Tuesday, August 07, 2007

the market has failed

House prices are set to rise by 40% in the next 5 years. If you, like me, aren't on the property ladder now then you, like me, never will be. Its a torrid state of affairs but there simply aren't enough houses to buy. Last year more houses were bought on buy-to-let mortgages than were built. There are three ways that the government can improve the stock of quality, sustainably constructed housing: They can institute an unprecedented building program; they can relax planning laws so that people can build their own eco-properties in green belts or they can tax the shit out of second homes and buy-to-lets. The problem is, I don't see this government having the balls to do any of this. Meagre progress in the field of eco-homes in Pembrokeshire still demand that people are 75% self-sufficient. The 3 million home building program the government is wankingitself off over has already been damned by the National Housing Federation, who say it will bankrupt them. And can anyone really imagine that Brown is going to take the liberal, egalitarian step of using progressive taxation to penalise second home owners?


Addition:
So, if I buy a house now for £100,000, in five years time it will be worth £140,000. This will produce an income of £8,000 a year simply through appreciation of my property (less the 2% inflation but I can't be arsed to work that out). That's pretty much half of my annual income again. Fuck! I'm going house hunting!

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