Feb 04 2007
Response to inflation and house prices
<p>A little bit of inflation may be fine, but the problem is accelerating inflation. Once you start to allow a price/wage spiral you enter dangerous territory, which will end with high interest rates, more unemployment, and businesses deciding to go elsewhere.</p>
<p>Yes, rising house prices are good for those who own houses, but a nightmare for those wanting to buy. Recent levels of house price increase have high, especially in central London over the last year. To deal with this problem we need action to tackle both demand and supply.</p>
<p>We are not building enough homes to cater for the 200,000 plus new migrants?? entering the country every year. That is why the Conservatives are calling for proper border controls and limits on numbers coming in. We also need to encourage the construction of more properties, whilst allowing communities that feel they cannot cope with more development to vote for that and decide that on a local level.One proposal which would help would be for developers to compensate householders for loss of amenity if they wish to build near them.</p>



















John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
Sounds sensible enough to me. Thank you for taking the time to answer.
[Reply]