Countdown to the Budget

I think you've changed the goal posts a bit. At the end of the day, negative affect can and does affect people, examples I've given are all legitimate reasons. You can disagree to the severity, but you acknowledge they exist.
 
Glaucus said:
Houses prices decline due to a very poor economy, where people lose there job.
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Says who? One could argue that our economy is so driven by the housing market that as soon as house prices naturally start falling then everyone panics and it becomes a self-fulfilling prophecy.
 
Scam said:
Says who? One could argue that our economy is so driven by the housing market that as soon as house prices naturally start falling then everyone panics and it becomes a self-fulfilling prophecy.
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In which case a house price drop would lead to a loss of jobs. Doesn't matter that the reasons are flawed, it just matters that it happens.
 
Scam said:
Says who? One could argue that our economy is so driven by the housing market that as soon as house prices naturally start falling then everyone panics and it becomes a self-fulfilling prophecy.
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Says all of history.
How are you going to obtain this price drop with out a rescission.
 
I'm not convinced it does, but there you go.

I'm not convinced a house price drop necessarily means a recession if it's caused by the things I quoted above. All those things are about improving renter's rights, reducing BTL etc. Landlords might be upset and lose some income but that doesn't mean thousands of people will lose their jobs.
 
If price drops were precipitated by a vast supply increase rather than interest rates rocketing, the situation would be very different from normal. We've just got so used to house prices and economic growth being strongly correlated, when it doesn't have to be the case. The state should have a much stronger stake in this area.
 
Falling house prices would have negative overall consequences for the economy. It's not just a symptom it can actually cause an economic downturn. This is mostly due to the housing wealth effect that would decrease consumer demand and as others have said will lower demand for building work.

http://sticerd.lse.ac.uk/dps/Conference/CEPR2016/Leth-Petersen.pdf

Secondly a lot of people's primary investment is their house, if the value falls it can radically alter their plans for later life.
 
Tunney said:
The only thing that's going to sort the housing crisis out is massive new wave of social housing construction by local councils. We're never going to see that under a Conservative government (or even most Labour governments).
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SImple release 5% of the greenbelt. That would allow 1.5m new homes to be built where they are needed but again, another government politician takes that option off the table by promising that he would never do that so if he ever did, his career would be over.
 
LeMson said:
https://www.theguardian.com/politics/2016/may/20/eu-referendum-george-osborne-house-prices-brexit Seems a drop in value from what is expected, my point was on him failing to deliver on it, lying, reading the situation wrong etc, and how much we can believe the current chancellor, not house prices going up or down :p
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Depends. He said it would be up to 18% lower than if we had stayed in, in two years time. If house prices went up by 20% by staying in then they still would have gone up by 2% by leaving.

Plus its assumes massive inflation, rising interest rates and lots of other bad things to do with Brexit which might still all happen if we keep pushing for a clean break WTO brexit.
 
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