Rising House Prices now helping wider economy

E.L.James

Rising rents will not help the wider economy, its falling rents will help.

rising rents mean less funds available and all businesses suffer.

When rents fall, then the UK economy can get back to growth.

CLAPTON

E.L.James wrote: »

Rising rents will not help the wider economy, its falling rents will help.

rising rents mean less funds available and all businesses suffer.

When rents fall, then the UK economy can get back to growth.

well it depends upon the propensity to consume.

no money is destroyed.

the rents that are paid go to landlords who now have more money

if the renters would spend and the landlord would save then there is a reduction in demand
if the landlord invests the money then the economy may grow

etc

nickj_2

E.L.James wrote: »

Rising rents will not help the wider economy, its falling rents will help.

rising rents mean less funds available and all businesses suffer.

When rents fall, then the UK economy can get back to growth.

ditto house prices ,

mrginge

Where did all this extra disposable income come from to support this surge in spending?

shortchanged_2

mrginge wrote: »

Where did all this extra disposable income come from to support this surge in spending?

Most likely the good old flexible friend.