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Thursday, November 17, 2016

House price bubbles in Burnley

Burnley Council are adding to the Housing Bubble, by trying to sanction the building of £250-350,000 houses in rural Green Field Areas instead of concentrating on Social Sustainable Affordable housing. House price bubbles benefit almost no-one Asset price bubbles and the speculative behaviour associated with them tend to cause financial crises, which lead to lower growth, higher unemployment and higher government debt.
High house prices also act as a mechanism for transferring wealth from the young to the old, from the poor to the rich, and from those that don’t own their own home to those that do.
Even those with housing don’t benefit massively from higher house prices – we all need somewhere to live, and anyone selling their home will find that on average other house prices will have risen by the same amount, leaving them no better off.
In reality, only the banks and those with many properties benefit from high house prices: high prices mean that people will have to take out larger mortgages for longer periods of time, which means more money in interest payments for the banks.     

House prices: why are they so high?

Tweet 1. Banks created hundreds of billions of pounds and put it into property In the ten years up to the start of the financial crisis, house prices tripled. Many people think this is because there were not enough houses ... Continue reading →

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