Are house prices about to plummet?
The News Agents
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The Importance of Productivity in the Housing Market
Our productivity problem is very much tied in with this over emphasis on house prices. In many ways the problem is that we don't put our money into bricks and mortar, it's just to say we don't build enough houses. I think if the housing market were different, we didn't have this perpetual creation of illusory wealth then they might think more seriously about putting money into a business. There are two ways of addressing this, it's about supply and demand and the prices are moved by the balance between those two. The tax system is peculiarly favorable to investing, so-called investing in housing, but that's going to be politically virtually impossible to touch.
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