The problems facing this country are multiple. One problem is the shortage of housing.
This is due in part to the fact that 500,000 homes are currently empty and in need of refurbishment. This is one problem that will need to be tackled through investment.
Because of the economic crisis there is a credit shortage and banks are reluctant to lend to prospective home buyers. The deterioration in savings rates has increased the burden on buyers who are trying to save for a deposit on their first home.
The Government’s taxpayer backed loans and state sponsored subsidies are economically deficient as the state is increasing its national debt burden if these loans default.
In helping home buyers, the common sense solution would be to implement the right to buy revolution to private home buyers. Low interest rates will not be permanent and once those increase mortgages will become more expensive.
The home buyer discount would be set at 11 per cent and would be indexed in line with inflation – the housing sector is volatile and there needs to be some stabilisation. We need to increase home ownership and credit at affordable levels.
We cannot base our financial security on assumptions because the interest rates can be volatile and we can not have repossessions disrupting economic expansion.
The housing shortage will continue specifically in our towns and cities with overcrowding being a major problem.
At local and national level there needs to be a principle in housing; local homes for local people. We can not continue with fewer and fewer homes.
Immigration has been one part of the problem and that is one reason why we need proper immigration controls to regulate the entry of new people into the country.
The Government continues with gimmicks.