This article and the MPs commentary are spot on. Furthermore, our deindustrialisation is driven by the incredibly foolish energy policies common to all the main political parties. Industry needs a reliable and secure supply of affordable energy to enable it to survive, let alone thrive. Our political leaders are delivering something which is intermittent, insecure and very expensive . No wonder our deindustrialisation continues apace.
That MP’s comments seem to be dead right. But it does have to be said that there hasn’t exactly been much pushback on 0% interest rates. There should have been.
0% interest rates are exhibit A in the dangers of giving politicians new toys – they never go back in the box.
That MP’s comments seem to be dead right. But it does have to be said that there hasn’t exactly been much pushback on 0% interest rates. There should have been.
0% interest rates are exhibit A in the dangers of giving politicians new toys – they never go back in the box.
Malcolm Webb
11 months ago
This article and the MPs commentary are spot on. Furthermore, our deindustrialisation is driven by the incredibly foolish energy policies common to all the main political parties. Industry needs a reliable and secure supply of affordable energy to enable it to survive, let alone thrive. Our political leaders are delivering something which is intermittent, insecure and very expensive . No wonder our deindustrialisation continues apace.
Anthony Roe
11 months ago
Add 200,000 wealthy or desperate foreigners to the population of London every year and the stuation will worsen for the English who are rapidly abandoning the capital city leaving behind only the poor and the elderly.
Our overlords in London have long known that the arrival of 100,000 plus unplanned free movers magically led to their houses to gaining 100k a year too – you just needed to stop homes being built. Blair led the way coining a 30m property empire. All our top civil servants are like Starmer and the Idiot Milliband, sitting pretty in £4-6m houses. I wonder why the crisis has lasted 2 decades??? This will be seen as one of the most callous class war heists in social history – a 2 decade orgy of wealth accumulation that is only coming to end as the Time Bomb of Zero Interest Rates (handy that!!) and the QE/,Lockdown catastrophes bring the madness to a suitably explosive climax. Shame on our governing classes and their rank greed, the rocket fuel of Remainiac hysteria. They fought ugly to preserve an even uglier status quo – their untaxed unmerited Midas Machine.
Our overlords in London have long known that the arrival of 100,000 plus unplanned free movers magically led to their houses to gaining 100k a year too – you just needed to stop homes being built. Blair led the way coining a 30m property empire. All our top civil servants are like Starmer and the Idiot Milliband, sitting pretty in £4-6m houses. I wonder why the crisis has lasted 2 decades??? This will be seen as one of the most callous class war heists in social history – a 2 decade orgy of wealth accumulation that is only coming to end as the Time Bomb of Zero Interest Rates (handy that!!) and the QE/,Lockdown catastrophes bring the madness to a suitably explosive climax. Shame on our governing classes and their rank greed, the rocket fuel of Remainiac hysteria. They fought ugly to preserve an even uglier status quo – their untaxed unmerited Midas Machine.
Anthony Roe
11 months ago
Add 200,000 wealthy or desperate foreigners to the population of London every year and the stuation will worsen for the English who are rapidly abandoning the capital city leaving behind only the poor and the elderly.
Ian Barton
11 months ago
Why no mention of housing demand drivers ?
High interest rates would not be anywhere near as painful if house prices were at more normal “salary multiples”.
Last edited 11 months ago by Ian Barton
Ian Barton
11 months ago
Why no mention of housing demand drivers ?
High interest rates would not be anywhere near as painful if house prices were at more normal “salary multiples”.
Last edited 11 months ago by Ian Barton
Peter B
11 months ago
Good. It is not Rishi Sunak’s job to “save the property sector”. Nor should it be.
Thirty years of artificially inflating and propping up the property market have brought us to the point where a major recession is needed to correct the massive overshoot.
Separately, I’m not sure quite how this author feels confident enough to judge Rishi Sunak’s policies a failure after less than one year in charge. On the one hand, Pilkington is arguing for more stable, longer term policies. On the other, he seems to think that results can be reliably measured after less than a year.
Peter B
11 months ago
Good. It is not Rishi Sunak’s job to “save the property sector”. Nor should it be.
Thirty years of artificially inflating and propping up the property market have brought us to the point where a major recession is needed to correct the massive overshoot.
