Waiting for a recovery in house prices? Better hope the tories dont get in!!! Muhahah

mbga9pgf

http://www.telegraph.co.uk/news/newstopics/politics/conservative/4436380/Conservatives-would-give-Bank-of-England-new-powers-to-control-house-price-rises-says-George-Osborne.html

The Shadow Chancellor used a speech to a London think-tank to give more details on how the Tories would reform banking rules and financial regulation to avoid repeating the boom-and-bust cycle of recent decades.
Signalling that he wants to see an economy less dependent on the City and financial services, Mr Osborne promised a "new settlement" for banking and finance.
Accusing Gordon Brown of fuelling an unsustainable growth in house prices by overseeing lax credit rules, Mr Osborne signalled that a Conservative government would oversee a period of more restrained lending.
The Tory plan would entail a change in the Bank of England's obligations. Under current rules, the Bank is charged only with ensuring a stable rate of inflation, and has no formal requirement to consider house prices other than as they affect the general price level.
Mr Osborne said that as well as targeting a stable rate of inflation, the Bank should be told to monitor house prices and other asset prices.
When Bank chiefs judged that house prices were rising too quickly, they would have the power order commercial banks to restrict their lending to individuals and companies, slowing the housing market.

If this comes in, we will never see houses at the real adjusted values they reached in 2007... Thank god.

Better get used to CPI level rises from now until eternity!

hearts

What these people say and what they actually end up doing is 3 different things. ;-) ....and that applies to all of em.
When they are trying to get in, they say whatever they think people want/expect to hear.

nobblyned

mbga9pgf wrote: »

http://www.telegraph.co.uk/news/newstopics/politics/conservative/4436380/Conservatives-would-give-Bank-of-England-new-powers-to-control-house-price-rises-says-George-Osborne.html



If this comes in, we will never see houses at the real adjusted values they reached in 2007... Thank god.

Better get used to CPI level rises from now until eternity!

If the economy grows too fast, the Tories will step in and restrict lending to companies and individuals??

No chance!

They'll be too busy crowing from the rooftops about how well the economy is performing under them. This is typical rhetoric that sounds good in a bust environment, but will quickly evaporate once times are better.

tomstickland

I am of the opinion that house price growth was a very bad thing and that we do not need a "recovery" in house prices.

pandamonia

All we need is a stabilisation of prices and thats it.

we dont need a recovery we just need 3% price growth per yr