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enworb

No Hips = No Crash For The Foreseeable Future

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Quite clearly the government/BOE is trying it's utmost to protect the UK's new found wealth brought about by property prices doubling over a very short time.

Without IR hikes, prices are going to keep slowly rising as long as buyers are falling over themselves to get an apparent bargain, or at least get a foothold onto the ladder while they still can.

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Quite clearly the government/BOE is trying it's utmost to protect the UK's new found wealth brought about by property prices doubling over a very short time.

Without IR hikes, prices are going to keep slowly rising as long as buyers are falling over themselves to get an apparent bargain, or at least get a foothold onto the ladder while they still can.

But there will be IR hikes , prices will fall.

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100% correct. NULabour are tied to high house prices and MEW. The market cannot be beaten and it will collapse but I suspect recession will be the poison and not IR. The slowing US economy and assett bubbles cannot sustain the markets indefinately. The bust always follows a boom. It's never been any different. Just posted this on another thread:

Sounds about right. NuLabour are unpopular in the country as indicated by recent polls. The economy is on a knife edge and without the continuing HPI-MEW recession will follow and Gordon & Co. will be unelectable. The housing market is key to the future of NuLabour and especially Gordon whose entire reputation stands on people's sense of wealth that has come from 175% inflation in house prices since 1997. Take that wealth away and its been almost 10 years of disaster with higher taxes, highest unemployment since 1997, twin deficits, erosion of freedoms (attempted ID card laws), collapsing NHS, rising sleaze (Two Jags, Peerages for donations, sexual scandals etc), disastrous immigration policies with unknown numbers of illegal immigrants and vast numbers of legal immigrants pressuring housing and the declining job market, collapsing manufacturing and retail and on and on.

If people see their house prices and ability to MEW taken away NuLabour are finished.

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Take that wealth away and its been almost 10 years of disaster with higher taxes, highest unemployment since 1997, twin deficits, erosion of freedoms (attempted ID card laws), collapsing NHS, rising sleaze (Two Jags, Peerages for donations, sexual scandals etc), disastrous immigration policies with unknown numbers of illegal immigrants and vast numbers of legal immigrants pressuring housing and the declining job market, collapsing manufacturing and retail and on and on.

If people see their house prices and ability to MEW taken away NuLabour are finished.

I agree with most of what you have said - Labour, and in particular GB, do need the housing bubble to keep growing. They have seen what happened to the Tories when the last one popped. Since the HIPS debacle, it is becoming obvious that they will do anything to keep it afloat. I would not expect any interest rate rises any time soon. Look at the evidence - shared ownership, relaxing credit, interest rates kept low, shelving HIPS.

If you look at it from another standpoint, it would be irresponsible to raise interest rates when the economy is on such a knife edge. If they did and the housing market starts to collapse, all the critics will say "Shouldn't have raised it, bad timing etc." The inevitability of the crash at some future point, and the fact that it is a much needed correction after years of too-fast growth is just not part of popular belief.

Where I disagree with you is the NHS. It is not collapsing - it is massively better than under the Tories. You used to have to wait 2 weeks to even see your GP. The Tories were freezing out the funding in public services, and Labour have done a lot to improve them.

Edited by bearwithaconscience

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on tuesday morning krusty said on R5 (whilst getting excited about hips) that the 'housing market is the corner-stone of the economy'. i nearly wet myself. then i thought about it - she's right!

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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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