In the real world the Governments push for more and more house building will not solve the problem the Government percieve to be the problem as they do not understand the basic issue – its not supply of housing that is the issue!
Moving from the delusional world that policy makers inhabit into the real world what will happen if more houses are built?
Lets say that developers ramp up building to 250,000 a year, about 80,000 more than required.
If the current rules on mortgages for first time buyers apply it will be difficult to sell to new buyers. The alternative is that houses are bought by those with the resources and then added to the private rental market. Some people might (if they can afford the rent) move from other rented property, which begs the question what happens to the empty houses?
Developers will be looking for ways to sell their excess housing stock – in some areas this will be easier than others. For example in London there is always the luxury market for foreign investors. In areas like Cornwall they will market even more homes to encourage people to move to the area or buy a second or holiday home.
But all these extra houses will be of little use to people looking for cheaper rents or mortgages.
In the most extreme cases we hear of the issue of more rough sleepers. Now its a little incredulous to think that the problem rough sleepers have is due to a lack of housing. All the evidence points to cuts in welfare, benefit sanctions and insecurity of tenure in the private rented sector as being significant issues here.
Government ministers need to stop reading the Noddy guide to housing and get real by looking at the evidence and coming up with some sensible policy proposals.