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gruffydd

Britain Drones On About Building More Homes - Ireland Caps Mortgages

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and it is and it's worked! But NOOOOOOOOOOOOOOOOO It's all about building enough homes to sell [mainly] to landlords. British logic? Think I might have to do a "British" joke!

Edited by gruffydd

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No but at least they're responsing sensibly to the latest housing crisis in Dublin - cap the mortgages to stop prices rising any further... are people terrified of logic in Britain, or something?

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No but at least they're responding sensibly to the latest housing crisis in Dublin - cap the mortgages to stop prices rising any further... are people terrified of logic in Britain, or something?

Britain is increasingly being built around banking it`s as simple as that

But i`m sure someone will be along shortly to say building more houses will solve the problem

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The population of London has increased by almost 2 million since the 1980s. Relatively little construction of housing has occurred in London in that time so that increased population is just being packed ever more tightly into the same housing stock.

It's perfectly possible to have both a housing supply problem (particularly a localised one in London/SE) and a credit-driven house price bubble at the same time.

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It sounds as if Ireland's policy (mortgage cap) is being influenced by eu/eurozone economic policies likely with some German input whereas the UK is all about UK banking.

Ireland's GDP per Capita is already significantly higher than the UK's and in due course it wouldn't be much of a surprise to see Ireland's economy move even further ahead of the UK's economy - despite the UK having been in the eu for so long and Osborne's claims that in a few years time the UK will be the richest country in the world, tiny UK homes and all.


https://

en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita

Edited by billybong

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It sounds as if the policy is being influenced by eu/eurozone economic policies likely with some German input whereas the UK is all about UK banking.

Ireland's GDP per Capita is already significantly higher than the UK's and in due course it wouldn't be much of a surprise to see Ireland's economy move even further ahead of the UK's economy - despite the UK having been in the eu for so long and Osborne's claims that in a few years time the UK will be the richest country in the world, tiny UK homes and all.

it hasn't translated so well in terms of debt:GDP though has it?

http://www.economicshelp.org/blog/774/economics/list-of-national-debt-by-country/

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it hasn't translated so well in terms of debt:GDP though has it?

It's bad of course and that much is well recognised but the UK's total debt is similar to Japan's. Ireland would have to be going some to match that.

article-2091057-0F8867F800000578-701_468

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It's bad of course and that much is well recognised but the UK's total debt is similar to Japan's. Ireland would have to be going some to match that.

article-2091057-0F8867F800000578-701_468

I can find wildly different numbers for household debt

According to this Allianz research, Ireland is at 106% and UK at 95.8% of GDP

http://www.cityam.com/1411501631/debt-map

Yet here, Ireland is at about 106% compared to 406% of GDP for the UK according to this wiki

https://en.wikipedia.org/wiki/List_of_countries_by_external_debt

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Then there's the financial sector and corporate sector debt figures which I believe are also included in the chart above. The information generally available is scant, fragmented and usually lags by a few years and that's most likely intentional. From the information that is availabe it seems unlikely that Ireland is in a worse overall position than the UK and their policymakers at least seem to be openly recognising the damaging effect crazy house prices have on the general economy which is more than be said for the UK's policymakers.

Edited by billybong

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Then there's the financial sector and corporate sector debt figures which I believe are also included in the chart above. The information generally available is scant, fragmented and usually lags by a few years and that's most likely intentional. From the information that is availabe it seems unlikely that Ireland is in a worse overall position than the UK and their policymakers at least seem to be openly recognising the damaging effect crazy house prices have on the general economy which is more than be said for the UK's policymakers.

Ireland of course is currently dealing with 5 years of net emigration - quite an opposite situation to that of the UK

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Ireland of course is currently dealing with 5 years of net emigration - quite an opposite situation to that of the UK

Exactly. Ireland does not appear to have a shortage of housing, but easy money is beginning to flow again. In the UK we have easy money, government help and much tighter supply of homes that people seek to buy. There is no one problem in the UK, it is a combination of many factors.

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It sounds as if Ireland's policy (mortgage cap) is being influenced by eu/eurozone economic policies likely with some German input whereas the UK is all about UK banking.

