Vince Cable suggests an "old fashioned boom developing"

Graham_Devon

He states that this "very worrying" boom which is developing is very reliant on rising house prices, credit and consumption.

He says the trend cannot continue. If you have an economy which is totally reliant on a housing boom and on credit, then that is worrying.

He also goes on to say there were plenty of arguments between himself and Osborne when in the coalition.

He states that one of the very ugly prejudices from the tories was the rather cynical attitude to letting house prices rise.

So it would appear that this is the closest we have come (and yes, some won't like me saying this) to the suggestions that the government are actively targeting increasing HPI.

His biggest regret? Not winning the argument against the tories. If he did, he stated we'd now have tens of thousands more houses.

His interview on newsnight starts at around 17m20s.

http://www.bbc.co.uk/iplayer/episode/b06bbvk5/newsnight-09092015

Landofwood

But the materials of the table are equally as important as the design.

carslet

Has the last boom finished

CLAPTON

Graham_Devon wrote: »

He states that this "very worrying" boom which is developing is very reliant on rising house prices, credit and consumption.

He says the trend cannot continue. If you have an economy which is totally reliant on a housing boom and on credit, then that is worrying.

He also goes on to say there were plenty of arguments between himself and Osborne when in the coalition.

He states that one of the very ugly prejudices from the tories was the rather cynical attitude to letting house prices rise.

So it would appear that this is the closest we have come (and yes, some won't like me saying this) to the suggestions that the government are actively targeting increasing HPI.

His biggest regret? Not winning the argument against the tories. If he did, he stated we'd now have tens of thousands more houses.

His interview on newsnight starts at around 17m20s.

http://www.bbc.co.uk/iplayer/episode/b06bbvk5/newsnight-09092015

isn't the independent BoE meant to sort these things out?

cells

capital cities are expensive even in nations that build a lot of homes

Paris average is 7900 euro per sqm and this is after 3 years of flat to slightly falling prices

80 sqm apartment is therefore ~£470,000 which is not far off London average property price of £490,000 or thereabouts

edit: surprisingly a google search suggests they have 20 year fix deals at ~2.5% fixed which seems a lot more sane and logical than doing a new 2 year fix with £1-2k fees every other year

antrobus

Graham_Devon wrote: »

He states that this "very worrying" boom which is developing is very reliant on rising house prices, credit and consumption.

He says the trend cannot continue. If you have an economy which is totally reliant on a housing boom and on credit, then that is worrying....

Household consumption increased by 1.7% in 2013, investment grew by 3.4%. Household consumption increased by 2.6% in 2014, investment grew by 8.6%. Can't quite see what Cable is on about myself.

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN02787

I suppose we can't really expect Cable to actually read HOC briefing papers these days since he ceased to be an MP, but surely we have reached the point where the OP stops believing the first thing he reads in the papers and actually fact checks something?:)

Pobby

Not sure the last boom has finished at all. Lots of qe, more and more debt. has to stop somewhere.

Thrugelmir

Graham_Devon wrote: »

He states that this "very worrying" boom which is developing is very reliant on rising house prices, credit and consumption.

He says the trend cannot continue. If you have an economy which is totally reliant on a housing boom and on credit, then that is worrying.

He also goes on to say there were plenty of arguments between himself and Osborne when in the coalition.

He states that one of the very ugly prejudices from the tories was the rather cynical attitude to letting house prices rise.

So it would appear that this is the closest we have come (and yes, some won't like me saying this) to the suggestions that the government are actively targeting increasing HPI.

His biggest regret? Not winning the argument against the tories. If he did, he stated we'd now have tens of thousands more houses.

His interview on newsnight starts at around 17m20s.

http://www.bbc.co.uk/iplayer/episode/b06bbvk5/newsnight-09092015

Wouldn't have anything to do with Labour's election campaign. Coming out of retirement. After all he is now a has been.

wymondham

I don't think its a secret Government policy is to increase house prices - after all everything they do ensures this continues.....

jacko74

It's certainly the worst kept 'secret' government policy I've ever seen!

Thrugelmir

jacko74 wrote: »

It's certainly the worst kept 'secret' government policy I've ever seen!

I more concerned that people think it even is a policy.............. guess it's down to the UK's obsession with the topic.