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Archive for the tag “building”

The Cameron Cancer

Would you pay £47.51 for a chicken? Of course not! If the cost of chickens had increased at the same rate the same rate as house rentals over the last 30 years that is what you’d be paying.

A majority of people believe that benefits should be cut, they have swallowed the Tory lies. Housing benefit rose by £1 billion last year and you are lead to believe that it went to the lazy workshy or to single mothers or to drug addicts. In fact 98% went to people who are actually in work! The continuing shortage of housing and landlords greedily ripping off the State are the reasons behind this incredible increase; to cut benefits is to tackle the problem from completely the wrong end.

Cameron’s answer is to compel thousands of our fellow citizens to move hundreds of miles from their homes, their friends and families, and to drag children away from their schools. Under 25’s to be forced to go home to their parents after further education or training rather than starting employment (if they can find any) on low wages because they simply can’t afford a roof over their head. This is the economics of the madhouse.

The arrogance of this extremely wealthy Prime Minister beggars belief, in that he thinks that by kicking away the crutch of a cripple it will make him walk. He cannot countenance the real solution as this would possibly affect his and his rich friends grasp on the national wealth. Embark on a massive house building program which not only employs building workers but also manufacturing by way of the building materials but also every new home will need carpets, curtains, furniture, the list is almost endless, creating even more jobs. Rents to be controlled by law and the National Minimum Wage increased substantially to catch up with what it should be worth. This would also put more of the burden onto employers rather than the tax payers.

It was announced today that government borrowing for the month of May increased by £2 billion more than expected due mainly to lower tax receipts. What the hell do they expect? 2.6 million out of work and 1.4 million in part time work wishing they were in full time employment and therefore not paying any or very little income tax. This regime is a cancer spreading over our land and the only therapy that will work is to cut it out and soon.

It Could Have Been Better

So the pre-Budget announcements are over and quite obviously the 2.5% reduction in VAT costing around £12.5billion will be largely wasted. It will do little if anything to stimulate the economy that’s even if traders pass it on and don’t simply raise their prices slightly to boost flagging profit margins.

It could have been better spent. We have around a million people who are homeless or living in sub standard housing. Freeing up Government owned land for social housing and giving local councils perhaps more compulsory purchase powers it would be possible to easily build a home for £100,000 which means that 125,000 additional houses could be built. The employment derived from this would be enormous and not just builders but all the manufacturing of materials, most of which would be British made. Add to this all the carpets, curtains, white goods, garden equipment etc purchased as people moved in and the stimulus to our economy would be huge.

The important part of the above is ‘social housing,’ houses for rent and permanently for rent thus replenishing the housing stock following the disastrous ‘Right to Buy’ policy of Thatcher and continued by successive governments. It would have the added bonus of helping house prices to stabilise at a more sensible level and help to prevent a future credit binge based on ever increasing property prices.

Credit Crunch & Housing

Due to the shortage of finance within the banking and building society sector and the rising interest rates, the building of new homes is slowing dramatically. The big building companies such as Barrett and Bovis are cutting back on developments and even leaving the interior completion of homes until sales are agreed.

Many people will soon have their mortgage rates raised dramatically when their fixed term agreements come to an end. Coupled with the down-turn in the economy and the general feeling of financial unease it is inevitable that a lot of distressed home buyers will find their houses repossessed, a fact confirmed by the Bank of England yesterday. The plan and hope of the Government to build 3million new homes by 2020 begins to fade.

However, if the Government could but see it, this can be a moment of opportunity. Land is the biggest cost for homes but the Government holds an enormous amount, particularly the Ministry of Defence, that just lies unused. If they gave (yes, gave) some of this land, where appropriate, via local authorities, to build homes for rent and not for buying then several things would result. Firstly and most obvious, there would be more homes for people to live in rather than a make money investment and with more home buyers becoming dispossessed there will be an even greater need for rentable homes. It will keep the building industry in a healthy condition providing employment and training ready for the inevitable but eventual upturn. A huge amount of employment depends on new housing, not just the suppliers of building materials but furniture, white goods, carpeting, decorating products and so on. Another benefit is that a vibrant public rented sector would put the brakes on rampant house prices in the future making for a more stable market.

Yes the Government would have to give financial assistance to the local authorities but this would be a lot cheaper in the long run than coping with the costs of unemployment, family break-ups, paying for people in hostels, B & B’s etc. and in addition keep on target for 2020.

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