Tony1951 Show full post »
Clibit wrote:

I hear what you are saying and I have friends who say similar. But we do have significant numbers of people who cannot afford accommodation, because rents are so high, and mortgages unattainable. We have 320,000 officially homeless, and the real figure is higher, as those people are all registered somewhere. Then there is a large number of people who just about pay the rent but have very little left over to pay bills and buy food. We supply holiday hunger programmes and we supply schools in certain areas, and the feedback is very much that kids eat very little in some situations other than what they receive through these schemes. We supply food banks. I have visited some of these schemes myself. I don't know if it's as bad as it was in the 1930s or whenever, but there is genuine suffering, an inability to buy food and fuel, and it has got a lot worse since 2008, certainly. I think it's not right to deny the problems some people face, when there is so much wealth in parts of our society. Capitalism has certainly given us all sorts of benefits, but it has equally created a mass of problems too. Dietary problems, mental health issues, environment etc.

We have a serious problem of very inadequate supply in accommodation. 

It has been caused by two linked failures of government going back to at least the mid nineteen nineties - a rapidly growing population and a complete failure to develop affordable housing to accommodate the people we have living here. If you have a universally required good that is in short supply, the costs of acquiring that good rise rapidly. The more vital the good is, the more the price will rise. This was just about the first lesson I learned in economics at school. The chapter heading was 'Supply and Demand'. In 1995, UK population was 58.02 million. Last year it was exactly 8 million more at  66.02 million. The vast majority of that rise comes from large scale inward migration. British women don't have enough babies to cause anything but a loss of population these days. The fertility rate of British born women is only 1.6 and you need just over 2 for a population to stay the same. Over this period, house building has been catastrophically low meaning that we have 13.8 % larger population occupying basically the same number of dwelling units. Housebuilding in that period was at more or less the lowest rate since the nineteenth century. This is why the young are paying about twice what my generation paid as a proportion of their income on housing costs. It applies to rents as well as owner occupation costs because they both are operating under the same economic forces.

I would say that instead of wasting about £52 billion on HS2 to cut a few minutes off the travel time between London and the North, the money should be spent on building a half a million affordable homes. If these were sold on 50% half ownership, or sold to housing associations to rent them, you could build a million homes for that. This would crash the housing market though which is why no government will do it.

We are governed by idiots, some of whom are more dangerous than others.


By the way, just as an illustration of how great the problem is in that population rise of 8 million, the population of Brimingham, our second largest city is one million. We have increased our population by eight Birminghams since 1995. Where are the eight new mega cities? They don't exist of course, which is why we have this problem. This is the fundamental cause of the problem. It is nothing to do with Buy to Let or anything like that. Buy to let only started to exist when the rental prices being offered made it worthwhile for people to invest their savings in property. If we built enough houses, the returns from Buy to Let would collapse and the landlords would sell up.
I am off grid until the weekend.
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Tony1951 wrote:

No hijack at all mate. It was me what did it. 😉

It would have been funnier if bollock him [frown][rofl]
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I've not been able to follow it ... getting in from work and thinking TMI ... I can't cope with that.
Multi-tasking, easy, drink beer and watch telly.
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