Separately, I’m not sure quite how this author feels confident enough to judge Rishi Sunak’s policies a failure after less than one year in charge. On the one hand, Pilkington is arguing for more stable, longer term policies. On the other, he seems to think that results can be reliably measured after less than a year.
j watson
11 months ago
And what exactly did Cates recommend as immediate actions and medium term solution? The need for the UK economy to rebalance away from finance to more manufacturing been a basic economic text book conclusion idea for decades. Saying it doesn’t make it happen. What’s she actually proposing to help make it happen?
Outlining this problem is a classic bit of ‘no sh*t Sherlock’.
Tories do alot of this. A veneer of policy to gain some plaudits with a vacuum below.
The switch of course would involve fundamental changes in how assets (and financial trades) are taxed and investment encouraged into manufacturing ventures because the returns elsewhere have been deliberately reduced. That’d upset a heck of alot of wealthy folks who prefer the lower risk use of their capital, and of course alot of super rich financiers too. So let’s be hearing what she suggests to do about this which isn’t all style and no substance.
I don’t seen any necessary link between inflated house prices and a large financial sector, much of which serves an overseas rather than domestic market and is enormously important for what we used to call the “balance of payments”. Reducing the size of a high value, high wage industry at which we are internationally competitive and successful to “rebalance” to some other activities in which we enjot less competitive advantage doesn’t sound like a smart thing to do to me.
You know perfectly well what the solutions are here. We all do.
In no particular order …
#1 Stop the BofE lending money at suppressed interest rates – this just fuels house price inflation – make those lazy fools do their one job and target 2% inflation
#2 Stop government subsidies for house building (“help to buy” = help make housing less affordable)
#3 Relax planning restrictions on house building to increase supply and reduce housing cost
#4 If necessary use more compulsory purchase of land to allow more housing supply
#5 Force all government agencies (including the NHS and ex-monopolies like BR), departments and local governments to release unused land and property. The MoD are the absolute worst culprits here.
#6 Get more of government out of London
#7 Limit net inward migration to something we can manage
#8 Increase property taxes on overseas property purchases
#9 Penal taxes on unused housing
#10 Increased taxes on second homes
#11 Improve the quality and size of new houses/flats and gardens – there is not actually a shortage of space that necessitates living in shoe boxes
#12 Consider capital gains taxation on housing – it’s done in some countries – why should unearned income go untaxed ?
#13 Stop all the idiotic measures which have undermined traditional pension investments
#14 Actually collect all the income tax and capital gains tax from rental property. I’m certain that a large percentage of this currently goes untaxed and in not enforced. Confiscation of property from those who systematically defraud the state and cannot/will not pay overdue tax + interest + fines.
Probably missed a few others.
Now show me your list.
Apologies. Forgot this (spotted in another comment:
#15 Reduce – if not eliminate – all the green taxes making energy less affordable and destroying industry so the Chinese can create greater overall pollution
That won’t reduce house prices, but it will cushion the period of correction.
Politicians have spent the last 20 or 30 years deliberately making both housing and energy more expensive. These were deliberate policy choices. They can be changed.
Yes much I agree with in these lists PB. I disagree with no.15, but 14 agreements be a first for us wouldn’t it!
My comment was more at the Cates missive on re-balancing between finance and manufacturing/Industry.
Yes much I agree with in these lists PB. I disagree with no.15, but 14 agreements be a first for us wouldn’t it!
My comment was more at the Cates missive on re-balancing between finance and manufacturing/Industry.
Apologies. Forgot this (spotted in another comment:
#15 Reduce – if not eliminate – all the green taxes making energy less affordable and destroying industry so the Chinese can create greater overall pollution
That won’t reduce house prices, but it will cushion the period of correction.
Politicians have spent the last 20 or 30 years deliberately making both housing and energy more expensive. These were deliberate policy choices. They can be changed.
I don’t seen any necessary link between inflated house prices and a large financial sector, much of which serves an overseas rather than domestic market and is enormously important for what we used to call the “balance of payments”. Reducing the size of a high value, high wage industry at which we are internationally competitive and successful to “rebalance” to some other activities in which we enjot less competitive advantage doesn’t sound like a smart thing to do to me.
You know perfectly well what the solutions are here. We all do.
In no particular order …
#1 Stop the BofE lending money at suppressed interest rates – this just fuels house price inflation – make those lazy fools do their one job and target 2% inflation
#2 Stop government subsidies for house building (“help to buy” = help make housing less affordable)
#3 Relax planning restrictions on house building to increase supply and reduce housing cost
#4 If necessary use more compulsory purchase of land to allow more housing supply
#5 Force all government agencies (including the NHS and ex-monopolies like BR), departments and local governments to release unused land and property. The MoD are the absolute worst culprits here.
