Sunday, Mar 11, 2007
Is this government capable of running anything?
Daily Mail: Prezza's £60k 'affordable' homes sham
John Prescott's flagship scheme to build affordable homes for just £60,000 has been exposed as a sham after the first properties went on sale - for at least £175,000 each. Says it all really!
Posted by uncle chris @ 08:21 PM (162 views) Add Comment
6 Comments
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1. paul said...
"Two jags was heard to yelp "Eeey-op bloody 'ell - Ave been expoosed as sham again - am off to play crowqwet - where's me driver?"
If there is anyone in government who represents the incompetence and indifference of New Labour it's two jags prescott.
2. enuii said...
£60K would be the actual build cost for materials and labour only, this figure is the typical price excluding kitchen/bathroom fittings for any 3 bed townhouse type build. So in effect (excluding land costs) Prescotts criteria have in all probability been met. The rest is down to land prices, legal and adminstrative fees, taxes including bunging the local council money for 'road improvements', marketing, risk mitigation and of course at least 25% profit for the developer.
3. talking rot said...
Golly. A news-grabbing interventionist political ploy which ends up as a can of worms. Who'd have believed it from New Liebour?
4. Chilli said...
The real problem I feel is that developers are incentivised to basically hold land. The longer they hold the land, the more of a shortage in homes, and therefore the higher the value of homes and therefore the higher the land they have on their books. If they are prepared to wait a few months they are guaranteed a profit.
When eventually there is a gradual decline in the value of land/houses, developers will want to hold land for the shortest time possible, and won't be incentivised to build houses that are going to be worth less once built than when they started building. On the other hand, maybe they will have a lot of land on their books and want to get rid of it and the most profitable way is to build houses (I hope).
Either way, the whole system just doesn't work. It almost guarantees that houses stay at a very unaffordable price. It doesn't even really take that much to build one.
5. denzil said...
Why am I not in the least bit surprised?
More Labour crap.
I heard a story on Radio Bristol this morning about Labour MP for Bristol South, Dawn Primarolo. She was called "Red Dawn" when she became an MP and was vociferous in her anti-war, anti-nuke stance. By all accounts she will be supporting Blair this week in the vote on renewing/replacing Trident which flies in the face of her early stance.
Everybody has a right to change their opinion but what really disgusted me was that Radio Bristol asked "Red Dawn" for an interview over the weekedn about Trident which she declined because her schedule was full. Radio Bristol then tried a different approach, they rang Dawn and asked her for an interview over the weekend regarding a highly successfully youth centre which Labour have put in place. Strangely enough Dawn was available for this interview.
6. rich said...
Denzil, this is a perfect example of why it's sad that the House of Commons have now decided we need to fill the House of Lords with their own kind, i.e. career politicians. It really is the last thing we need.
Apologies for the tangent from the topic.