Monday, 28 September 2009

Housing Market Joys And Woes

Your home is the single biggest purchase most people will ever make in their lives and the housing market has therefore become a prime indicator of the state of the economy.

So it will warm the hearts of large sections of society to know that their equity is returning to positive territory.

Radio Bracknell reports house prices are on the rise again, while Appleton Estates have recently seen a recovery in rental prices.

This has even lead to some estate agent chains feeling bullish enough to open new shops.

However with the credit crunch still fresh in the memory many will be wondering if reinflating the bubble is a sustainable means of wealth-creation and getting the country out of recession.

PKS Property Services says you'd be right to be highly sceptical about the sudden return of confidence, citing 5 reasons why they predict the sector could halve in the next 12 months.

Redlands LibDems are concerned with the effect of the housing market on those who find themselves excluded from it.

Cllr Benson reports on the case of a Reading-born resident who wants to stay in the area, but for financial reasons relies upon housing provided by the council.

The Right-to-Buy policy introduced by the Conservative government in the 1980's helped many people with disposable incomes get a step on the housing ladder, but the consequence was reduced service levels for those who had become trapped.

Not only were the more desirable and larger council-owned properties sold off first, meaning overcrowding became a problem as the available property pool dwindled, but it also has meant a reduction in the ability to maintain those it does have - leaving many homes in an unfit state for habitation.

With bad housing one of the prime causes of deprivation and child poverty, Cllr Benson notes the reduced life chances in areas like the Hexham Road.

The ward resident she spoke to has taken the response by applying to join the council housing waiting list in Oxford.

Her inescapable conclusion is that Reading under Labour prefers to shift problems than to deal with the causes.

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Update: Bracknell Blog takes us on a tour of Easthampstead's listed Point Royal tower block. Dazmando notes that there are social ills, as with all social housing, but says the ability to deal with them "also depends on your neighbours and your relationships with them and your willingness to engage."

It's official - housing prices are back to 2008 levels!

The Age of Stupidity turns his analytic gaze on housing asset prices, describing them as one of the most misunderstood asset classes around.

Interestingly he says that bubbles are caused by expansionary monetary policies and predicts inflated prices on goods and services will be the preferred choice of policy-makers to control the economy grinding to a halt.

1 comment:

  1. this is interesting but I've been reading that this is a false dawn and that prices will go down next year as the recession continues.

    OJ, I have tried to log in as one of the choices but it takes so long to load that I have given up, sorry. My blogspot URL is rerouted to a real domain so can't use that either. (this is Elizabeth.)

    ReplyDelete

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