Jump to content
House Price Crash Forum
Sign in to follow this  
Telometer

Darling: Keep Prices Up By Stopping The Building Of New Homes

Recommended Posts

These 3m new homes by 2020... stop them! Keep prices up by demolishing properties, not building them.

Interesting that for HM Government high prices are a disaster on the way up, requiring affordable housing etc. etc.; but low prices are a disaster on the way down, requiring incentives to kick start the market.

Share this post


Link to post
Share on other sites
These 3m new homes by 2020... stop them! Keep prices up by demolishing properties, not building them.

Interesting that for HM Government high prices are a disaster on the way up, requiring affordable housing etc. etc.; but low prices are a disaster on the way down, requiring incentives to kick start the market.

No, you mean HIGH prices are a disaster on the way down..

The prices havent been "low" for years. - If they were low and then went down that would be a disaster!

THe common problem is that HIGH PRICES are a disaster.... whether they are going up or returning to normal

Share this post


Link to post
Share on other sites
high house prices makes your work-earnings devalue.

you have to seriously question WHY your working 40+ hours.

The other thing that folk forget about is that inflation shrinks the relative size of your mortgage repayments.

I remember guys I worked with in the late 70's who were nearing the end of their mortgages. The original loan was only £4000 and the payments were next to nothing. At the time I was borrowing £2000 just to buy a car!

I realise that higher inflation has many downsides but it certainly helped those guys meet their mortgage payments.

Share this post


Link to post
Share on other sites

This is exactly as I predicted...

As house prices fall, they stop building houses and the Government lets housing completions fall to their lowest levels again, allowing to build up pent up demand...

Complete market manipulation and certainly not in the countries best interests...

Obviously not the VIs and the governments though...

Government should be giving incentives to complete 'decent' houses...not allowing them to pack up tools so they can charge 30 years work for 1 bed 25 storey apartment...

Share this post


Link to post
Share on other sites
This is exactly as I predicted...

As house prices fall, they stop building houses and the Government lets housing completions fall to their lowest levels again, allowing to build up pent up demand...

Complete market manipulation and certainly not in the countries best interests...

Obviously not the VIs and the governments though...

Government should be giving incentives to complete 'decent' houses...not allowing them to pack up tools so they can charge 30 years work for 1 bed 25 storey apartment...

Um its market manipulation if the government give those incentives you're suggesting.

Leave the market be, whatever pain there is between here and a better equilibrium is worth paying.

[edit: especially since I dont own a house :P]

Edited by Fraccy

Share this post


Link to post
Share on other sites
This is exactly as I predicted...

As house prices fall, they stop building houses and the Government lets housing completions fall to their lowest levels again, allowing to build up pent up demand...

Complete market manipulation and certainly not in the countries best interests...

Obviously not the VIs and the governments though...

Government should be giving incentives to complete 'decent' houses...not allowing them to pack up tools so they can charge 30 years work for 1 bed 25 storey apartment...

A govt focusing on short policies and objectives NEVER!!!!

Share this post


Link to post
Share on other sites
The other thing that folk forget about is that inflation shrinks the relative size of your mortgage repayments.

I remember guys I worked with in the late 70's who were nearing the end of their mortgages. The original loan was only £4000 and the payments were next to nothing. At the time I was borrowing £2000 just to buy a car!

I realise that higher inflation has many downsides but it certainly helped those guys meet their mortgage payments.

wrong though/.

only WAGE inflation does that. and theres no wage inflation.

Share this post


Link to post
Share on other sites
That ridiculous myth again. Appealing to it is about as likely to succeed as writing a letter to Santa.

You bar steward what about the kids googling for Santa and you go and put that.

Kids Santa exists.

Share this post


Link to post
Share on other sites

Well Particle Man - you come and find me a bloody house in Aberdeen then you Donkey...

Surely if we had oversupply then there wouldnt be house price increases like we have seen as everyone and their dog would have one...

housing supply should be above demand to allow surplus requirements.

i would conclude that supply is far below demand hence price increasing no matter what your arguements...

BTL buying because they can rent to the sucker that should have bought..

My main arguement is that the population size is increasing over time, therefore if you dont build and houses of course demand increases you numpty.

Share this post


Link to post
Share on other sites
These 3m new homes by 2020... stop them! Keep prices up by demolishing properties, not building them.

Interesting that for HM Government high prices are a disaster on the way up, requiring affordable housing etc. etc.; but low prices are a disaster on the way down, requiring incentives to kick start the market.

Fetch me my rifle.

Share this post


Link to post
Share on other sites
Surely if we had oversupply then there wouldnt be house price increases like we have seen as everyone and their dog would have one...