#6 Get more of government out of London
#7 Limit net inward migration to something we can manage
#8 Increase property taxes on overseas property purchases
#9 Penal taxes on unused housing
#10 Increased taxes on second homes
#11 Improve the quality and size of new houses/flats and gardens – there is not actually a shortage of space that necessitates living in shoe boxes
#12 Consider capital gains taxation on housing – it’s done in some countries – why should unearned income go untaxed ?
#13 Stop all the idiotic measures which have undermined traditional pension investments
#14 Actually collect all the income tax and capital gains tax from rental property. I’m certain that a large percentage of this currently goes untaxed and in not enforced. Confiscation of property from those who systematically defraud the state and cannot/will not pay overdue tax + interest + fines.
Probably missed a few others.
Now show me your list.
j watson
11 months ago
And what exactly did Cates recommend as immediate actions and medium term solution? The need for the UK economy to rebalance away from finance to more manufacturing been a basic economic text book conclusion idea for decades. Saying it doesn’t make it happen. What’s she actually proposing to help make it happen?
Outlining this problem is a classic bit of ‘no sh*t Sherlock’.
Tories do alot of this. A veneer of policy to gain some plaudits with a vacuum below.
The switch of course would involve fundamental changes in how assets (and financial trades) are taxed and investment encouraged into manufacturing ventures because the returns elsewhere have been deliberately reduced. That’d upset a heck of alot of wealthy folks who prefer the lower risk use of their capital, and of course alot of super rich financiers too. So let’s be hearing what she suggests to do about this which isn’t all style and no substance.
Last edited 11 months ago by j watson
Warren Trees
11 months ago
The entire premise is WRONG. PM’s don’t set interest rates, the market does. And inflation is not caused by rising wages. It’s the other way round.
Warren Trees
11 months ago
The entire premise is WRONG. PM’s don’t set interest rates, the market does. And inflation is not caused by rising wages. It’s the other way round.
Will K
11 months ago
One could also say that those now complaining about mortgage rate increases, agreed to a contract with this exact possibility.
Will K
11 months ago
One could also say that those now complaining about mortgage rate increases, agreed to a contract with this exact possibility.
This article and the MPs commentary are spot on. Furthermore, our deindustrialisation is driven by the incredibly foolish energy policies common to all the main political parties. Industry needs a reliable and secure supply of affordable energy to enable it to survive, let alone thrive. Our political leaders are delivering something which is intermittent, insecure and very expensive . No wonder our deindustrialisation continues apace.
That MP’s comments seem to be dead right. But it does have to be said that there hasn’t exactly been much pushback on 0% interest rates. There should have been.
0% interest rates are exhibit A in the dangers of giving politicians new toys – they never go back in the box.
That MP’s comments seem to be dead right. But it does have to be said that there hasn’t exactly been much pushback on 0% interest rates. There should have been.
0% interest rates are exhibit A in the dangers of giving politicians new toys – they never go back in the box.
This article and the MPs commentary are spot on. Furthermore, our deindustrialisation is driven by the incredibly foolish energy policies common to all the main political parties. Industry needs a reliable and secure supply of affordable energy to enable it to survive, let alone thrive. Our political leaders are delivering something which is intermittent, insecure and very expensive . No wonder our deindustrialisation continues apace.
Add 200,000 wealthy or desperate foreigners to the population of London every year and the stuation will worsen for the English who are rapidly abandoning the capital city leaving behind only the poor and the elderly.
Our overlords in London have long known that the arrival of 100,000 plus unplanned free movers magically led to their houses to gaining 100k a year too – you just needed to stop homes being built. Blair led the way coining a 30m property empire. All our top civil servants are like Starmer and the Idiot Milliband, sitting pretty in £4-6m houses. I wonder why the crisis has lasted 2 decades??? This will be seen as one of the most callous class war heists in social history – a 2 decade orgy of wealth accumulation that is only coming to end as the Time Bomb of Zero Interest Rates (handy that!!) and the QE/,Lockdown catastrophes bring the madness to a suitably explosive climax. Shame on our governing classes and their rank greed, the rocket fuel of Remainiac hysteria. They fought ugly to preserve an even uglier status quo – their untaxed unmerited Midas Machine.
