Monday, 1 October 2012

Housing Shortage

I see the despicable Mr Balls is jumping on the housing shortage as the latest sound-bite political crisis. I as well as most of the population know we have a hosing shortage. He along with the rest of his Labour Party chums did nowt about it when in government but now he chooses to shout about it. I see from an article on the BBC news the Tories Grant Shapps claims to be invested 20 Billion over this parliament and in the report I read he questioned what else can they do? Well Mr Shapps maybe why you are no longer housing minister. That task has fallen to Mark Prisk and I expect we will see the figures massaged to look like there is new money but Mr Prisk has already shown he can make spending a tenner look like he has spent a grand. Both Parties manipulate the finances to make them better than the opposition but we have seen neither Labour nor Tory have got the answer.
    So what can we do? I have a few ideas but I doubt anyone will ask me. Rents are to expensive and in being so they artificially inflating the house prices. The UK house prices are being kept high due to the rents available. If rents dropped house prices would follow. The average Joe may not be able to get a mortgage but he is being bled dry by high rents. Investors are able to put their cash into rented property and get a good rate of return as opposed to money in the bank. With more people unable to get better than 4% from the banks it is hardly surprising property for rent has become the new nest egg. Smash that egg and I believe we would have more money around, let’s face it if you are paying a huge rent you cannot be a consumer, and even today we are a nation of shop workers even if we not as once described a nation of shop keepers. If we buy or consume more we run the risk of creating more jobs. The only person earning out of rents are the landlords. If houses are cheap enough and people can buy them new carpets and curtains are needed. Pots and pans for a kitchen rakes and spades or a garden etc etc.


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