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Labour's Obsession With High House Prices

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The country is increasingly being divided by property haves and have nots. Families are being forced to live in inadequate overpriced rental accomodation whilse holiday homes and investment properties lie empty. Our international competetiveness is being rapidly eroded by the unrealisitc property prices. What is Labour doing about it? This:

Homeowners may be able to insure themselves against a fall in the value of their home under proposals announced by Alistair Darling.

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The country is increasingly being divided by property haves and have nots. Families are being forced to live in inadequate overpriced rental accomodation whilse holiday homes and investment properties lie empty. Our international competetiveness is being rapidly eroded by the unrealisitc property prices. What is Labour doing about it? This:

Homeowners may be able to insure themselves against a fall in the value of their home under proposals announced by Alistair Darling.

As long as the value of their homes go up, the sheeple will still vote for them.

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I can see the underwriters trying to calculate the premiums.

To make money and pay insurance premium tax I reckon About £1.40 in premiums would cover a £1 fall in value.

It could only make sense in Nulabor's miracle economy. How can you insure against a dead certainty?

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The country is increasingly being divided by property haves and have nots. Families are being forced to live in inadequate overpriced rental accomodation whilse holiday homes and investment properties lie empty. Our international competetiveness is being rapidly eroded by the unrealisitc property prices. What is Labour doing about it? This:

Homeowners may be able to insure themselves against a fall in the value of their home under proposals announced by Alistair Darling.

Hmmm... how's this going to work in practice? It just seems riddled with problems. No two houses are the same, so a drop in price for one may be a smaller or larger drop in price for another. It's just rubbish. Anyway, house prices a matter of opinion... how do you insure against an opinion?

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Laughable.

But actually very, very, depressing as it depends on the populace remaining financially illiterate which is how we all got into this mess in the first place. Only a complete idiot could believe that this could work.

The people who devised this are not idiots which only leaves the possibility that they are dishonest to their core.

Put it in the box labelled 'PR exercises so that we can say we are trying to help'

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Such insurance would pay out if the value of a home declined by more than the value of equivalent property in the indices

More smoke and mirrors. The insurance would pay out if your house declined faster than your neighbours?

If thats correct it looks like another money making scam by our unproductive elite :angry:

Its a bit like the price protection guarantees being made by the developers at the moment "your house price protected" if you overpay me 10% I might pay it back in 3 years - only those stupid enough to buy a new house will be sucked by this one.

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The country is increasingly being divided by property haves and have nots. Families are being forced to live in inadequate overpriced rental accomodation whilse holiday homes and investment properties lie empty. Our international competetiveness is being rapidly eroded by the unrealisitc property prices. What is Labour doing about it? This:

Homeowners may be able to insure themselves against a fall in the value of their home under proposals announced by Alistair Darling.

Seriously worried abut HPC then! <_<

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More a case of Brown's obsessio0n with house prices. His entire career and legacy stands or falls on the housing market.

Remember what he promised in his innaugral budget in 1997? I do.

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This means a crash is a dead cert!

In fact this idea is not even trying to prop prices up. This scheme will no doubt be introduced after the crash is over, for the following reasons.

1) As already said, why would any insurer offer insurance against a dead certainty.

2) There is no hunger at the moment in the city for loss making schemes related to property.

3) There are not local indexes yet (And by god if we have managed to let developers rig land reg prices this time, what impact will they have on a local market indexes.)

4) And finally, once the crash has happened, and prices start jumping again (6-8 years from now), the market will again become a one way upward bet, by which time I am sure insurers would be delighted to relieve you of your premium. But do mind, the premiums will go up as the value of your home goes up, so at the time you can no longer afford the premium and cancel it, that will be when the next crash happens.

Edited by mikelivingstone

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They have killed the economy with high house prices and now they are proposing to pickle it. As people have pointed out however no insurer would touch such a risk with a barge pole. Personally I think that manipulation of information has become so ingrained in Labour habits that we will see a lot of strange ideas being being floated as the bubble collapses.

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The country is increasingly being divided by property haves and have nots. Families are being forced to live in inadequate overpriced rental accomodation whilse holiday homes and investment properties lie empty. Our international competetiveness is being rapidly eroded by the unrealisitc property prices. What is Labour doing about it?

Nationalising all empty properties?

Sorry, I've just woken up from a beautiful dream where Nye Bevan came back to make it all better again. It was simple really, he travelled back in time to 1983 and threw a bucket of water over Margaret Thatcher. Her flying monkeys circled round the debating chamber, in terror chucking shite at each other until they all dropped dead from exhaustion.

Edited by boynamedsue

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Nationalising all empty properties?

Sorry, I've just woken up from a beautiful dream where Nye Bevan came back to make it all better again. It was simple really, he travelled back in time to 1983 and threw a bucket of water over Margaret Thatcher. Her flying monkeys circled round the debating chamber, in terror chucking shite at each other until they all dropped dead from exhaustion.

