There is an immediate increase in governmental income from building fees, taxes on workers wages, and taxes on the sale and transport of building materials. Increased sales taxes can also be expected as workers spend their wages and the residents purchase supplies and services for their new homes..When house prices are rising rapidly, banks see an improvement in the value of their assets. They feel more confident in increasing bank lending and reducing their reserve ratio. The long housing boom of , was one factor that encouraged bank lending to increase. Some former building societies .
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