The landscape changed, approx 20 years ago, it was the Tories who basically set us up as a nation to be house owners. Until that point there was a fairly healthly council house type operation so those not wanting to own had a pretty high chance to secure a council house. With the easy low cost rent.
The housign stock of council houses was slaughtered and at the same time of course population has increased, so the % of council houses fell dramatically.
The buy to let crowd moved in and changed the face of rental, from being higher spec better properties (generalisation) they moved into the lower stuff, the stuff that people would traditionally have rented off the council. BUT and its a massive but they are after maximum return.
There is obviously an increase in social housing type schemes of various types, whether they will over time start to become the normal or remain very much a small niche we will have to see, but it will take a very long time to get there.
So people have been educated that owning their own home is right. It provides some massive security to them, ability to borrow some short term funds against the property if required. It also means come their retirement they will not be paying rent.
The government plus plenty of others are saying people are not saving enough for retirement, how much of that is down to having to pay rent when retired compared to owning their own house?
My personal view is that Labour perpetuated and probably worsened what the tories started, rather than allowing the proper correction the economy needed they tried to avoid it and artificially stopped the correction. The correction would have hit the overly inflated property prices hard as they would have forced a realism check onto people who borrowed well above where they should be, and those massively debt laden.
This happened a bit more in the States and in for example Ireland where the overly inflated house prices have been brought much more down to earth. I would bet my last dollar both those economies will see a faster recovery once it starts. The UK will be held back by the failure to allow adjustment, along with the breaking effect the attempts to pay back the massive debts will have on our economy.
An active and in balance housing market is a key part to any growth or recovery, we won't see it as we do not have that.
Most people who own propety would be horrified to see their rapidly inflating property value depreciated 20-30% but for most its wooden dollars, it only truly affects those who are in it to make money.
Affordable housing is a basic commodity to allow an western type economy to flourish, its not (or shouldn't be) seen as another way to make a fast buck. Unfortunately it is now seen as that, and as such it will hamper our economy for years.
Maybe someone could show me how the massive increase in house prices from Ireland benefitted most of the population or even the economy long term? You will strugle by the way since there is virtually no real benefit to those people, the only real benefit is to those who made a fast buck.
Every time i read one if your posts i just think how lucky we are that you are allowed no-where near any decision making.
