hp72 Posted August 24, 2017 Share Posted August 24, 2017 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. Quote Link to comment Share on other sites More sharing options...
honkydonkey Posted August 24, 2017 Share Posted August 24, 2017 Yes, very much preaching to the choir here though. It just seems like such a moronic system, and because of the way politics works, we're stuck with it. Quote Link to comment Share on other sites More sharing options...
Smiley George Posted August 24, 2017 Share Posted August 24, 2017 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. Quote Link to comment Share on other sites More sharing options...
nightowl Posted August 24, 2017 Share Posted August 24, 2017 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. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 24, 2017 Share Posted August 24, 2017 The article is essential an overview of the argument in the book linked to at the end of the article, Rethinking the Economics of Land and Housing. I'm reading it at the moment and it is fascinating book. Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 24, 2017 Share Posted August 24, 2017 Do they mention the occupancy ratio or nirp at all? Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 24, 2017 Share Posted August 24, 2017 23 minutes ago, Si1 said: Do they mention the occupancy ratio or nirp at all? Yes and yes. Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 24, 2017 Share Posted August 24, 2017 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? Quote Link to comment Share on other sites More sharing options...
scepticus Posted August 25, 2017 Share Posted August 25, 2017 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. Quote Link to comment Share on other sites More sharing options...
Option5 Posted August 25, 2017 Share Posted August 25, 2017 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. Quote Link to comment Share on other sites More sharing options...
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