torsdag 8 november 2007

Shome mishtake shomewhere?



The house a couple of doors away is for sale. They are asking £390,000. They would certainly get £360,000 so they are obviously trying it on a bit, but I don't blame the owners for that and they will have to find somewhere else. They have probably realised the schools round here are no good.

Twenty five years ago the price of the house would have been about £30,000. Of course it is not the house that has gone up in value but the land it is standing on. The government claims to be concerned about the shortage of affordable "homes" and is proposing to allow the building of hundreds of thousands of new houses.

But this morning, a commentator on the radio was saying that there is a risk of house prices falling as this would have all sorts of dire effects. Of which, presumably making houses more affordable is one of the dire effects. And so this commentator suggested that interest rates should come down to keep the prices buoyant and prevent a fall.

So which is it? Are high house prices a good thing or a bad thing? Can someone please explain? There seems to be some mistake somewhere.

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Cardinal Cormac Murphy O'Connor

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