Why did the markets go up so much?

Glen_Clark

Thrugelmir wrote: »

Only Tories own property to let?

Nobody said that. But Tories are invariably landlords who benefit from their housing market interventions that push up housing costs, and housing benefit costs, with taxpayers borrowed money. That's not been good for equity prices as a whole, and especially bad for the big 4 middle of the road grocers as lower disposable income forces their customers to move downmarket. Housebuilders have done better in the short term as the value of their landbanks have increased - but their actual earnings from building houses hasn't changed much so its not sustainable.

bowlhead99

Glen_Clark wrote: »

Thrugelmir wrote: »

Only Tories own property to let? I suspect not. Stereotyping is best avoided.

Nobody said that. But Tories are invariably landlords who benefit from their housing market interventions that push up housing costs

If you are trying to avoid stereotyping you probably shouldn't say tories are "invariably" landlords [invariably: adv in every case or on every occasion; always.] which is patently incorrect. I would say that those 11 million plus tory voters this year were generally not landlords, but 'normal' everyday people.

It is the other way around; you mean landlords like many types of capitalists are invariably tories because they seek to avoid high levels of business and property taxation and have a lower level of regulation.

To borrow from a recent telegraph article someone posted, coming into the current election the tories positioned themselves as “friends” of the property industry with plans costed-out in detail. Labour took a polar opposite stance; their plans for a mansion tax, abolishing non-dom status and allowing local authorities to compulsory-purchase unused sites from developers was perhaps likely to suppress new development and further cool the housing market in the capital and surrounding home counties.

The Conservative plans were the ones looking the most likely to result in higher rents and freehold values ; because their economic policies are most likely to settle City nerves and continue to provide confidence and stability which in turn should help maintain low interest rates etc. And the public voted for it.

Probably the best thing to do to cool the property market would be to have voted UKIP and close the doors to immigrants "comin' over here, takin' our housin' stock". Maybe the tories allowing everyone to have a chance to vote us out of Europe will have an effect on housing demand - though I think it would be remote that people would actually vote us out so it is a moot point - but that result would perhaps have a larger effect than labours nominal 'rent freezes' or some of their building plans which would have been unlikely to get into motion over the short 5 year term of office.

Still, discussing any of this would turn it into yet another politician-bashing thread which better sits on the debate the housing market and the economy board.

Glen_Clark

bowlhead99 wrote: »

If you are trying to avoid stereotyping you probably shouldn't say tories are "invariably" landlords [invariably: adv in every case or on every occasion; always.] which is patently incorrect. I would say that those 11 million plus tory voters this year were generally not landlords, but 'normal' everyday people.

It is the other way around; you mean landlords like many types of capitalists are invariably tories because they seek to avoid high levels of business and property taxation and have a lower level of regulation.

To borrow from a recent telegraph article someone posted, coming into the current election the tories positioned themselves as “friends” of the property industry with plans costed-out in detail. Labour took a polar opposite stance; their plans for a mansion tax, abolishing non-dom status and allowing local authorities to compulsory-purchase unused sites from developers was perhaps likely to suppress new development and further cool the housing market in the capital and surrounding home counties.

The Conservative plans were the ones looking the most likely to result in higher rents and freehold values ; because their economic policies are most likely to settle City nerves and continue to provide confidence and stability which in turn should help maintain low interest rates etc. And the public voted for it.

Probably the best thing to do to cool the property market would be to have voted UKIP and close the doors to immigrants "comin' over here, takin' our housin' stock". Maybe the tories allowing everyone to have a chance to vote us out of Europe will have an effect on housing demand - though I think it would be remote that people would actually vote us out so it is a moot point - but that result would perhaps have a larger effect than labours nominal 'rent freezes' or some of their building plans which would have been unlikely to get into motion over the short 5 year term of office.

Still, discussing any of this would turn it into yet another politician-bashing thread which better sits on the debate the housing market and the economy board.

In a thread about why did the markets go up after the election its difficult to avoid talking about politics.
The greatest change I have seen in my lifetime is that affordable housing used to be seen as good. Now unaffordable housing is seen as good. The usual rules of supply and demand apply, and yet politicians studiously avoid the obvious solution to the housing crisis of relaxing planning constraints to increase the supply.

enjoyyourshoes

Some of it was a function of the previous declining in values over the previous 4- 6 weeks.

lejog2003

For those who attributed Friday's rise to the UK election results, presumably after a weekend's reflection on the possibility of EU exit, the markets are less keen. FTSE down 139.4 at the moment.:p

talexuser

Private Eye had an opinion on the election result cf shares: Outsourcing companies Capita, and the taxpayer overcharging cheats G4S and Serco up between 6 to 7%. Trebles all round!

And up market London estate agents Foxtons and Savills between 9 and 10% up... more asset inflation? Trebles all round again!

:beer: