The 99er
The Chancellor has a cunning plan to solve the housing crisis, by introducing 99% mortgages.
This is just a follow on from the Help to Buy scheme, tax payers will underwrite mortgages for first time buyers, who only need to find a 1% deposit. Thus increasing demand and therefore property prices. It is madness.
If you want to solve the housing crisis you need to build houses, increase supply and therefore bring down prices.
It is as if we have totally forgotten the credit crunch or even basic economics. Home ownership has been falling for decades now, and it isn’t because mortgages are difficult to find.
There is, apparently, enough space on waste land near transport links in the country’s green belt to build 1 million homes. Build them and house prices will tumble, but then we can’t have that can we?
Rising house prices are a human right for home owners, good economic news, for those on the housing ladder untaxed housing profits are their entitlement.
So let us spend tax payers money on boosting house prices. This will do nothing to help the young or first time buyers, in fact it will make things worse. It is just a bribe for home owners.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media