Comments on: House prices – falling or not falling? http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Wed, 23 May 2012 13:35:04 +0000 hourly 1 By: Gordon the asset-stripper « the wilted rose http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2474 Gordon the asset-stripper « the wilted rose Wed, 09 Apr 2008 09:54:18 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2474 [...] house prices fell in just one month by 2.5% (John Redwood has a good take on this subject here), which means if they fall by the same amount every month for the next year we will have a 30% [...] [...] house prices fell in just one month by 2.5% (John Redwood has a good take on this subject here), which means if they fall by the same amount every month for the next year we will have a 30% [...]

]]> By: Terry http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2473 Terry Tue, 08 Apr 2008 21:23:03 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2473 About time too. As a small business employer, how can I keep employees happy if they can't afford a property? When I bought, it was a stretch getting a mortgage for over 3 times my salary... but some of the offers of the last few years have just been setting some recent buyers up to fall. And while prices are going up for food, the roof over our heads and utilities... it's hard for us small businesses to raise our prices to keep up. Unsustainable is the only word that could describe the madness of the economy in the UK over the past few years. About time too. As a small business employer, how can I keep employees happy if they can't afford a property? When I bought, it was a stretch getting a mortgage for over 3 times my salary… but some of the offers of the last few years have just been setting some recent buyers up to fall. And while prices are going up for food, the roof over our heads and utilities… it's hard for us small businesses to raise our prices to keep up. Unsustainable is the only word that could describe the madness of the economy in the UK over the past few years.

]]> By: Man in a Shed http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2472 Man in a Shed Tue, 08 Apr 2008 19:55:51 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2472 PS I shoudl have credited the DT Three Line Whip blog with that observation. PS I shoudl have credited the DT Three Line Whip blog with that observation.

]]> By: Man in a Shed http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2471 Man in a Shed Tue, 08 Apr 2008 19:55:14 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2471 Interesting to note an unintended consequence of the last budget changes to CGT will make landlords more willing to sell as the market starts to fall. Interesting to note an unintended consequence of the last budget changes to CGT will make landlords more willing to sell as the market starts to fall.

]]> By: Matthew Reynolds http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2470 Matthew Reynolds Tue, 08 Apr 2008 19:32:24 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2470 In the face of this economic trouble we must move money away from wasteful QUNAGO's & into the wealth creating sectors of the economy . Taxes on income,consumption,capital and profits need to be reduced . VAT is very high & very complex at a time when consumption needs a boost, falling disposable incomes will hit the highstreet where many people work,CGT needs to be cut to 10% & corporate tax needs to be lower so that business investment rises to secure higher job creation while reforming & reducing stamp duty on property will help a weak housing market. To boost disposable income cutting taxes for the least well off will help boost demand in the economy as well as making work pay which could help hold down dole queues if people deem working worth while. By raising the basic personal allowance very sharply by say £4,200 p/a over & above prices you would take millions out of tax induced welfare misery & cut the burden on most tax payers by up to £70 a month. Rising bills & taxes are lethal on top of the credit crunch & ironically it is a Labour government that is supposed to be on the side of the majority that is bringing economic misery on those who can least afford it. Ending the QUANGO state will be good for democracy as councils & MP's ought to decide things and it will help low earners like me at a time of economic distress. In the face of this economic trouble we must move money away from wasteful QUNAGO’s & into the wealth creating sectors of the economy . Taxes on income,consumption,capital and profits need to be reduced . VAT is very high & very complex at a time when consumption needs a boost, falling disposable incomes will hit the highstreet where many people work,CGT needs to be cut to 10% & corporate tax needs to be lower so that business investment rises to secure higher job creation while reforming & reducing stamp duty on property will help a weak housing market. To boost disposable income cutting taxes for the least well off will help boost demand in the economy as well as making work pay which could help hold down dole queues if people deem working worth while. By raising the basic personal allowance very sharply by say £4,200 p/a over & above prices you would take millions out of tax induced welfare misery & cut the burden on most tax payers by up to £70 a month. Rising bills & taxes are lethal on top of the credit crunch & ironically it is a Labour government that is supposed to be on the side of the majority that is bringing economic misery on those who can least afford it. Ending the QUANGO state will be good for democracy as councils & MP’s ought to decide things and it will help low earners like me at a time of economic distress.

