Look. Don’t blame me for all the politically flavoured blog posting from eMoov of late. There’s a big election soon apparently and so it’s topical, ok?
And so with that in mind, take a guess as to which political party is the best at making your house go up in value?
The Tories, naturally.
Actually, it’s not Thatcher, Major and Co (nice name for an estate agency?) but in fact Blair and Brown (also a nice name for an estate agency?) that win the Government property profit award.
Seriously, you would think that free marketeers and true advocates of capitalism to the max, the Conservative Party, would be the guaranteed deliverers of property growth.
Between 1979 and 1997 house prices rose by 146% (Source: Nationwide).
But prices rose 230% between 1997 and 2009 with Labour at the helm.
Indeed Mr Blair himself has since reaped the benefit of such skywards value increases in respect of the Connaught Square home that he bought for £3.65 million in 2004. It’s now worth around £6million and is in addition to the other five homes that he owns in London, Bristol and Wotton Underwood in Buckinghamshire. A portfolio valued at £12million or so.
The protracted decline in house prices of the early 1990’s didn’t help the Tory record I suppose and it’s worthy of note that the largest increase in a single year was under Mrs T in 1989 at a sustainability bashing 31% up on the year before.
However. Lest we forget that the entire banking system and indeed the economies of the Western World just came within a whisker of utter catastrophe, threatening to plunge the planet into decades of fiscal armageddon, all caused by over heating home values fuelled by irresponsible lending, boasted of and encouraged by our politicians of the day as ‘solid economic growth’. Hmmm…
So maybe the Labour record on house prices that looks so impressive at first glance is actually not such an accolade after all, unless you hanker after a sort of Zimbabwean approach to economic governance? And unless you’re Tony Blair of course.