House prices
Wandering around Notting Hill made me think of another good reason to vote Conservative. Cheaper houses for the working man. This is good for me as I want to buy a house, and you can always rely on the Conservatives to bring prices down. In the first two years of John Major's government prices fell by 15%, which with inflation at between 11% and 4% represents a real fall of about 25%. The first two years of Thatcher saw prices rise by 14%, but Thatcher managed to get soaring inflation of 30% over that period, so saw real declines of 16% (her last two years were far worse -- 20%+ nominal fall, 30%+ real fall).Hence when IDS takes over (hopefully earlier than in the four years he is predicting) we can safely expect another decline in real terms of about 20%. As inflation will only be about 4% over that period we can expect nominal declines of 16%. This should take the average London house from 210,000 pounds to under 180,000.
posted by Matthew @ 8/25/2003 09:19:00 PM
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