Government welcomes sharp increase in house prices

Graham_Devon

Says it all really!

The BBC are all over house prices today. It's been the highlight of every show on Radio 2 (pumped into the office!) and they have even gone to the lengths of suggesting the nation isn't optimistic enough on prices and how well things are going.

It's been portrayed as brilliant news, though many callers have disagreed. Pretty much everytime anyone disagreed the beeb move back to how its a positive thing for those in negative equity.

However, they have said on the radio and also in print, that the government has welcomed the sharp increases in prices.

It's never been stated so blatantly before now as far as I'm aware, and the BBC must be getting it from somewhere, though so far I haven't heard an MP suggesting the sharp rise in prices is welcomed, however...

The government has welcomed data from the Royal Institution of Chartered Surveyors that suggests both the number of buyers entering the property market and house prices are increasing sharply.

http://www.bbc.co.uk/news/uk-23681019

JencParker

Graham_Devon wrote: »

Says it all really!

The BBC are all over house prices today. It's been the highlight of every show on Radio 2 (pumped into the office!) and they have even gone to the lengths of suggesting the nation isn't optimistic enough on prices and how well things are going.

It's been portrayed as brilliant news, though many callers have disagreed. Pretty much everytime anyone disagreed the beeb move back to how its a positive thing for those in negative equity.

However, they have said on the radio and also in print, that the government has welcomed the sharp increases in prices.

It's never been stated so blatantly before now as far as I'm aware, and the BBC must be getting it from somewhere, though so far I haven't heard an MP suggesting the sharp rise in prices is welcomed, however...

http://www.bbc.co.uk/news/uk-23681019

True, but it should come as no surprise.

chucky

Graham_Devon wrote: »

Government welcomes sharp increase in house prices

In no place in the article does it say that the 'Government welcomes sharp increases in house prices'.

You have just made it up.

carslet

people in my office were all talking about house prices today, all talking about buying before it is too late again

shortchanged_2

Inevitable I suppose when you aid demand with more financial incentives and supply remains constrained.

So no not good news really.

It's not genuine house price growth in the sense that activity is significantly increasing, just allowing more people to buy ever fewer houses.

Graham_Devon

chucky wrote: »

In no place in the article does it say that the 'Government welcomes sharp increases in house prices'.

You have just made it up.

It's in the quote flower.

Thrugelmir

Graham_Devon wrote: »

It's in the quote flower.

Quote from whom? Understand that an increase in FTB's is welcome. However......

Rising house prices not necessarily a good thing, says minister

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10239289/Rising-house-prices-not-necessarily-a-good-thing-says-minister.html

CLAPTON

I can't myself see where the minister is quoted as welcoming increased prices: that seems to be a BBC comment


the quote of the minister is

Communities Secretary Eric Pickles said the housing market had "turned a corner", adding: "This government's package of measures to boost the housing market is working, with housebuilding and housing supply on the up. The tough decisions we've taken to tackle the deficit are now delivering a sustainable increase in housing and providing real help to hard-working people.

"With over 10,000 reservations in four months, it's clear that the Help to Buy: Equity Loan is working well. By dealing with the big challenges, we are helping thousands of young people and families get on and move up the housing ladder, and Britain is building again."

And communities minister Brandon Lewis told BBC Radio 4's Today programme: "We've bought in this whole structure of measures to ensure firstly that new homes are getting built - nearly 320,000 over the last couple of years - and also that people have got access to the finance to buy that first home.

"That has a double benefit. First of all it gets people into their first home. That's good news. But it also gives confidence to the house builders.

"They've got the confidence money will be there for people to buy those houses."

Graham_Devon

Thrugelmir wrote: »

Quote from whom? Understand that an increase in FTB's is welcome. However......



http://www.telegraph.co.uk/finance/personalfinance/houseprices/10239289/Rising-house-prices-not-necessarily-a-good-thing-says-minister.html

From the BBC. As I say, they have said it was welcomed by the government on the radio too. They didn't quote who or what part of the government stated this though. As I said though, they must have got it from somewhere in order to state it.

They have been pretty much ramping all day long!

TruckerT

Graham_Devon wrote: »

From the BBC. As I say, they have said it was welcomed by the government on the radio too. They didn't quote who or what part of the government stated this though. As I said though, they must have got it from somewhere in order to state it.

They have been pretty much ramping all day long!

Whether they said so or not, it is clear that the government thinks that a 'booming property market' is extremely good news, and they are throwing tax-payer commitments towards increased profit for house-builders. There is much debate about the whether the housing market is dominated by the availability of suitable properties, or whether it is dominated by the availability of suitable finance.

The property market has been unique in that ever-rising prices have been regarded as universally beneficial. This is changing, and some commentators are beginning to say so. The government's help2buy schemes etc don't 'support' the market, they simply distort it. The only way the government can correct the housing shortage is to build its own houses, and offer them to the public at market rates (whether rented or purchased).

TruckerT

chris_m

Graham_Devon wrote: »

It's in the quote flower.

According to the quote to which you refer, the government has only welcomed the data - doesn't necessarily mean that they also welcome the interpretation placed on it