I saw this bulletin at 6am and then again at 8am. The script for it could have been written by the property industry spin doctors themselves and in today's corrupt, crony Britain its what you'd expect especially after a week in which property shares have taken one hell of a beating.
Before I even address the article, lets remind ourselves of what we on this website know full well : the current plight of property developers like Barratts is that of the snake that's eaten its own tail. By playing their part in ramping property prices, the developers have become victims of their own behaviour. What's gone around has come back around.
The report, for those who haven't seen it, states that the UK could now be facing its worst housing crisis since the 1930's. Sounds like their finally admitting what we've known here for ages, right?
Be under no illusion. This report is nothing but a thinly veiled attempt to garner support for the building industry by suggesting that they have become innocent victims of circumstances beyond their control and deserve our sympathy and support. They are using this article to have us believe they have had nothing to do with the Credit Crunch. We here on this forum know they've been one of its leading protagonists.
While this report happily ignores the very real and tragic plight of a lost generation of first time buyers, it is so poorly written it counters its own arguments: in case you didn't notice they even had to change spin doctor between bulletins as first one was so poor.
The report implied that if the builders go out of business there'll be an even bigger shortage of homes suggesting high prices will be sustained because of fewer properties coming on to the market.
How much more confused could that argument be? If that argument were true then some VIs - but not all - would want it to happen so why would a building industry spin doctor put that argument forward? A-hole! In the real world, if builders do go out of business there will be a rise in unemployment and reduction in economic growth so prices would more likely fall.
They've also dropped in the suggestion that we should now switch to the German housing model, namely renting out their unsold houses. My response? Drop dead!
And now that its suits them, they're even trying to play down the notion of property ownership - an aspiration they themselves turned into an obsession. Well, what's sauce for the goose is sauce for the gander, I say.
Now the developers are bricking themselves - pun intended - they suddenly want to change the rules of the game? Get stuffed.
Rarely has there been such glaringly obvious yet such poorly argued spin from the VI's that's masqueraded as a genuine new article.
Basically the message was : now the banking industry is f*cked and you can't get mortgages please rent our houses.
F*ck 'em. Let 'em fry.