House price rises a 'good thing'

Halstead Gazette: Housing minister Kris Hopkins, right, pictured with Chancellor George Osborne, denied the Government was fuelling property price rises Housing minister Kris Hopkins, right, pictured with Chancellor George Osborne, denied the Government was fuelling property price rises

It is a "good thing" that property prices are rising, the housing minister has said.

Kris Hopkins said he and other homeowners "expected" their values to increase.

But he denied the Government was fuelling hikes with policies such as Help to Buy - and insisted more homes had to be built.

Mr Hopkins was pressed repeatedly on the BBC's Newsnight to say whether or not sharp increases in the market were positive.

"I think yeah," he told presenter Jeremy Paxman. "I bought a house and I expect the value to rise, and I'm sure you did as well."

Mr Hopkins said rises were "certainly part of the market", but stressed that prices were still well below the pre-credit crunch highs.

"We are nowhere near the peak at this moment in time," he added.

The Tory MP argued that Help to Buy - which has seen the Government step in to underwrite deposits - only accounted for 0.5% of transactions in the last quarter of the year.

But he accepted that the country was "woefully short" in terms of housing supply.

"I don't agree with the fact that we are stoking demand, I certainly agree that we need more housing," he said.

Comments (3)

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9:11am Wed 2 Apr 14

varteg1 says...

"I bought a house and expected the value to rise, as I think you did too"



That is the twisted logic his party has been addressing re the housing situation for the last few decades, ever since the Tory led mantra of the UK becoming a home owning democracy so spouted by Thatcher et al.

The real logic would be to say, a house is NOT a cash cow. it is a place to live and to which all have a right.

But that would n ot fit well with the money mania created by the selfish and greedy that we have all of necessity had to become, in order to pay for a next house should we be required to relocate.
Altruism is dad, all that matters is making a profit, but the situation could be, if not reversed, certainly it could be halted by the simple application of a tax on any mark up when selling a house, the overall effect being to stablise the housing 'market', so that profiteering becomes far less of an imperative.

I refer of course to prime residences, not just secondary property, as far too much of the problems in potential 'bubbles' has been caused by primary residencies being excluded from taxation.

If it is deemed necessary to accumulate tax levels via VAT, I see absolutely no reason to exclude tax on all property transactions.
"I bought a house and expected the value to rise, as I think you did too" That is the twisted logic his party has been addressing re the housing situation for the last few decades, ever since the Tory led mantra of the UK becoming a home owning democracy so spouted by Thatcher et al. The real logic would be to say, a house is NOT a cash cow. it is a place to live and to which all have a right. But that would n ot fit well with the money mania created by the selfish and greedy that we have all of necessity had to become, in order to pay for a next house should we be required to relocate. Altruism is dad, all that matters is making a profit, but the situation could be, if not reversed, certainly it could be halted by the simple application of a tax on any mark up when selling a house, the overall effect being to stablise the housing 'market', so that profiteering becomes far less of an imperative. I refer of course to prime residences, not just secondary property, as far too much of the problems in potential 'bubbles' has been caused by primary residencies being excluded from taxation. If it is deemed necessary to accumulate tax levels via VAT, I see absolutely no reason to exclude tax on all property transactions. varteg1
  • Score: 0

11:47am Wed 2 Apr 14

Jonn says...

Here we go again. Do these wan*ers ever learn? What happens when the bubble bursts?
Here we go again. Do these wan*ers ever learn? What happens when the bubble bursts? Jonn
  • Score: 1

12:57pm Wed 2 Apr 14

stardusziggy says...

what happens is more people get kicked out of their homes, and the banks get bailed out by the taxpayer,then the bosses pick up a fat bonus.
what happens is more people get kicked out of their homes, and the banks get bailed out by the taxpayer,then the bosses pick up a fat bonus. stardusziggy
  • Score: 1
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