Wednesday, August 14, 2013
Penny continues dropping
A new boom is the last thing Britain needs: Why house price increases will inflict the feel-bad factor on first-time buyers
To the British, the house price index is far more than another dry economic number, it is an emotional thermometer. When values rise, homeowners congratulate themselves on their biggest investment paying dividends. But the truth is this weekâ€™s surveys showing price increases are not good news. For the idea that rising house values (unlike rising costs of other commodities, which simply fuel inflation) are positive requires a certain suspension of disbelief...