Tuesday, May 17, 2005

affordable housing in the uk

This is forever in the news, about so many people can't afford their starter homes etc, and there is a law stating that developments over 13 units have to have 25% of 'affordable' homes.

It's a little crass, IMO. developers are there to make money, and will try to make a certain amount per hectare/acre/whatever. The consequence of the law is that developers will try to make more out of the other 75% or bribe the councils [ sorry , but building a school or whatever the council decides is a good compromise actually does] .

It doesn't work- and should be left to the market. if people cant afford to buy/let then the prices will drop until they are able to- it's what a market does after all- and as Maggie Thatcher once said ' you can't buck the market' . So why try , it just distorts the housing scene and because new houses are tending to be upmarket [ how else can builders get that extra profit ? ] it tends to increase house price inflation as well.

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