Wednesday, July 30, 2014

UK Government sold their citizens down the river over housing

Hong Kong Popping Housing Bubbles London Can’t Handle

While such actions may seem contradictory to the cities’ stated free-market principles, “affordable housing is part of the legitimacy of any government, and government has a role to play in intervening in the market in periods where there are extreme circumstances,” said Michael Klibaner, who heads Greater China research at real estate firm Jones Lang LaSalle Inc. in Hong Kong.

Posted by hpwatcher @ 08:57 AM (3361 views)
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4 thoughts on “UK Government sold their citizens down the river over housing

  • A great example of how UK government politicians, due to their personal greed and avarice, sold their citizens completely down the river by failing to control the housing bubble.

    Savers, and now the tax payer will likely pick up the bill.

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  • mountain goat says:

    Every nimby who objected to new housing in the field next door bears some responsibility too.

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  • Funny how the article just doesn’t face up to the fact that these countries aren’t rabid free-marketeers. They’re highly managed economies that encourage entrepreneurship. In 23 Things They Don’t Tell You About Capitalism, Ha-Joon Chang continually cites Singapore as an example of a country that defies Neoliberal logic by picking winners, launching SOEs, limiting permits, but neoliberals and libertarians insist owe its success to free-market principles, simply because to do otherwise would mean admitting defeat.

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  • House Prices are MASSIVELY overinflated against all historic measures of affordability, and unfortunately, our society has come down to the ‘haves’ and the ‘have nots’

    [People on the ladder dont want to hear this, so I’ll expect the usual niggles and insults.]

    But the facts are there for all to see.

    The averagely priced house, since about 1952, through to recently, has been bought for a median of no more than 3.5x individual average salary, with an average mortgage rate of 7% interest, and an average downpayment of 10%.

    Thats been the definition of affordability for half a century.

    Yet the national average wage earner, today, who, according to the ONS is on £26k, who buys the averagely priced house, at £250k, will be paying 10x his/her individual salary.

    And the cost of living is higher today as well. If you are priced out you should ‘refuse to buy’

    You could HALVE house prices overnight and they would still be massively overinflated against all historic measures of affordability.

    Peaks and troughs, and variations, in locations, and prices, have always existed, thats why there is an average.
    So individual examples, are not as accurate as taking the average mean.

    And the individual national average wage has always been able to buy the averagely priced house, all throughout the 1950’s, 1960’s, 1970’s, 1980’s and 1990’s.
    For between 2.5x – 3.5x individual income.

    Yet today its a staggering 10x individual income

    The 8 million plus rentiers, priced out of a house and a life, should not be voting Lib/Lab/Con.

    Protest Vote.

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