Curb house price rises

Published: 27 August, 2010

• HYPER housing inflation may feel good for some home-owners, but it is causing boom and bust in our economy.

Rising house prices eventually cause excessive over-borrowing. When this happens there is a real risk of bust.

The only way people have been able to pay over-stretched mortgages is by having interest rates held very low, but those people with savings schemes, pensions and endowments are paying the price.

They are suffering extreme devaluation while home-owners see a rise in the value of their properties.

Housing inflation is pricing more people out of the market, creating a surge in demand for affordable housing which cannot be met.

Many working people would love to own their own home, but are prevented from doing so by ridiculous prices.

In Islington, former council flats sell for more than £300,000. This is causing resentment, as everyone who works should have the right to buy.

We need to bring in controls to regulate the costs of the market and rented accommodation or we will all go down the pan with it.

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