The Government should borrow money for hundreds of thousands of new homes to solve the growing housing crisis, Sajid Javid has said.
The Communities Secretary hinted at a major shift in Tory thinking as he suggested the Chancellor should capitalise on historically low interest rates to fix the broken housing market.
Asked whether there would be a new housing fund to build homes, Mr Javid told The Andrew Marr Show: “We are looking at new investments and there will be announcements. “I’m sure at the Budget, we’ll be covering housing but what I want to do is make sure that we’re using everything we have available to deal with this housing crisis. “And where that means, so for example, that we can sensibly – you borrow more to invest in the infrastructure that leads to more housing – take advantage of some of the record low interest rates that we have, I think we should absolutely be considering that.”
He added: “I would make a distinction between the deficit which needs to come down and that’s vitally important for our economic credibility and we’ve seen some excellent progress, some very good news on that just this week. “But investing for the future, taking advantage of record low interest rates, can be the right thing if done sensibly and that can help not just with the housing itself but one of the big issues is infrastructure investment that is needed alongside the housing.”
Mr Javid, an outspoken critic of his party’s record on housebuilding, described the issue as “one of the biggest barriers to social progress in this country”. He also dismissed reports that the Government was planning to relax protections on the green belt, which would likely have infuriated many Tory members.
Sajid Javid, in common with many other politicians just does not understand the housing market. He states it is broken and in one sense he is correct. But his answer is incorrect, namely that you just build more houses. A simplistic answer to a more complex problem.
The problem is not that there are not enough houses being built, it is that too many of the houses being build are not used to house people!
At the same time, the incomes of younger households in particular have been squeezed by Government policies making it harder for people to afford housing.
No Sajid, you do not understand the issue!
[It seems the Labour party would build 500,000 houses a year!!!]