From: "Troy Steadman" 
Newsgroups: uk.finance
Subject: Re: ping Peter Saxton re "The Ripple Effect" - is 25% annual house price rise in SW London this year possble?
Date: 1 Dec 2006 09:37:29 -0800
   posting-account=R7WSowwAAAD53T0SHAPLFrX9g546w2I8

Ronald Raygun wrote:
> Peter Saxton wrote:
>
> > On Sat, 25 Nov 2006 19:29:35 -0000, "Fred"  wrote:
> >>
> >>This is only a theory, but when value of property goes up, it encourages
> >>home improvements etc which add a non-inflationary increase to house
> >>prices. However statistics don't include price increases through house
> >>improvements. A better bet is looking at the house price indices of new
> >>builds where things look far more stagnant.
> >
> > If prices went down wouldn't people be more likely to carry out home
> > improvements than move?
>
> Only if they were thinking of trading down or of becoming tenants.

I don't understand Peter's point:

If house prices went *up* surely people would be more likely to carry
out home improvements? Home improvements are relatively static in price
aren't they, so you get more "extra house" for your money?