Land registry say prices increased last month more than any time in 14 years

Generali

HAMISH_MCTAVISH wrote: »

Of course they are.

The PTB have been desperately trying to keep a lid on the inevitable boom for years via artificially suppressing effective demand through bank capital requirements, MMR, the new BTL disincentives, etc, and all the various HTB schemes are nothing but smoke and mirrors to distract from that fact.

And all any of it has done is kick the can down the road, sending new-building to 100 year lows, worsening the shortage to crisis point, causing rents to soar to record highs, adding a million adults to the total of those living with their parents, and another million to the register of those forced to buy a house for their landlords instead of themselves.

It's completely and utterly unsustainable so at some point they'll have absolutely no choice but to admit defeat and let lending rip to get more houses built.

And when they do the next boom is going to be an absolute monster as this mess unwinds.

There is a theory, which I am undecided about depending on which way the wind is blowing, that goes that all recessions are ultimately inflationary due to supply destruction. Your views would fit very nicely with that idea I think.

I suppose we can see the reverse through the commodities markets: the boom ended up being deflationary due to excessive supply. The same could be said of the Irish and Spanish housing makets.