Monday, October 18, 2010
BJ – “If the housing market tanks, then the financial system tanks too”
Boris Johnson today urged the coalition to leave London's rising house prices alone or risk worsening the housing crisis. He warned the Government that proposals to deliberately "flatten" the market could lead to a sharp spike in prices as the economy improved. The Mayor said that the move would be "risky" in the short term as it would damage the confidence needed for economic recovery. And he predicted that asking the middle classes to "wean" themselves off house-price inflation was "unachievable" in the longer term.