Home Economics Just How Damn Confused Is Phillip Inman Then?

Just How Damn Confused Is Phillip Inman Then?

Author

Comments

It’s entirely possible to argue that England shouldn’t be concreted over – wrong, but possible. It’s equally possible to argue that there are arguments in favour of reducing building in order to maintain the prices of current buildings. You’d also be wrong but it’s an argument that can be made.

But how damn confused do you have to be to argue that the Tories – Boris basically – both wants lots and lots and lots of concreting over of England but also is striving mightily to reduce supply and thus maintain prices? And yet that’s where Phillip Inman does find himself.

Property developers were never far away from City Hall and, to Londoners, it would seem construction projects were approved almost daily. The city is a sea of towers, most of them foreign owned and built without any requirement for affordable homes to be included.

So Boris hugely increased the supply of buildings in London. OK, compared to what prices would have been without the development prices are therefore lower. That’s how an increase in supply works.

To say that Britain is a giant property whirligig spun for the benefit of a closed group of Conservative party supporters is possibly overstating the makeup of the economy and its dependence on real-estate values.

But when so many agencies of the state have found their main job is to keep the housing market spinning, surely it is not such an exaggeration.

The Bank of England says it keeps interest rates at near zero to support small- and medium-sized businesses and the broader economy. But in truth it worries more about a fall in property prices, such is the power of a collapsing housing market to destroy consumer confidence and the balance sheets of high street mortgage lenders.

Huge numbers of baby boomers now own their homes outright and see the value of their property as a barometer of their lifetime achievement as much as a vehicle for inheritance.

Many of them like the view from their homes and refuse to sanction planning applications near where they live. Once called Nimbys – “not in my back yard” – for their disapproval of development in general, they are now the main target of this Tory obsession with property.

A new planning law will strip them of their right to question planning applications once areas are targeted for expansion.

Older Nimbys are already casting themselves as environmentalists in this new conflict. And good luck to them. The green agenda is a legitimate way to fight back.

Therefore everyone should be stopping development in order to maintain those high property prices?

Umm, what? We’ve the government that has done the most, in recent decades, to try to deregulate planning and thus increase supply – perhaps not all that well and with a certain lack of ambition but still – and this is all about trying to maintain prices? And also that when they try to reduce prices by increasing permissions then everyone else should oppose them in order to make housing more affordable?

Jeez, it’s almost as if he shares a newspaper with Polly, isn’t it?

SUPPORT US WITH A SUBSCRIPTION?

2 COMMENTS

  1. A simple fisk of that: Boris bad, Tories bad; therefore, anything done by Boris and Tories bad, no matter how incoherent the argument.

  2. The simple truth is that the youth can’t afford the houses that are available and turning renters into owners is an ideal way of turning Labour voting types into small ‘c’ conservative types who MIGHT actually vote Tory in the future.

    House prices have to fall for that to happen, either by their value being inflated away or by their values fallen due to increased supply. Neither of which will appeal to the boomers, but a house still functions as a home regardless of the value in the estate agents window.

    As for the mortgage providers, they need share the pain if house values fall rather than simply evicting the mortgage holders and placing the debt entirely on their backs when they inevitably default. Foolish lending is not just the fault of the borrowers, but also the lenders, even in the mortgage market. ESPECIALLY IN THE MORTGAGE MARKET.

    How else can mortgage lending return to the sanity of 3 x salary that allowed home ownership for the masses in the relatively recent past?

LEAVE A REPLY

Please enter your comment!
Please enter your name here

expunct

in British English
expunct (ɪkˈspʌŋkt)
VERB (transitive)
1. to delete or erase; blot out; obliterate
2. to wipe out or destroy

Support Us

Recent posts

Expunct comes of age (sorta)

Today is the proper one year anniversary of the launch of expunct. It's been a rollercoaster but we wanted to create a site to...

We Can Help Salon Out Here Over Abortion And The Biden Administration

It's entirely true that abortion is one of those difficult questions. It's even true that the answers rather divide Americans. However, it's still possible...

Nick Dearden Really Is A Ghastly Oik

Dearden is from Global Justice Now - the usual bunch of Trots who never quite have left mother's basement. Their political views haven't advanced...

So Here’s The Actual Complaint About Amazon’s Diversity

It's possible that Amazon is simply packed full of thuggish racists who delight in keeping the poor folk down. Possible, even if perhaps a...

Government Health Care Causes Corruption

This isn't what Transparency International quite means to say here but it is indeed what they are saying. Government provided health care leads to...

Recent comments