Correct Policies For Resolving The Housing Crisis Have Not Yet Been Implemented

Correct policies for resolving the housing crisis have not yet been implemented. More work needs to be done in order to resolve this crisis.
There are two specific indicators both showing that the correct housing policy adjustments for economic recovery have still not been implemented.

The fact that the existing financial stimuli for kick-starting the British housing market have, if taken together, instantly resulted in higher house prices – the very opposite of the result which ought to be sought in the teeth of what is the toughest financial climate which the western world has faced since the dark days of Hitler.

If one were to take a judicious step back from simply welcoming increases in house prices whenever they manifest, the promotion of general affordability would be seen as being by far the better thing to promote for stimulating an improved circulation in housing transactions – not more price increases!

Price increases in relation to housing are an economic NEGATIVE when it comes to getting our economy going, because for every extra pound spent buying roofs over their heads, people will be unable to spend that on buying goods and services. This will impact negatively on our economic recovery and the effects of this lack are being felt equally instantaneously.

Richard Whitehouse of Cornwall Live interviewed The Rt Hon Robert Jenrick MP for Housing, Communities and Local Government Secretary, on Thursday September 3rd. He wrote in their online newspaper the following day:

A major concern has been the impact on the provision of affordable housing with the new proposals suggesting that developments of less than 50 homes will not have to provide any.

Cornwall Live asked Mr Jenrick about concerns in Cornwall around what precisely is classed as “affordable” with many people finding that homes marketed as such are still out of reach.
“We asked whether there was anything that the government could do to try to help address the issue.”
Mr Jenrick did not answer the question directly but said the government was trying to provide more affordable homes.
He said: “The thrust of our policy is to build more homes and by doing that, we will make more homes available for all types and tenures in all parts of the country but we are also doing specific initiatives to address the challenge.”

In response to this I’m saying the explanations given on this web site clearly explain why these proposed new policies won’t achieve the results which are hoped for. I give the following reasons to help explain my viewpoint:

The fact that house prices are now at an all time high, when the economy is at an all time low, clearly shows that the present financial policies of boosting the housing market are not only unnecessary but are indeed quite unwarranted?

We need price ‘reality’ within the housing markets across all regions, in order to stimulate house ownership, not more and ongoing pricing excess.
Our housing markets are being driven by abject profiteering rather than by need and so are badly skewed, economically speaking.

Price rises do not indicate more sales or housing completions – quite there reverse!
They suggest less and less people being able to complete purchases.

They allow developers to afford to build fewer houses and still make their projected sales figures.

They suggest desperation on the part of wealthier buyers to get onto the housing ladder. That is certainly not solving the housing crisis.

For more information about how to get the housing markets across all our regions working more efficiently and more economically, please see our leading article:

The House Price Virtuoso Solution (otherwise known as The Hendry Solution)

The House Price Virtuoso Solution

 Full details of our proposals for properly reforming all housing markets in England and Wales.

Posted by: Peter Hendry, Housing Valuation Consultant
Author of:– The House Price Virtuoso Solution

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