]]> By: Matthew Reynolds http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2475 Matthew Reynolds Tue, 08 Apr 2008 19:32:24 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2475 In the face of this economic trouble we must move money away from wasteful QUNAGO's & into the wealth creating sectors of the economy . Taxes on income,consumption,capital and profits need to be reduced . VAT is very high & very complex at a time when consumption needs a boost, falling disposable incomes will hit the highstreet where many people work,CGT needs to be cut to 10% & corporate tax needs to be lower so that business investment rises to secure higher job creation while reforming & reducing stamp duty on property will help a weak housing market. To boost disposable income cutting taxes for the least well off will help boost demand in the economy as well as making work pay which could help hold down dole queues if people deem working worth while. By raising the basic personal allowance very sharply by say £4,200 p/a over & above prices you would take millions out of tax induced welfare misery & cut the burden on most tax payers by up to £70 a month. Rising bills & taxes are lethal on top of the credit crunch & ironically it is a Labour government that is supposed to be on the side of the majority that is bringing economic misery on those who can least afford it. Ending the QUANGO state will be good for democracy as councils & MP's ought to decide things and it will help low earners like me at a time of economic distress. In the face of this economic trouble we must move money away from wasteful QUNAGO’s & into the wealth creating sectors of the economy . Taxes on income,consumption,capital and profits need to be reduced . VAT is very high & very complex at a time when consumption needs a boost, falling disposable incomes will hit the highstreet where many people work,CGT needs to be cut to 10% & corporate tax needs to be lower so that business investment rises to secure higher job creation while reforming & reducing stamp duty on property will help a weak housing market. To boost disposable income cutting taxes for the least well off will help boost demand in the economy as well as making work pay which could help hold down dole queues if people deem working worth while. By raising the basic personal allowance very sharply by say £4,200 p/a over & above prices you would take millions out of tax induced welfare misery & cut the burden on most tax payers by up to £70 a month. Rising bills & taxes are lethal on top of the credit crunch & ironically it is a Labour government that is supposed to be on the side of the majority that is bringing economic misery on those who can least afford it. Ending the QUANGO state will be good for democracy as councils & MP’s ought to decide things and it will help low earners like me at a time of economic distress.

]]> By: Acorn http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2469 Acorn Tue, 08 Apr 2008 17:48:44 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2469 It's not all doom guys, none of this will affect Public Sector employees or Benefit claimants, their purchasing power will increase as prices fall. Can you Imagine Gordon making a statement such as, "... to keep the economy balanced, I will cut back government spending in proportion to the fall in "non-socialised" GDP ...". The non-socialised bit of GDP is the bit the Private Sector spends, not the bit that the government spends - tax and borrowings - or the bits paid for by Benefit claimants (or MPs); about 54% of GDP. Canada or Australia look like nice places to live, what say you. It’s not all doom guys, none of this will affect Public Sector employees or Benefit claimants, their purchasing power will increase as prices fall.

Can you Imagine Gordon making a statement such as, “… to keep the economy balanced, I will cut back government spending in proportion to the fall in “non-socialised” GDP …”.

The non-socialised bit of GDP is the bit the Private Sector spends, not the bit that the government spends – tax and borrowings – or the bits paid for by Benefit claimants (or MPs); about 54% of GDP.

Canada or Australia look like nice places to live, what say you.

]]> By: Donitz http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2468 Donitz Tue, 08 Apr 2008 12:19:17 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2468 A recession is on the way. Deal with it. Property prices for forced sellers will drop 25% from 2007 values and the stock market will fall below 4,000 before the year is out. This recession will last 4 years but won't plummet to the same deaths of 1989 to 1993. Confidence is gone and the domestic consumer who makes such a large impact on our GDP will stop spending abruptly. No doubt many consumers are currently trying to borrow short term finance to fund previous debt as they will no longer be able to add this to their already huge mortgage. Unemployment as a whole will begin to rise significantly next year. Graduate unemployment will start to rise within the next 6 months. It's painful and you won't be able to move house for some time but for the majority life will go on. A recession is on the way.
Deal with it.

Property prices for forced sellers will drop 25% from 2007 values and the stock market will fall below 4,000 before the year is out.

This recession will last 4 years but won’t plummet to the same deaths of 1989 to 1993.

Confidence is gone and the domestic consumer who makes such a large impact on our GDP will stop spending abruptly.

No doubt many consumers are currently trying to borrow short term finance to fund previous debt as they will no longer be able to add this to their already huge mortgage.

Unemployment as a whole will begin to rise significantly next year. Graduate unemployment will start to rise within the next 6 months.

It’s painful and you won’t be able to move house for some time but for the majority life will go on.

]]> By: Letters From A Tory http://johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2467 Letters From A Tory Tue, 08 Apr 2008 10:01:27 +0000 http://www.johnredwoodsdiary.com/2008/04/08/house-prices-falling-or-not-falling/#comment-2467 Reading about the sharp house price fall this morning made for very uncomfortable reading. All of a sudden, predictions of a 'soft landing' look a little optimistic. <a href="http://lettersfromatory.wordpress.com" rel="nofollow">http://lettersfromatory.wordpress.com</a> Reading about the sharp house price fall this morning made for very uncomfortable reading. All of a sudden, predictions of a 'soft landing' look a little optimistic.
http://lettersfromatory.wordpress.com

]]>