
The Bank of England’s shifting stance on house prices has big implications - lifeisstillgood
https://blog.usejournal.com/the-bank-of-englands-shifting-stance-on-house-prices-has-big-implications-57350d79fca0
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ohiovr
Housing prices cannot rise forever. I'm glad there are people in the banking
industry that are not oblivious to this. More money must be spent on housing
even if you rent. This means less money can chase other goods and services.
That is the reason it looks like we have low inflation. The puzzle is now
complete.

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lifeisstillgood
Tldr: House price increases (in the UK) over past twenty years can not be
explained by lack of supply (so the build more houses movement is likely to
fail). The reason seems to be houses as an investment asset - and the rise in
prices has been accounted for by the decrease in cost of money.

In other words solving the housing crisis is not a function of building more
houses - it needs (and this is not in articles / Mulhairn analysis) active
discouraging of houses as asset investments (taxing second homes etc) and
focused welfare services to stop people falling off the bottom of the ladder.

It's going to be a bumpy correction across the entire Wesrern world

