The 5 Year House Price Freeze Idea – How Stupid Is That?

The 5 Year House Price Freeze Idea – How Stupid Is That?

9:58 AM, 12th July 2018, About 6 years ago 12

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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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Comments

Anne Nixon

8:55 AM, 14th July 2018, About 6 years ago

. . .and for the huge areas of the country that have seen virtually no growth in house prices since 2008, what happens there then?

James Barnes

9:17 AM, 16th July 2018, About 6 years ago

Reply to the comment left by Mark Alexander at 13/07/2018 - 10:13
I doubt property or land will be capped o frozen but there's long been talk of reforming planning legislation to remove hope value attached to land sold to be developed as housing.
If this actually happens there may well be a drop in the price of new builds, how much that would affect general market prices is anybody's guess.

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