Wednesday, September 3, 2008
“Myopic analysis in the media and politicians’ propensity to meddle don’t serve the market, or those who need a home”
At last, a glimmer of sanity. Faced with what is said to be the greatest collapse in the housing market of modern times, the government has decided to do virtually nothing. Excellent. Housing policy brings out the idiot in politicians - and journalists. Ministers should not waste public money to make houses cheaper when prices are already falling. The purpose of government policy should be to achieve some market stability, not to drive prices lower by increasing supply. Yet this government is doing just that, in the same way as it drove up prices during the boom by hyping demand. As for the "bringing forward of old money" for social housing, the term "social" simply means the state giving a tiny group of lucky qualifiers what amounts to a one-off lottery win for life.