M
Malcolm Shykles
Raising interest rates may not be the answer to containing house
prices.
One of the major reasons; is that the present boom in house prices
started with Brown's £6 billion-a-year raid on pension funds in 1997.
The destruction of this pillar of long term savings has resulted in
heavy property investment and a corresponding fall in the value of
equities.
Some parents are actually selling stocks to fund their children into
the property market.
The knock on effect is devastating for young and old alike. Young
couples cannot afford houses and pensioners' funds have lost
considerable value.
Both have been forced into relative poverty. We are now in a crazy
situation. Perhaps heading for Japanese disaster similar to that of
1990 when property values reached around five times their realistic
levels.
When the Stock Market gets more attractive (and this maybe brought
about by a change in government), that I think, will be the danger
time for house values.
Malcolm Shykles
prices.
One of the major reasons; is that the present boom in house prices
started with Brown's £6 billion-a-year raid on pension funds in 1997.
The destruction of this pillar of long term savings has resulted in
heavy property investment and a corresponding fall in the value of
equities.
Some parents are actually selling stocks to fund their children into
the property market.
The knock on effect is devastating for young and old alike. Young
couples cannot afford houses and pensioners' funds have lost
considerable value.
Both have been forced into relative poverty. We are now in a crazy
situation. Perhaps heading for Japanese disaster similar to that of
1990 when property values reached around five times their realistic
levels.
When the Stock Market gets more attractive (and this maybe brought
about by a change in government), that I think, will be the danger
time for house values.
Malcolm Shykles