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Posts Tagged ‘Help To Buy

The house price/general election nexus

One of the reasons I gave up being a full-time business journalist in favour of a career in investment was the fear that I might be falling prey to the all-pervasive cynicism to which so  many members of the media sadly seem to succumb over time. Excessive exposure to the doings of government can have that effect on you. I could not resist a wry smile however at seeing the attached chart, published by the economics pundits at Capital Economics. It shows the close correlation  that exists between house prices and the political fortunes of the party currently in power. As might be expected the relationship appears to be both powerful and close, and, I fear, is not at all accidental.  Political party strategists know full well that consumer confidence, in which rising house prices are the key component, holds the key to earning electoral victory.

chart2 house

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