growth in the value of land, houses and apartments.

However, while it is obviously the case that we need increased activity in the housing market, that should not be confused with wanting a return to rising prices.

The reason is pretty obvious. The cost of housing, by way of wages, is a cost that permeates all aspects of business life. If Ireland Inc is targeting international competitiveness, then business should lobby government for a system that restrains property prices.

During the bubble years this columnist, during a short visit to Stockholm, read a hotel room brochure in which the lord mayor welcomed the guest to the Swedish capital and pointed out that, as part of a drive to attract inward investment, the city was providing affordable, high-quality housing, so as to restrain wage costs. The contrast with the dysfunctional policies then being pursued back in Ireland was striking.

http://www.irishtimes.com/business/economy/ireland/spectre-of-permanently-low-property-prices-need-not-be-scary-1.559110

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Increasing housing costs, rather than increase the nations wealth, actually just increase British peoples labour cost.

Why would anyone who wants to set up a business, head for the UK, when we Brits cost so much to house ourselves?

Why don't our politicians or media ever get this?

Those countries that have had their housing crashes, can at the very least now benefit from much cheaper workers going forward. (When/if demand ever returns)

But sadly, UK politicians seem to insist on making us too expensive to employ.

Interested to hear HPCer views. :)

Relative to whom ?

Depends alot on currency - we've devalued 25% realtive euro and dollar (and dollar pegs)

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I used to believe it was ignorance and a out-dated economic model but I'm less convinced as time goes on. Successive UK govts have borrowed and spent an additional £1 trillion into the economy since 2008, a simply incredible sum. And what do we have to show for it? All they've really succeeded in doing is preserving the phantom collateral in the housing market while household incomes and the country's prospects have steadily declined. Meanwhile, the acute housing shortage has been addressed by building fewer and fewer new homes.

It must be obvious to the political class that this policy of extend-and-pretend has run into the headwinds of diminishing returns. Which leaves only one remaining explanation - they're fully aware of what they're doing but fear the alternative even more.

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Increasing housing costs, rather than increase the nations wealth, actually just increase British peoples labour cost.

Why would anyone who wants to set up a business, head for the UK, when we Brits cost so much to house ourselves?

Why don't our politicians or media ever get this?

Those countries that have had their housing crashes, can at the very least now benefit from much cheaper workers going forward. (When/if demand ever returns)

But sadly, UK politicians seem to insist on making us too expensive to employ.

Interested to hear HPCer views. :)

That's a really original point, I've never thought of it like that but you make a very astute observation.

At least we have our own currency so in the final account we can at least partially adjust for those higher costs in our exchange rates...I say partially because that in turn would push up the cost of imported raw materials...but for countries in the Euro there's nowhere to hide those additional housing costs.

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That's a really original point, I've never thought of it like that but you make a very astute observation.

At least we have our own currency so in the final account we can at least partially adjust for those higher costs in our exchange rates...I say partially because that in turn would push up the cost of imported raw materials...but for countries in the Euro there's nowhere to hide those additional housing costs.

Thank you. smile.gif

You' make an important point about the currency. It is absorbing some of the shock, but as you say, devaluing has a limited time span of effectiveness.

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Thank you. smile.gif

You' make an important point about the currency. It is absorbing some of the shock, but as you say, devaluing has a limited time span of effectiveness.

That is the mechanism and the indication of the whole country being "impoverished, including property owners".

But that doesn't eliminate the internal inequality, between the property haves and have-nots. The exploitation continues, and on a downward spiral of poverty. The parasites going down with the host.

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It's not as if supporting house prices and then at some point in time allowing them to revert to more normal levels (and helping rebalancing the economy to grow) is even better aligning the UK economy to say the US economy or maybe the eu's economy.

For a long time the UK economy was more in time to the US economy's cycle but with the eu/euro coming into existence maybe there was a case for phasing the UK economy more in line with the developing eu cycle.

But no in that connection there seems to be no rhyme or reason to the UK's policies. The policies are so haphazard they now seem to be missing the boat everywhere. It's just total incompetence but with VI.

Edited by billybong

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  • 261 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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