Do you trust governments with monetary policies to control property prices?

Discussion in 'General Property Investment Discussion' started by realdeals, Jul 12, 2018 at 8:42 PM.

  1. realdeals

    realdeals Member

    In the UK the government is making a real hash of Brexit which prompts the question, do you trust politicians/governments of the day to introduce monetary policies which will control property prices (avoiding boom and bust) in the longer term?
     
  2. Longterminvestor

    Longterminvestor Active Member

    The problem here is that, whether Conservative or Labour, ANY political party will do what is best for its supporters and not necessarily what is best for the country. Unfortunately that is how the political system works :)
     
  3. FWL

    FWL Member

    Politicians huff and puff to grab the attention of would-be supporters but at the end of the day money talks in the world of investment. If tax charges connected to the buy to let market, as one example, increase to levels which are unsustainable for investors then they will simply walk away. They will find a new market, switch their funds into that and the UK government will be left with even less social housing/private rental properties than it has today. At some point, the tail will start to wag the dog and the politicians will eventually need to listen to investors. Politicians like to think they are in control but it is investors who effectively “make markets”.
     
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