The Institute for Public Policy Research is urging the government to freeze house prices. The IPPR says a five year freeze would ‘reset’ house prices and make housing more affordable, as housing costs would fall in real terms as other prices and wages continued to rise.
Under the IPPR’s proposals, house prices would be able to rise again ‘only after expectations of constantly rising house prices have been ‘reset’.’ The initiative is part of a wider plan to re-balance the economy away from finance in order to avoid another financial crash.
Chiswick already has, thanks
They’ll be pleased to know that Chiswick is doing its bit. Paul Cooney, Director of sales at Horton & Garton, Chiswick says prices have dropped ten percent over the last 12 months and 12-15% since the EU Referendum because of the lack of buyers. “People are sitting on the fence, seeing if things are going to get worse” he says, “and last night’s Cabinet meltdown isn’t going to help”.
2014 was the high point. “The market was bonkers”. There followed a period of “Mexican stand off” in which sellers held out for a higher price than buyers were willing to pay, but now he says sellers are more aligned with what buyers will pay. He’s just sold a house in Somerset Rd for £955,000 which was originally on for £1.050,000. “If you want to sell, you have to offer your house at a price which is going to get buyers excited.”