Ireland's GDP per Capita is already significantly higher than the UK's and in due course it wouldn't be much of a surprise to see Ireland's economy move even further ahead of the UK's economy - despite the UK having been in the eu for so long and Osborne's claims that in a few years time the UK will be the richest country in the world, tiny UK homes and all.

Britain has an unproductive snail-like economy, in comparison, at the moment - stagflation all the way! http://www.theguardian.com/world/2015/sep/10/ireland-economy-surges-with-gdp-growth-forecast-at-6

Visiting Britain, having lived there for years, it feels stagnant and rather unhappy - Germany feels better than most (Berlin anyway - working between Dublin/Belfast/Berlin at the mo - Belfast is pretty awful but then it was back in the 90s when I last lived here, and now it has loads of chain restaurants and hotels (woopy doo NOT!) and is fast losing any character it had. Dublin thriving again off the back of specific sectors, Berlin the most relaxing and cheapest place of the lot! People seem to know how to enjoy life in Berlin instead of rushing after some neoliberal Anglo-American mirage, THANK GOD!

Edited by gruffydd

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Britain has an unproductive snail-like economy, in comparison, at the moment - stagflation all the way! http://www.theguardian.com/world/2015/sep/10/ireland-economy-surges-with-gdp-growth-forecast-at-6

that is true

too much capital tied up in housing - non productive assets

too much wealth created by rising house prices - a disincentive to work if your house earns more than you can

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and it is and it's worked! But NOOOOOOOOOOOOOOOOO It's all about building enough homes to sell [mainly] to landlords. British logic? Think I might have to do a "British" joke!

+ 1000

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that is true

too much capital tied up in housing - non productive assets

too much wealth created by rising house prices - a disincentive to work if your house earns more than you can

Yes it feels cheap in so many ways, and chav like... sinking into a mire of spivdom!

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http://

www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Ireland&city1=Dublin&country2=United+Kingdom&city2=London

Comparison between London and Dublin - average wages are similar but most everything is significantly cheaper in Dublin - especially housing.

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It's perfectly possible to have both a housing supply problem (particularly a localised one in London/SE) and a credit-driven house price bubble at the same time.

Actually its essential to have both - you cant have a credit bubble where there is a supply side surplus.

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it will work unless all the locals get outbid by overseas buyers and end up forced to rent from them, with their massive 3.6x mortgages....

Quite. The marginal cash buyer can always bid higher. It doesnt require a higher multiple it only requires £1 more in savings from earnings resulting from the lower multiple.

It does nothing to increase supply (UK problem).

Moreover in a fixed currency system (euro) all it will do is export savings somewhere else as happened with german savings flowing into piigs contributing to their property bubbles.

Edited by R K

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Actually its essential to have both - you cant have a credit bubble where there is a supply side surplus.

I'm not so sure. Tulip bulbs and South Sea Company shares weren't exactly essentials.

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It sounds as if Ireland's policy (mortgage cap) is being influenced by eu/eurozone economic policies likely with some German input whereas the UK is all about UK banking.

Ireland's GDP per Capita is already significantly higher than the UK's and in due course it wouldn't be much of a surprise to see Ireland's economy move even further ahead of the UK's economy - despite the UK having been in the eu for so long and Osborne's claims that in a few years time the UK will be the richest country in the world, tiny UK homes and all.

That did not smell right and a little bit of digging shows why. The GDP is about 20% over-stated due to firms nominally locating their headquarters there for tax reasons.

http://blogs.ft.com/ftdata/2015/05/13/ireland-is-the-wealthiest-economy-in-europe-or-not/

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That did not smell right and a little bit of digging shows why. The GDP is about 20% over-stated due to firms nominally locating their headquarters there for tax reasons.

and that sort of thing doesn't happen in the UK. I don't think so. It all balances out and might even favour the UK's GDP per Capita along with all the financial fraud and massive debt etc etc etc.

It might not sound right because of the decades old propaganda that the UK is so rich compared to Ireland? - but that's not true any more and hasn't been correct for a few years now and the sooner it's realised the better.

Incidentally the GDP per Capita figures I quoted didn't show Ireland as "the wealthiest country in europe" (FT blog) just that their GDP per Capita figure is significantly better than the UK's despite Ireland's recent problems - and that difference is confirmed by the numbeo living standards comparison of say Dublin with London posted earlier in the thread.

Edited by billybong

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