Tax rises that kick in today will reduce what homeowners can borrow and potentially send house prices downwards, experts have warned....
says the Torygraph under a headline about rises in National insurance meaning that buyers will be able to borrow less and the strapline,
Sellers will have to cut asking prices as tax rises hit buyers' ability to borrow
Now just consider that for a minute. The only people worried about the price of houses are buyers and they have already been reassured that their ability to borrow less will be matched by a corresponding fall in prices, but the conditioning is so strong that even buyers think a fall in prices is a bad thing, uniquely amongst anything that they would want to buy. "Oh, no, I'm going to be paying less for my new house than I thought! Disaster!"
Another point this article makes to which the conditioning blinds us is that house prices are proportional to what people are able to pay, so that the cut in prices is completely illusory, the only difference it will make is to the banks, who will be getting less interest....
...in case anyone was wondering why we have this obsession with house prices in the first place.
Debate Magazine
