Gordon and House Prices

“I will not allow house prices to get out of control and put at risk the sustainability of the recovery.”
Gordon Brown, 1997 Budget Statement.

But Gordon did allow house prices to get out of control. Some of the housing market numbers are scary, the average house now costs 6 times average earnings – in London the figure is 10 times earnings. The historical long term figure is some 3 and half times earnings.

Is it any wonder that the average age of a first time buyer is 33 years old? Twentysomething families can’t afford a home of their own.

Yield models suggest* that house prices have to fall 40% to return to the long term average.

The simple truth is that in real terms it is now twice as expensive to buy a house as it was before Gordon promised he would “not allow house prices to get out of control”.

*Or rents could rise a corresponding amount.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Theresa May tells Bercow:

“Mr Speaker-elect, can I congratulate you on your re-election. At least someone got a landslide.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Happy Independence Day! Happy Independence Day!
Sun Cleared by Hospital Sun Cleared by Hospital
Exporters Order Books at 29 Year High Exporters Order Books at 29 Year High
Corbyn Refuses to Bow to The Queen Corbyn Refuses to Bow to The Queen
McDonnell Repeatedly Backed Far Left ‘Day of Rage’ Group McDonnell Repeatedly Backed Far Left ‘Day of Rage’ Group
“Soft” and “Hard” Brexit Terms Obsolete “Soft” and “Hard” Brexit Terms Obsolete
Hammond’s “Sound Money” Speech Sadly All Spin Hammond’s “Sound Money” Speech Sadly All Spin
Tommy Robinson Called British Muslims “Enemy Combatants” Tommy Robinson Called British Muslims “Enemy Combatants”
Corbyn Praised at London Hezbollah Rally Corbyn Praised at London Hezbollah Rally
Government Understaffed – Key SpAd Vacancies Up for Grabs Government Understaffed – Key SpAd Vacancies Up for Grabs
Sunday Shows Sunday Shows
Clive Lewis: “Burn Neoliberalism” Clive Lewis: “Burn Neoliberalism”
Corbynista Ultras Involved in Storming Kensington Council Corbynista Ultras Involved in Storming Kensington Council
CCHQ Already Preparing for Next Election CCHQ Already Preparing for Next Election
CCHQ Diverted Resources from ‘Safe Seats’ Tories Lost CCHQ Diverted Resources from ‘Safe Seats’ Tories Lost
Constituent Claims New Labour MP Called Her “Ugly B*tch” Constituent Claims New Labour MP Called Her “Ugly B*tch”
Corbyn vs Blair Corbyn vs Blair
How to Speak Like a Corbynista How to Speak Like a Corbynista