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Gemma Rose

BoE should aim to freeze house prices: IPPR paper

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" The discussion paper, On Borrowed Time: Finance and the UK’s current account deficit, calls on the Bank of England’s financial policy committee, with the Treasury’s backing, to insist on higher initial deposits and stricter ceilings on loan to income ratios. An increase in house building would also help to bring down average prices, the IPPR said."

https://www.theguardian.com/business/2018/jul/10/bank-of-england-should-aim-to-freeze-house-prices-for-five-years-report

"Under the IPPR’s proposals, house prices would be allowed to increase “only after expectations of constantly rising house prices have been ‘reset’”.

https://www.independent.co.uk/news/business/news/uk-house-prices-latest-freeze-financial-crisis-bank-of-england-ippr-a8439151.html

 

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They should have brought out more regulation and not have made money so cheap after the GFC.

Now we see high-profile government figures making money out of property. Bankers are making money out of property (until it goes belly up again).

So good luck getting them to change their mindset.

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7 minutes ago, whome_yesyou said:

hey should have brought out more regulation

No

7 minutes ago, whome_yesyou said:

not have made money so cheap after the GFC.

Yes

 

7 minutes ago, whome_yesyou said:

So good luck getting them to change their mindset.

Agreed

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Sentiment is laudable but the idea that you can regulate for zero hpi without that having knock-on effects into the wider economy is somewhat naive. The UK housing market is the UK economy. Plus, a 10% real terms correction is nothing when prices in London and the South East have very nearly doubled since 2010.

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So now they're discussing openly and directly manipulating house prices?  Central banks have no business interfering in markets yet they've been directly propping up asset prices all around the World, to actually openly talk about fixing house prices shows how rigged the economy is.

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RICS suggested similar thing last year or so - they suggested BOE should target cap of 5% pa HPI so this isn't the first time manipulation of the market has been openly discussed.  Everyone knows the market is manipulated to support high prices but I guess they forget that HMG and BOE maintain a lie that it isn't.

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  • 301 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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