Our overlords in London have long known that the arrival of 100,000 plus unplanned free movers magically led to their houses to gaining 100k a year too – you just needed to stop homes being built. Blair led the way coining a 30m property empire. All our top civil servants are like Starmer and the Idiot Milliband, sitting pretty in £4-6m houses. I wonder why the crisis has lasted 2 decades??? This will be seen as one of the most callous class war heists in social history – a 2 decade orgy of wealth accumulation that is only coming to end as the Time Bomb of Zero Interest Rates (handy that!!) and the QE/,Lockdown catastrophes bring the madness to a suitably explosive climax. Shame on our governing classes and their rank greed, the rocket fuel of Remainiac hysteria. They fought ugly to preserve an even uglier status quo – their untaxed unmerited Midas Machine.
Add 200,000 wealthy or desperate foreigners to the population of London every year and the stuation will worsen for the English who are rapidly abandoning the capital city leaving behind only the poor and the elderly.
Why no mention of housing demand drivers ?
High interest rates would not be anywhere near as painful if house prices were at more normal “salary multiples”.
Why no mention of housing demand drivers ?
High interest rates would not be anywhere near as painful if house prices were at more normal “salary multiples”.
Good. It is not Rishi Sunak’s job to “save the property sector”. Nor should it be.
Thirty years of artificially inflating and propping up the property market have brought us to the point where a major recession is needed to correct the massive overshoot.
Separately, I’m not sure quite how this author feels confident enough to judge Rishi Sunak’s policies a failure after less than one year in charge. On the one hand, Pilkington is arguing for more stable, longer term policies. On the other, he seems to think that results can be reliably measured after less than a year.
Good. It is not Rishi Sunak’s job to “save the property sector”. Nor should it be.
Thirty years of artificially inflating and propping up the property market have brought us to the point where a major recession is needed to correct the massive overshoot.
Separately, I’m not sure quite how this author feels confident enough to judge Rishi Sunak’s policies a failure after less than one year in charge. On the one hand, Pilkington is arguing for more stable, longer term policies. On the other, he seems to think that results can be reliably measured after less than a year.
And what exactly did Cates recommend as immediate actions and medium term solution? The need for the UK economy to rebalance away from finance to more manufacturing been a basic economic text book conclusion idea for decades. Saying it doesn’t make it happen. What’s she actually proposing to help make it happen?
Outlining this problem is a classic bit of ‘no sh*t Sherlock’.
Tories do alot of this. A veneer of policy to gain some plaudits with a vacuum below.
The switch of course would involve fundamental changes in how assets (and financial trades) are taxed and investment encouraged into manufacturing ventures because the returns elsewhere have been deliberately reduced. That’d upset a heck of alot of wealthy folks who prefer the lower risk use of their capital, and of course alot of super rich financiers too. So let’s be hearing what she suggests to do about this which isn’t all style and no substance.
I don’t seen any necessary link between inflated house prices and a large financial sector, much of which serves an overseas rather than domestic market and is enormously important for what we used to call the “balance of payments”. Reducing the size of a high value, high wage industry at which we are internationally competitive and successful to “rebalance” to some other activities in which we enjot less competitive advantage doesn’t sound like a smart thing to do to me.
You know perfectly well what the solutions are here. We all do.
In no particular order …
#1 Stop the BofE lending money at suppressed interest rates – this just fuels house price inflation – make those lazy fools do their one job and target 2% inflation
#2 Stop government subsidies for house building (“help to buy” = help make housing less affordable)
#3 Relax planning restrictions on house building to increase supply and reduce housing cost
#4 If necessary use more compulsory purchase of land to allow more housing supply
#5 Force all government agencies (including the NHS and ex-monopolies like BR), departments and local governments to release unused land and property. The MoD are the absolute worst culprits here.
#6 Get more of government out of London
#7 Limit net inward migration to something we can manage
#8 Increase property taxes on overseas property purchases
#9 Penal taxes on unused housing
#10 Increased taxes on second homes
#11 Improve the quality and size of new houses/flats and gardens – there is not actually a shortage of space that necessitates living in shoe boxes
#12 Consider capital gains taxation on housing – it’s done in some countries – why should unearned income go untaxed ?
