edwin_m
Veteran Member
Also contributing is the expectation that houses will only ever go up at above the rate of inflation, and historically low interest rates until recently, so people were incentivised to buy and then to hang onto the biggest house they thought they could afford - and in some cases borrow more to buy to let. That's ultimately unsustainable but no government has been willing to deflate the bubble gradually, so it's probably now going to burst and lots of people will get soap in their eyes.Well, yes, I agree, but we're stuck on a vicious circle of not building enough houses, thus prices for both buying and renting getting silly, so people can't afford to take/do many jobs. so we get more immigration - which makes the issue even worse. The last thing you need when you get to this stage is to have net inwards migration of 600,000 a year, also looking for a place to live.
Brexit of course allows us to control that number whereas before we could not - but for some reason the Tories don't seem interested in doing so, despite their base screaming at them to do so.
One other thing Brexit would allow, that I don't think would be allowed in the EU, is to recognise that the housebuilders are not doing what the country needs (eg. with banking development land for years on end rather than building on it) and so set up a state-owned housebuilder to try to tackle the backlog. But the Tories aren't interested in that either, of course - though neither, I doubt, will Labour.
Tax cuts for the rich would make this even worse, as they would have more free cash to spend on property. In that way housing is the same as everything else, constrained on the supply side but the government is trying to manage it by choking off demand.