Government Housing Think Tanks ! (13/09/2016)


This headline made me chuckle - ‘Think Tank says developers to blame for housing supply crisis’. I wonder how much that think tank was paid to come up with that particular pearl of wisdom. It really isn’t rocket science, when will the government (of all persuasions) realise and accept that the basic rule of school-boy economics regarding supply and demand applies. The developers will not release too many houses/dwellings onto a market place due to the fact that the greater the supply, the cheaper the sale price resulting in lower profits for the developer. It will not work. Any way they dress it, the developers are there to make money - they do not build houses from the goodness of their hearts.


There needs to be some brave thinking at these ‘tanks’ to combat the problem of shortage, beating the developers over the head with various ‘sticks’ just won’t work. The increase in the contribution paid by all developers to enable a scheme to obtain planning permission is in some areas almost bordering on extortionate. Again when will people realise the more you charge the developers, the more they will pass those costs onto the end sale price, thereby pushing the ever increasing price of housing away from the average Joe (or Joyce).


If the government ‘tanks’ are so disgruntled by the lack of construction of homes for everyone then why don’t THEY build some council houses to increase the supply to the market place. That would make the developers sit up. They probably won’t do that for a few reasons, namely they haven’t got the money, don’t have the backbone to do it and would probably mess it up. Surely they could use some of their ‘quantitative easing’ money and class it as a large infrastructure project (like HS2) perhaps. This would kill a few birds with one stone, increase jobs in the construction and associated industries, provide more apprenticeships and more affordable houses where they are needed. Or is the government waiting to open HS2 and just ship people around the country on the train ! Only problem with that idea is the cost of train fares ! If so then probably not the best idea, but great value for money, one train-set for about twenty billion.


In the past believe it or not, people have said that I should be more positive about the government. One thing I can be positive about the government is that they won’t solve the issue.


Cheer up everyone it will soon be Christmas !