From: "Stephen Burke" 
Newsgroups: uk.finance
Subject: Re: Pay packets dropping?  What does this hold for the buy to let market?
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Date: Sat, 2 Aug 2003 22:24:53 +0100

System Prompt  wrote:
> I have been reading the various messages and responses to the property
> crash thread, some saying yes, some saying that property can only go
> higher.  I was reading on the web and came across the following
> article.  What effect do you think this have (if any) on the UK
> housing market?

As a one-off, not a lot, but if you think taxes are going to rise year on year
it may be different. Next year's budget will be interesting; the government
has a shortfall because the economy is weak, it has already promised higher
spending, and it will be one year from an election ... my bets would be on
higher borrowing until after the election ...

> By October this year, the average household will be £775 better off in
> real terms than in 1997, while the average household with children
> will be £1,200 better off, he said.

Not so good for the average household without children, then?

> It is puzzling that they would compare the standard to 1997.  I
> understand the whole Conservative / Labour thing but comparing
> standards over a 6 year gap is a bit of a stretch no?  I would think

I imagine it's because there was an austerity regime for the first three years
and taxes didn't start rising until after that.

-- 
Stephen Burke