YEP Says (December 14): Feel-good factor of house prices masks danger

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IF YOU are lucky enough to own your home, a rise in house prices is sure to make you feel good.

Feeling good about your financial security often translates into spending more at the shops.

Spending more at the shops is one of the driving forces in our economic growth.

Simple, but deadly. If your the value of your home falls, it is bound to have the opposite effect.

We feel less confident about our financial security, which usually means spending less at the shops.

Spending less at the shops is bad news for retailers, who respond by laying off staff.

Fewer people in work means lower tax receipts and the spiral continues.

Britain’s economic cycle is inexorably tied to the fortunes of Britain’s housing market.

The unyielding patterns of boom and bust are so closely linked to supply and demand in the housing market.

Rightmove’s report that Leeds has just 3,500 properties for sale - 30 per cent down on the norm - clearly illustrates the mismatch.

Politicians talk about a new wave of housebuilding, but no-one wants new homes built near their gardens, schools and hospitals.

The bubble has to burst at some point. We hope the taxpayer isn’t left footing the bill again.