#13 Stop all the idiotic measures which have undermined traditional pension investments
#14 Actually collect all the income tax and capital gains tax from rental property. I’m certain that a large percentage of this currently goes untaxed and in not enforced. Confiscation of property from those who systematically defraud the state and cannot/will not pay overdue tax + interest + fines.
Probably missed a few others.
Now show me your list.
Apologies. Forgot this (spotted in another comment:
#15 Reduce – if not eliminate – all the green taxes making energy less affordable and destroying industry so the Chinese can create greater overall pollution
That won’t reduce house prices, but it will cushion the period of correction.
Politicians have spent the last 20 or 30 years deliberately making both housing and energy more expensive. These were deliberate policy choices. They can be changed.
Yes much I agree with in these lists PB. I disagree with no.15, but 14 agreements be a first for us wouldn’t it!
My comment was more at the Cates missive on re-balancing between finance and manufacturing/Industry.
Thanks JW. Almost 100% agreement. I’m going to call it a day there before I ruin it !
Thanks JW. Almost 100% agreement. I’m going to call it a day there before I ruin it !
Yes much I agree with in these lists PB. I disagree with no.15, but 14 agreements be a first for us wouldn’t it!
My comment was more at the Cates missive on re-balancing between finance and manufacturing/Industry.
Apologies. Forgot this (spotted in another comment:
#15 Reduce – if not eliminate – all the green taxes making energy less affordable and destroying industry so the Chinese can create greater overall pollution
That won’t reduce house prices, but it will cushion the period of correction.
Politicians have spent the last 20 or 30 years deliberately making both housing and energy more expensive. These were deliberate policy choices. They can be changed.
I don’t seen any necessary link between inflated house prices and a large financial sector, much of which serves an overseas rather than domestic market and is enormously important for what we used to call the “balance of payments”. Reducing the size of a high value, high wage industry at which we are internationally competitive and successful to “rebalance” to some other activities in which we enjot less competitive advantage doesn’t sound like a smart thing to do to me.
You know perfectly well what the solutions are here. We all do.
In no particular order …
#1 Stop the BofE lending money at suppressed interest rates – this just fuels house price inflation – make those lazy fools do their one job and target 2% inflation
#2 Stop government subsidies for house building (“help to buy” = help make housing less affordable)
#3 Relax planning restrictions on house building to increase supply and reduce housing cost
#4 If necessary use more compulsory purchase of land to allow more housing supply
#5 Force all government agencies (including the NHS and ex-monopolies like BR), departments and local governments to release unused land and property. The MoD are the absolute worst culprits here.
#6 Get more of government out of London
#7 Limit net inward migration to something we can manage
#8 Increase property taxes on overseas property purchases
#9 Penal taxes on unused housing
#10 Increased taxes on second homes
#11 Improve the quality and size of new houses/flats and gardens – there is not actually a shortage of space that necessitates living in shoe boxes
#12 Consider capital gains taxation on housing – it’s done in some countries – why should unearned income go untaxed ?
#13 Stop all the idiotic measures which have undermined traditional pension investments
#14 Actually collect all the income tax and capital gains tax from rental property. I’m certain that a large percentage of this currently goes untaxed and in not enforced. Confiscation of property from those who systematically defraud the state and cannot/will not pay overdue tax + interest + fines.
Probably missed a few others.
Now show me your list.
And what exactly did Cates recommend as immediate actions and medium term solution? The need for the UK economy to rebalance away from finance to more manufacturing been a basic economic text book conclusion idea for decades. Saying it doesn’t make it happen. What’s she actually proposing to help make it happen?
Outlining this problem is a classic bit of ‘no sh*t Sherlock’.
Tories do alot of this. A veneer of policy to gain some plaudits with a vacuum below.
The switch of course would involve fundamental changes in how assets (and financial trades) are taxed and investment encouraged into manufacturing ventures because the returns elsewhere have been deliberately reduced. That’d upset a heck of alot of wealthy folks who prefer the lower risk use of their capital, and of course alot of super rich financiers too. So let’s be hearing what she suggests to do about this which isn’t all style and no substance.
The entire premise is WRONG. PM’s don’t set interest rates, the market does. And inflation is not caused by rising wages. It’s the other way round.
The entire premise is WRONG. PM’s don’t set interest rates, the market does. And inflation is not caused by rising wages. It’s the other way round.
One could also say that those now complaining about mortgage rate increases, agreed to a contract with this exact possibility.
One could also say that those now complaining about mortgage rate increases, agreed to a contract with this exact possibility.