Posted by: John | March 5, 2009

`Offers in excess of`

There’s going to be real anger out there – house prices have dropped quite considerably and there are many in negative equity. The blame must be put at Brown’s door – this isn’t global. Many bought through simply having enough of waiting or because at the height of the boom that’s when a relationship broke down etc.

If you want to know what’s happening in your own area there are two sites worth consulting:

http://www.rightmove.co.uk – this has shown me that house prices are at probably 2003 levels. http://www.zoopla.co.uk shows recent transactions of numbered and addressed properties with real prices. I’m not saying that I’d like the kind of boom house prices that we’ve had but Liberal Democrats must consider two facts:

1. We had NOTHING to do with this boom – we weren’t in power nor had any influence over what happened. Don’t beat ourselves up about it.

2. Just consider how someone who has really lost out in the new Labour economy. Perhaps they were renting and decided they’d had enough of putting off the dream and thought in 2007 `If i don’t get on the escalator now I never will`. They may have lost their job or had to get one with a lower income. If they’ve lost their job they may have had to sell at a loss and start renting again.

I note that the lowest priced property in my area says `potential for a rental income of £6,600`.  That’s nice – lost your home – don’t worry start renting at the bottom of the market!

REMEMBER – we don’t have to apologise for anything – we have some excellent Councils and can PROVE we can govern excellently. We also have some solutions – the mantra should be `we had nothing to do with this and it’s best to have people who have fresh ideas and solutions and have had nothing to do with it to get out of it`.

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Responses

  1. OK, so what would we have done to stop the boom had we been in power then? What did we say to criticise the policies that led to the boom?

    One of the ways of tempering house price booms is to have property taxes to make housing a less valuable asset to hold if you don’t actually need it to live in. We had the policy of abolishing the major property tax. Apart from that, I cannot think of anything.

    The problem is that the sort of policies which would effectively stop boom-and-bust are very unpopular during the boom years. And they require strong argument during the bust years. Anything effective we might have proposed would have been met by screams of “You’re evil people who are opposed to home ownership”. Remember, we live in a country where most people are too economically illiterate to understand why “we’re going to make it easier to borrow more money so it becomes easier to buy a house” is nonsense.

  2. Another Liberal Democrat beating himself up – the main point is that the analysis was being done by Vince Cable himself from 2003. We would change the system (devolution at least provides an answer as it would geographically spread wealth).

    We need to look to our Councils as examples of the way to do things.


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