Labour = lower rents and house prices

DiggerUK

There is currently a very high demand for property to rent and property to buy. Prices will rise until the market can't sell at the prices asked. Old school economics I know, but sound.

If wages rise, then the market price for both rented and owned property can keep going up. But only if supply is restricted as now.

The major problem that Corbyn is addressing is how to increase supply of homes for rent, and homes to purchase. Solving that should manipulate prices down to more affordable levels. Old school economics I know, but sound..._

The-Joker

Malthusian wrote: »

In economics demand is measured in pounds, not people. One person who wants to pay £100 for an item has the same effect on the market as two people willing to pay £50 each to share it. If today someone is willing to pay £90 for an item with a current market price of £100 and tomorrow the same person has a windfall and is now willing to pay £110, demand has risen and production should increase, even though the number of people demanding the item is unchanged.

There is £0 demand for tents in a refugee camp because refugee camps exist for people with no money. Anyone in a refugee camp who has money digs a hole and saves it up until they have enough to get out of the refugee camp. The fact that lots of people with no money want to live there is irrelevant, demand is measured in £s and demand for a refugee tent is £0.

You have already had this pointed out to you but ignored it twice, because you like to lie to yourself.

Also a lie to yourself.

It doesn’t matter how many people would like to live in a house all that matters is how many can raise the asking price

michaels

Op is correct. Crash the economy and incomes and more importantly population will fall so there will be more houses and less money per person so prices will fall. Whether this will be relative to average incomes is less clear.

MobileSaver

michaels wrote: »

Crash the economy and incomes and more importantly population will fall so there will be more houses and less money per person so prices will fall.

Of course, similarly if we have a nuclear war or other form of apocalypse house prices will fall but just like crashing the economy they are all somewhat extreme ways of the HPC zealots getting their fantasy "50% off by Christmas" houses.

michaels wrote: »

Crash the economy and incomes ... Whether this will be relative to average incomes is less clear.

For me it's as clear as day; most houses will always have value as shelter for people, crash the economy and lots of people will have zero jobs and zero incomes so house prices relative to incomes will become higher not lower.

It's one of the fundamental flaws in the Crashy/Joker delusion that you can somehow have a house price crash in complete isolation to the rest of the economy - history tells us that's not how it works and a crash makes it harder not easier to get on the housing ladder.

The-Joker

michaels wrote: »

Op is correct. Crash the economy and incomes and more importantly population will fall so there will be more houses and less money per person so prices will fall. Whether this will be relative to average incomes is less clear.

Of course average income will also fall

The-Joker

MobileSaver wrote: »

Of course, similarly if we have a nuclear war or other form of apocalypse house prices will fall but just like crashing the economy they are all somewhat extreme ways of the HPC zealots getting their fantasy "50% off by Christmas" houses.

I don’t think anybody is predicting 50% crash in nominal terms, but yes maybe 50% crash in real inflation adjusted terms as has happened many times in the past when there is a correction in property prices.

None of those things happened ( nuclear war etc) last times the property market had a 50% inflation adjusted correction so they won’t be required for the next 50% inflation adjusted correction either.

Davy_Jones_II

The-Joker wrote: »

Especially right to buy private tenants which had already spooked the market. Foreign property owners all want to sell up in Britain if the government can force them to sell at a lower price.

The long list of other labour policies all equals lower property

I’ll leave my properties empty should Labour form a government.

lisyloo

1) how predictable do you think house price crashes are for your average financially unsophisticated person?

2) is it a risk for an ordinary couple (say 2 incomes) to wait for a crash if the accompanying recession means they might lose one of their jobs?

lisyloo

Davy_Jones_II wrote: »

I’ll leave my properties empty should Labour form a government.

I don’t think most landlords would do that.
It only needs some more to sell to make a difference.

DiggerUK

Davy_Jones_II wrote:

I’ll leave my properties empty should Labour form a government.

Nose, face, cut.....stupid is as stupid does..._