2. Orwell said...

Sorry but I cannot see how they will be building new council houses. We all know that one of the reasons in the 1950s 60s and 70s are low property prices was the competition offered and the local authority sector. The same analogy also rings true for petrol prices and BP who kept prices low in the 1970s throughout inflationary eras. The local authority rental sector kept housing prices reasonably low. Local authorities were in competition with private speculators builders and landlords and hence the reason that rents were kept low, or maybe it was the other way around that local authorities instilled the competition and private spectators and builders and landlords were in competition with local authorities but in any event rents were much lower. When councils could offer out housing stock as a cheap level of rent than this added competition meant that RPI could be kept low and we all remember that it was very important then to keep the RPI low because of the high rates of inflation. We now know that there was a cynical plan, namely to deliver the whole lot, lock stock and barrel over to the private property speculators and landlords. In effect to privatise the whole house building process.

Aneurin Bevan would be turning in his grave. It so happens that Gordon Brown may actually be saved from having to face up to this reality by a moderately small fall in house prices are only moderately small, perhaps 20% only.