The 5 Year House Price Freeze Idea – How Stupid Is That?Make Text Bigger
A “think tank” called The Institute for Public Policy Research has said that Britain needed to “reset” the way it thinks about rising prices to break the “cycle of ever-rising house prices that drives property speculation”, which it argues crowds out investment in the “real economy”.
How stupid is that?
I can only assume the think tank consisted of primary school children who haven’t even heard of economics.
Common sense dictates that something is only ever worth what somebody else is prepared to pay for it.
Let’s say I own a property which is worth £300,000 today. If I don’t maintain it and allow it to fall into a complete state of disrepair, how can I reasonably expect somebody to pay that amount of money for it in a few years time?
Looking at it another way, can a person be compelled to sell a property in years to come for what they paid for it today, regardless of condition demand?
Of course not!
In my opinion, the reality is that a house price freeze would kill the UK housing market stone dead. New mortgage lending would dry up, estate agents, conveyancers and mortgage brokers would all fold and unemployment figures would sky-rocket.
I could rant about this all day long, but instead I will leave it to you to post your own comments.
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