House price bubble
[Re: Artificially limiting rises in house prices will do more harm than good, yesterday]
Philip Booth is the voice of reason, rightly pointing out that we have one of the most restrictive land-use planning policies in Europe. I am surprised that the Royal Institute of Chartered Surveyors has called for these limiting proposals, rather than putting its weight squarely behind freeing up supply – to closer match demand – in the housing market.
I disagree with the assertion that there is no housing bubble because of a lack of activity or mass-participation. The housing bubble has had its mass participation phase (2000-2008), and prices are now soaring again, so it is not surprising that fewer people can participate. Rather than suggesting housing is no longer in a bubble, lower participation may mean the bubble is running out of fuel and is a stage closer to popping. Either way, the pressure is on for anyone buying a house.
Howard Archer is absolutely right that we are still some way off a housing bubble. Only London is nearing bubble territory.
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