...and households on average incomes will be able to afford to get on the housing ladder again:

From the Guardian House prices suffer biggest fall in 5 years as mini-boom stalls:

Rupert Jones and Angela Balakrishnan
Friday July 7, 2006
The Guardian

House prices fell by their largest monthly amount for almost six years in June, lopping £2,200 off the value of an average home, according to Britain's largest mortgage lender.

The 1.2% decline reported by the Halifax yesterday was blamed in part on householders feeling the pinch from higher utility bills and fears that interest rates were set to rise. The distractions of the World Cup are also likely to have caused what may be a temporary lull in buyer interest.

But there's another interesting factor at work in here:

"Substantial increases in utility bills and above-inflation council tax rises are putting pressure on householders' finances, with the majority of the impact of these increases yet to be felt," said Mr Ellis (Halifax)

Utility bills - well it certainly ain't telecommunications costs, so presumably it must be energy. Our houses aren't fit for a post oil-age world, if that's what we are about to enter. The signs are not good on energy costs - already elsewhere (though I can't find the link at the moment) it was reported that consumer spending estimates have been revised downwards because people have 10% (yes, a whopping TEN per cent) less disposable income for goods and non-energy related services because they are feeling the pinch from higher energy costs.

And note the property tax angle too. If the Lib Dems remove all vestiges of domestic property tax, what do *you* think will happen to house prices, everything else being equal?

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