Monday, August 9, 2010

Why are Britons so obsessed with property?

UK property market's long-term prospects remain strong

''Britiain's property market - both residential and commercial - may be in for a bumpy few years but the long-term prospects are positive.''

Posted by hpwatcher @ 08:25 AM (1314 views)
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4 thoughts on “Why are Britons so obsessed with property?

  • “The answer lies with the near-zero cost of money being stubbornly maintained by the Bank of England’s Monetary Policy Committee. The official Bank rate is just 0.5pc and has been since March 2009, keeping many people afloat artificially.”

    Yes, the original architects of the credit boom, still doing their best to keep the irresponsible solvent and the prudent shat upon.

    This article does lean on ‘property experts’ opinions to justify its premise rather than impartial economics commentators.

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  • mark wadsworth says:

    Well, the commentary on commercial property is most revealing. They mention that supply increases to match increased demand so prices have not even kept up with inflation. What the article doesn’t mention is Business Rates which is Land Value Tax by another name, which has helped keep prices stable. Now, if only they’d do that for residential…

    But the fundamental idea that property price rises can sustain the economy is utter hokum on every level, of course.

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  • @Mark Wadsworth

    Absolutely utter hokum , I find this a truly repugnant article .

    If house prices were halved then morgages would be paid off in half the time and the financial services industry would only get 1/4 of the interest tribute they currently demand from house buyers .

    Quote “So the big question everyone is asking is whether recent price rises can be sustained to help us climb out of the recent slump or do we face several more years of depressed values and stagnant property markets?”

    Quote “For most people, it is simple bricks and mortar that matter most – the value of your home. “

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  • MarkW,

    Yes I found the comments on commercial property interesting too. Basically they are admitting that the planning system is skewed: you can easily get permission to build a new office block or a retail park, but your chances of building new housing are minimal.

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