Don't feel too embarrassed. You and evidently thousands (if not millions) of others have swallowed this equine excretia and now we're witnessing the inevitable fruit of the tree so fertilised (and lo, it is most overburdened).

(price has increased through gearing - parties who do not transact are neither supply, nor demand)

Share this post


Link to post
Share on other sites
wrong though/.

only WAGE inflation does that. and theres no wage inflation.

I was refering to then (the 70's) not now.

There may be no wage inflation now but there will be....unless this is the point where the UK slips down the league table and ends up a Third World economy.

Wage inflation normally follows price inflation but maybe it's different this time!

Share this post


Link to post
Share on other sites
I was refering to then (the 70's) not now.

There may be no wage inflation now but there will be....unless this is the point where the UK slips down the league table and ends up a Third World economy.

Wage inflation normally follows price inflation but maybe it's different this time!

there is no scope for wage inflation without a devaluation of the £

plus in the 70s we exported goods. we could put prices up.

any inflation now will have to be shaved off your spending power.

your 35% gas bill rise will come out of your current wages.

thats whats going to hurt,. this is real inflation, not an index linked general upwards trend.

any interest rate rises will also need to be taken on the chin.

top this with falling employment, belts will have to be tightened.

your comments regarding thrid world - this is what happens when you mess with the economy for political gain.

like my sig.

Share this post


Link to post
Share on other sites
there is no scope for wage inflation without a devaluation of the £

plus in the 70s we exported goods. we could put prices up.

any inflation now will have to be shaved off your spending power.

your 35% gas bill rise will come out of your current wages.

thats whats going to hurt,. this is real inflation, not an index linked general upwards trend.

any interest rate rises will also need to be taken on the chin.

top this with falling employment, belts will have to be tightened.

your comments regarding thrid world - this is what happens when you mess with the economy for political gain.

like my sig.

Sounds like the quote from the cynics dictionary,

Ie inflation the way you wages rise by X% .... and the cost of every thing increases by X%+3

Share this post


Link to post
Share on other sites
That ridiculous myth again. Appealing to it is about as likely to succeed as writing a letter to Santa.

Have you ever seen Santa? That's what my son asked me the other day, lying to a 7 year old, even if it's a "good lie" is still no fun.

He too believes there's pent up demand. I put him straight on that and said a 7 year old can't get a mortgage any more, he should have arranged one last year when he was 6.

Share this post


Link to post
Share on other sites
Wage inflation normally follows price inflation but maybe it's different this time!

Wage earners lack the leverage to demand higher wages, it's too easy for employers to relocate or outsource.

The flaw in the plan being that, having made all their expensive first world employees redundant and replaced them with poorly paid chinamen there is no one left to buy the actual products that sustain the business.

Share this post


Link to post
Share on other sites
This is exactly as I predicted...

As house prices fall, they stop building houses and the Government lets housing completions fall to their lowest levels again, allowing to build up pent up demand...

Not saying your wrong but with all them builders out of work and the manufacturing jobs related to building supplies then won't this create 3m unemployeed people and would that not in itself keep prices going down.

During the last recession Councils went on a spending spree when they could get tradesmen for half the normal price so they would need to also include this as part of the plan if only they can borrow the money to spend or get it from tax payers

Share this post


Link to post
Share on other sites
Wage earners lack the leverage to demand higher wages, it's too easy for employers to relocate or outsource.

Or use the cheap immigrant labour that has been allowed to flood the country.

Time we asked our MP's who's country is it anyway.

Share this post


Link to post
Share on other sites
These 3m new homes by 2020... stop them! Keep prices up by demolishing properties, not building them.

Interesting that for HM Government high prices are a disaster on the way up, requiring affordable housing etc. etc.; but low prices are a disaster on the way down, requiring incentives to kick start the market.

HPI-MEW-BTL is the only engine of growth left to Brown and his "government." The perpetual economic motion Brown thought HPI would bring has broken down and they are trying to get it started again by artificially spiking demand (dropping stamp duty) and reducing supply (cancelling the 30m homes by 2011 etc.). They have not learned the lesson yet: you cannot beat the market.

HPC=the end of Brown's career.

Share this post


Link to post
Share on other sites
Surely if we had oversupply then there wouldnt be house price increases like we have seen as everyone and their dog would have one...

It didn't work that way in Ireland, Spain or USA which all had massive over building.

Share this post


Link to post
Share on other sites
Guest Shedfish
Darling: Keep Prices Up By Stopping The Building Of New Homes

puzzled by this thread - is this a quote, a suggestion, any link available?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 395 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.