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OpenDemocracy - how to "fix the broken land economy"

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https://www.opendemocracy.net/neweconomics/solve-housing-crisis-need-fix-broken-land-economy/

A well-written article, giving some insightful history, providing some rationale behind current house prices whilst explaining the economic and social disadvantages of such.

Goes on to explain how it could be fixed. Exactly the sort of report that the government should be reading and acting on. 

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The long term-aim must be to return to a society where houses are viewed as somewhere to live, not as vehicles for accumulating wealth. This can’t happen overnight, and it won’t be easy. The task involves taking on the unholy alliance of private developers, banks and – most difficult of all – ordinary homeowners, many of whom now view ever rising house prices as normal and just.

Amen to that.

Wonder if anyone outside our learned brethren will take any notice? Will MSM pick up on it?

We can live in hope. 

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Although this is preaching to the choir for us, it cant be understood as purely a land asset issue as there is also low interest rates and population growth to throw in the mix too.

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36 minutes ago, Bland Unsight said:

Yes and yes. 

So do they think it's a bubble? Or in addition do they think there's been a permanent shift in underlying property values even if the politico economic background want so bubblicious and into hoarding?

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As usual, this article while well meaning, is ideologically driven and develops no new insights. Does the book cited above address why other countries which don't suffer from the same historical policy mix that the UK has done, still have the same HPI problem (in some cases worse) that we observe here? 

We'd all like house prices to be lower and to not have an economy based on asset inflation, but actual solutions are very unlikely to come from these people IMO.

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Houses fulfil three purposes to most people:

Home                   Somewhere for them and their family to live.

Investment          Safe haven for funds and for them and their families future.

Asset                   Something to borrow against if required.

When these are in balance everything is OK, when any one of these becomes more or less important to people things go wrong.

At present to much emphasis is on Investment and Asset too little on Home.

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  • 293 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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