Bricks without straw
I was travelling yesterday so no blog I am afraid, but I will do a Sunday one instead.
The latest news from the housing market is desperate in two respects. The chance of buying a house for the young is getting increasingly remote and now the news is that renting is reaching a new crisis.
Mea culpa, I should have seen this coming. If you build too few new properties and then let buy-to-let ”investors” buy up the stock, eventually even the rental market will collapse. Too few houses are being chased by too many buyers and renters.
The rentier economy is like that, increasing wealth for the few, no or rubbish accommodation for the rest. A former colleague of mine lamented the fact that her chance to buy a house fell through as the rent she was paying was 4 times the mortgage on a home. Someone is making obscene amounts of money
This is the consequence of 40 years of failure to build and right-to-buy.
Since both candidates for the Tory leadership tried to outdo each other in their nimbyism, there is no relief in sight in the next few years, at least.
But government could encourage house building easily, let councils sell some of their land with planning permission to fund social housing on more land.
Until then the housing market will get worse, until the young rebel or vote.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.