my blog

The best thing that could happen for most people is for the house market to crash. You might think I am mad but it's true. The British obsession with house price inflation is sheer insanity. We are heading for oblivioin. The higher house prices are, the more we have to borrow.

If you have a £200,000 house and want a £300,000 house you wil need to borrow £100,000. Conversely if house prices halved, you now have a £100,000 house and want a £150,000 house. So you only need to borrow £50,000. This is a £50,000 mortgage reduction.

This is not my idea, Evan Davies - BBC Eccenomics correspondant came up with the idea, read more here.