What a lovely dream :)

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Nationalising all empty properties?

Sorry, I've just woken up from a beautiful dream where Nye Bevan came back to make it all better again. It was simple really, he travelled back in time to 1983 and threw a bucket of water over Margaret Thatcher. Her flying monkeys circled round the debating chamber, in terror chucking shite at each other until they all dropped dead from exhaustion.

The evidence suggests that Labour actively encourage the under use of property. Empty homes prop up property prices and generate council tax income without putting any load on council services.

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The evidence suggests that Labour actively encourage the under use of property. Empty homes prop up property prices and generate council tax income without putting any load on council services.

Labour and Tories both, the problem is that today neither of them have any goal apart from advancing their personal careers. It's ridiculous to think that either Cameron or Brown feel they have a plan for Britain (apart from watching everyone all the time via a chip in their oystercard). All of these clowns trace their ideological roots back to Thatcher, so the disaster this country has become can be laid squarely on her doorstep.

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What a laughable idea - ascertaining the relative movement in value of one property to another is totally subjective, both the original purchase price (which in the case of new-builds are often fraudulent) and subsequent valuations. It is a massive opportunity for disagreements with insurers and fraud. Overall a non-starter.

Options based on house price indices are far more neutral and does not require government intervention to create a market - de facto futures contracts can already bought and sold through spread betting firms. If there was real demand, it would quickly expand so that there were more accurate indices for your requirements e.g. 3-bed semi index or 2-bed ex-council flat index.

To cap it all, who is going to insure you against a fall in house prices at the moment?

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Labour and Tories both, the problem is that today neither of them have any goal apart from advancing their personal careers. It's ridiculous to think that either Cameron or Brown feel they have a plan for Britain (apart from watching everyone all the time via a chip in their oystercard). All of these clowns trace their ideological roots back to Thatcher, so the disaster this country has become can be laid squarely on her doorstep.

I agree with this. It is difficult to know how to vote these days other than with one's feet.

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The country is increasingly being divided by property haves and have nots. Families are being forced to live in inadequate overpriced rental accomodation whilse holiday homes and investment properties lie empty. Our international competetiveness is being rapidly eroded by the unrealisitc property prices. What is Labour doing about it? This:

Homeowners may be able to insure themselves against a fall in the value of their home under proposals announced by Alistair Darling.

I think you can already hedge against falls in house prices using the Cantor index (Haliwide data?) by spreadbetting....

Any new 'insurance policies' for the same would be offered by firms who would set up the spread bets for you (and take a large slice of your money).

The only reason why I haven't seriously considered 'shorting' property is the data...simply can't trust Halifax data (or any other really as its not a liquid market).

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I agree with this. It is difficult to know how to vote these days other than with one's feet.

I left for a year in 2004 and I'm never coming back.

Ultimate destination, France a country with a real economy and at least the minimum of social solidarity needed for a nation to survive.

Remember how the politicians used to tell us that France and Germany were failed states, that the future was in the neo-liberal London/Madrid/Rome axis? What a joke that's proving to be.

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Beat me to it on the racehorse example there. You might imagine that the insurance would only be paid out when you sold your house, but the Guardian dosen't even say that. Imagine if you got a big fat cheque through the door if local prices fell, even if you had no intention of selling; and looking again at the story, that seems to be exactly what they're proposing:

Hours after the Budget one insurance company, MarketGuard, announced that in two months' time it would launch the first interest-rate insurance product that covered individuals against increases in their mortgage payments as a result of rises in the Bank of England base rate.

I'm no economist, but this looks completely insane: if prices go up ,you win; if prices go down, you still win. That just seems to be creating money out of nothing. Lunacy.

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I'm no economist, but this looks completely insane: if prices go up ,you win; if prices go down, you still win. That just seems to be creating money out of nothing. Lunacy.

"If fortune calls, offer him a seat."

-Yiddish Proverb

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Beat me to it on the racehorse example there. You might imagine that the insurance would only be paid out when you sold your house, but the Guardian dosen't even say that. Imagine if you got a big fat cheque through the door if local prices fell, even if you had no intention of selling; and looking again at the story, that seems to be exactly what they're proposing:

I'm no economist, but this looks completely insane: if prices go up ,you win; if prices go down, you still win. That just seems to be creating money out of nothing. Lunacy.

... not really insane. From the article: "One industry expert who is consulting with the government on the proposals..."

So there's money in it for someone.

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Homeowners may be able to insure themselves against a fall in the value of their home under proposals announced by Alistair Darling.

This is the second time recently that I have noticed Mr Darling use the technique of anchoring . Both times, the effect will be to draw the population's attention to a problem the Government is still officially denying. I don't know if he knows what he's doing or not, but in the last week or so, he has effectively highlighted the fact that a return to the inflation levels of the early 90's, and a HPC are possibilities.

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  • 292 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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