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Theresa May Touches On Housing Crisis

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Theresa May has written an opinion piece in today's Times, including the following sentences on housing:

"Monetary policy, in the form of super-low interest rates and QE, has helped those on the property ladder at the expense of those who can't afford their own home."

...

"It's harder than ever for young people to buy their first house. There is a growing divide between a more prosperous older generation and a struggling younger generation. And there is a gaping chasm between London and the rest of the country."

Shame no mention of BTL but the above is encouraging

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... but the above is encouraging

I'm afraid, all I can see there is "stating the bleeding obvious".

What I'd like to hear are her policies to deal with those observations.

Raise interest rates?

State funded house building (at scale)?

Subtle legislative changes to encourage private sector building?

Extending perverse credit facilities to the poorest in society to ensure they stay poor and become more subservient?

Land 'value' tax? (By commute time to Westminster?)

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I remember in 2010 when newly minted housing minister Grant Shapps was touring the TV and radio studios on behalf of his boss David Cameron, saying exactly the same thing as Theresa May is saying now. His proposal was that house prices should rise less quickly than wages for an extended period so that wages could catch up. Of course, they didn't actually put any policies in place that would help that happen (quite the reverse), so here we are now.

Bill Clinton was the master of going around talking to the struggling poor about how he felt their pain and then doing nothing about it. 25 years of that behaviour from ruling classes around the world has created the level of cynicism we now have in electorates across the world.

Edited by Dorkins

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Well, she's kind of accepting that there is an "issue". It doesn't mean she'll do anything. You can be assured any route forward proposed will be to support prices, hence more HTB etc.

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Osborne (Cameron too) in 2010......

http://news.bbc.co.uk/2/hi/uk_news/politics/8492583.stm

Housing 'bubble'

He said the pace of "fiscal tightening" had to be done in co-ordination with the Bank of England and said Labour's plans to halve the deficit in four years was "not regarded as credible".

He also said a Conservative government would seek higher exports, business investment and savings as a share of Britain's GDP.

Mr Osborne began his speech at the British Museum by saying the "old" economic model was built on "shaky foundations" of a public spending boom, an "overblown" banking sector, and consumer borrowing based on a house price "bubble" - and said new sources of growth were needed.

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Maybe she'll come out with something like "No more house price boom and bust".

Words are easy.

She's been in Parliament for nearly 20 years during the period when house prices went crazy and including all the Help to Buy stuff etc - and she's just spotted it now? Better late than never and if she becomes Prime Minister how many more years before something actually gets done rather than her being just another one riding the stamp duty, mortgage lending and lending secured against house price equity etc wave.

Incidentally before getting into Parliament she worked at the BoE and apparently her husband is a banker - there seems to be no getting away from it.

Edited by billybong

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She'll prolly keep osbo as chancellor or better still move him to housing minister?

Pretty sure we'll have a new Chancellor after this. Osborne is damaged goods.

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All good retorts but what gives me some hope is they've seen the stuff they've tried to fix it isn't working and they know they need to try something new. Let's just hope they don't throw out the mortgage interest tax relief change and the stamp duty hikes for BTL - renters need to be protesting loudly for those to stay right now

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She's smart enough to understand demographics. I wouldn't be surprised if she kicked away the props.

+1. I would be rapidly kicking away any (even vague) prop I could find. One reason is that you have the perfect excuse with Brexit, the other is that exactly who else are you going to vote for with Corbyn locked in on the Labour side of things.

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If I were still a Conservative party member I'd be in a quandary, but faced with the choice of two unacceptable candidates I'd probably have to vote for May, given that the alternative is the dreadful Andrea Leadsome.

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May has said this ONLY because Leadsom intimated that May "doesn't understand young 'uns coz she's not a mum". This is political posturing. Expect May to trot out one or two more issues facing the young in the coming days. All predictable stuff. Remember that just because a politician says something, it doesn't mean it leads to positive actions that the words imply.

Edited by canbuywontbuy

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Slash housing benefit and build council houses. Not really that difficult.

And make it easier for private homes to be built and only give council houses in the South East to people who work there (everyone else can move, if we were still in the EU I would suggest buying ghost estates in Spain for them).

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Slash housing benefit and build council houses. Not really that difficult.

Please explain the economics behind that statement? How do you build council houses when you cut benefits which fund the building and repairs?

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I remember in 2010 when newly minted housing minister Grant Shapps was touring the TV and radio studios on behalf of his boss David Cameron, saying exactly the same thing as Theresa May is saying now. His proposal was that house prices should rise less quickly than wages for an extended period so that wages could catch up. Of course, they didn't actually put any policies in place that would help that happen (quite the reverse), so here we are now.

Bill Clinton was the master of going around talking to the struggling poor about how he felt their pain and then doing nothing about it. 25 years of that behaviour from ruling classes around the world has created the level of cynicism we now have in electorates across the world.

Yup, I never managed to get Shappsy to state how long he thought a tripling of prices would take to unwind at 2 or 3% wage increases per annum, funny that..

And of course more people than ever before are dependent on the chancellor for their pay rises, so there is even less apparent reason for inaction.

Yup, talk is cheap.

By the time the Tory leadership is replaced, we might have QE3, rates cut again and maybe other stuff like FLS extension and gawd knows what Osbo can dream up in the meantime.

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Please explain the economics behind that statement? How do you build council houses when you cut benefits which fund the building and repairs?

Quite simply stop paying HB to private landlords and build council houses with the money saved. Seeing as the housing benefit bill is some 25 billion a year they might just be able to squeeze some maintenance in as well.

Surely this would save money long term?

Edited by doomed

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I'm sure May has our best interests at heart, especially when her husband is a major shareholder in G4S and she has been privatising prisons and police.
She will stick by her word and solve the housing crisis. Of course :lol::lol:

If you believe her you'll believe anything!

Edited by Assume The Opposite

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I'm sure May has our best interests at heart, especially when her husband is a major shareholder in G4S and she has been privatising prisons and police.

She will stick by her word and solve the housing crisis. Of course :lol::lol:

If you believe her you'll believe anything!

And the choice is?

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I'm afraid, all I can see there is "stating the bleeding obvious".

What I'd like to hear are her policies to deal with those observations.

Well, she's identified the primary culprit. So logically she'll be wanting to ease us away from it.

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