Friday, May 31, 2013

So high houses are bad for the economy

High houseprices holding back recovery

so the government is effectively holding back recovery by propping up the housing bubble..who would have though of that?

Posted by taffee @ 04:31 PM (1856 views)
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7 thoughts on “So high houses are bad for the economy

  • They’re starting to catch up, aren’t they?

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  • With thanks to Tired of Waiting (on the forum) for the following graphic. Note how Japan (despite 20 years of deflation) still offers it’s citizen’s more space, on average, than Britain (the supposedly prosperous wonderland) despite far less area to develop:

    Density

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  • I think a lot of people are catching up. The chancellors new scheme has been generally vilified in many quarters and even though many home owners are living snugly in their properties and many expecting rises, very, very few would argue against properties being too high. In all the comment sections of the newspapers, 95% of people are saying that prices are to high and in London now even people on the property ladder can’t move up, because the next rungs up are too expensive.
    In the posher areas the prices are all being pushed up by foriegn money, and in order to move up the ladder people are having to move out from where they live. So homeowners are effected as well. Its only those that are trading down that are benefitting.
    Most of the london boom is down to foriegn money which has increased in pace since Cyprus bank deposits got confiscated. it will be very interesting when this trend eventually reverses, which it will, as these are asset purchases not home purchases.

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  • Can anyone explain the above figure for Denmark? Small country, dense population, lots of “green” rules – and yet they have the biggest new-builds in Europe?

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  • mark wadsworth says:

    Dill, excellent graphic.

    Drewster, yes, you can.

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  • righttoleech says:

    The developers will be going hell for leather to catch up with Hong Kong

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  • stillthinking says:

    It’s not just housing. Holding up asset prices stops business. Who wants to pay to take over the factory when its 50% overvalued? Not letting the market clear is never going to be good.

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