The net cost of housing is an economic negative when it comes to national economic competitiveness.
This is what Britain must seek to improve in order to be more competitive as an independent nation.
The solution to this is therefore, to reduce the net cost of housing.
This will not be achieved by ‘simply’ trying to build more and more houses everywhere. In other words, the true solution is not to build, build, build at all !
The actual answer to the problem comes from recognising that there is too much money sloshing around in profits from housing development and that this has been the case for some decades now.
In addition to this, if you choose to believe that the house builders of today, whom also own most of the land with the planning permissions for new housing, are somehow going to be persuaded to build and build, until their prices (and their profits) drop to marginal levels, that notion is simply not going to happen! They will just trim how much they actually build to accord with the profit levels which they shall decide to set as being their minima.
The real and only solution would be to resolve the ‘market economic’ aspects of the housing problem instead.
This can only be done by reducing the crazy amount of money going into the supplying of all housing as an large entity.
For more on this please read our earlier posts on The House PRICE Solution.
Posted by: Peter Hendry, a retired property valuer
Author of:– The House Price Solution
Please also note. Unless things change significantly along the lines explained, countless people will continue to experience considerable financial discomfort concerning housing costs. If you agree please sign our petition.
Your action in asking our government to properly debate this would help to bring about these much needed changes.
The link below opens the petition in a new tab for you to look at and sign.
The cost-effective way to stabilise housing affordability across the whole of Britain