Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Hair-Of-Dog Policy Risks U.k. Housing Boom Repeat, Turner Says

Recommended Posts

http://www.bloomberg.com/news/2013-10-28/hair-of-dog-policy-risks-u-k-housing-boom-repeat-turner-says.html

Britain risks repeating the debt-fueled binge that led to the credit crisis as the government relies on a hair-of-the-dog remedy for the economy, said former Financial Services Authority Chairman Adair Turner.

“We had a fantastic party, we got a whacking great hangover, and we’ve decided that the best cure is a really stiff drink,” Turner said in an interview in Singapore on Oct. 25. “Which is the same all over again -- get the housing market going again.”

House prices in England and Wales rose 3.1 percent from a year earlier, the biggest gain since 2007, Hometrack Ltd. said today. The report adds to evidence that Chancellor of the Exchequer George Osborne’s Help to Buy program is stoking the property market.

Turner added his voice to critics including the opposition Labour Party and the International Monetary Fund who say the initiative, which cuts deposit requirements for people wanting to get onto the property ladder, could fuel another property bubble. In London, prices are soaring amid demand from cash-rich international buyers.

“We now have an incredibly frothy central London and wider London market and an increasingly buoyant across-the-economy market,” he said. “It’s that increasingly buoyant across-the-economy market that we have to watch carefully and make sure that we don’t allow it to go from reasonable buoyancy to excess.”

Now the housing market is just buoyant.... And we had a fantastic party... I really don't recall this fantastic party I just seem to remember people just getting larger and larger loans to fund the bar bill.

Share this post


Link to post
Share on other sites
“We now have an incredibly frothy central London and wider London market and an increasingly buoyant across-the-economy market,” he said. “It’s that increasingly buoyant across-the-economy market that we have to watch carefully and make sure that we don’t allow it to go from reasonable buoyancy to excess.”

In other words:-

"We don't give a sh1t about London prices. We welcome all those cash rich foreign tax exiles paying obscene prices to get a pied a terre in our tax haven. So we're going to ignore all of that as usual".

Share this post


Link to post
Share on other sites

It doesn't lead to a good message for election.

They'd be better doing some proper work on reviving northern manufacturing / industry and getting overseas investment in to that.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 406 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.