Wednesday, September 3, 2008

“Myopic analysis in the media and politicians’ propensity to meddle don’t serve the market, or those who need a home”

Simon Jenkins: No need to panic. Falling house prices are good news.

At last, a glimmer of sanity. Faced with what is said to be the greatest collapse in the housing market of modern times, the government has decided to do virtually nothing. Excellent. Housing policy brings out the idiot in politicians - and journalists. Ministers should not waste public money to make houses cheaper when prices are already falling. The purpose of government policy should be to achieve some market stability, not to drive prices lower by increasing supply. Yet this government is doing just that, in the same way as it drove up prices during the boom by hyping demand. As for the "bringing forward of old money" for social housing, the term "social" simply means the state giving a tiny group of lucky qualifiers what amounts to a one-off lottery win for life.

Posted by drewster @ 01:20 AM (661 views)
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5 thoughts on ““Myopic analysis in the media and politicians’ propensity to meddle don’t serve the market, or those who need a home”

  • Nice cartoon in the Guardian:

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  • very good article!

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  • “The advances that first-time buyers had become used to, of 95 per cent, 100 per cent or even more, against a self-certified declaration of income, are now a thing of the past.

    That such mortgages might have been at least partly responsible for the sky-rocketing house prices of recent years is rarely mentioned. ”

    Rarely mentioned in the mainstream media, perhaps, He needs to spend more time here.

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  • Curious accusation against politicians of talking markets down. With the exception of Darling’s recent interview, all have been ludicrously upbeat.

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  • Jenkins has been pretty consistent over the years – I remember reading an article in about 2004 by him in the Evening Standard where amid all signs of the market starting to go crazy he warned punters to stick to x3 salary and deposit or live to regret it. Of course that advice was ignored by thousands upon thousands….

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