Thursday, 15 May 2008

Big numbers! Big numbers!


The Goblin King pledges to spend "£200m to buy unsold new homes and rent them to social tenants [and] £100m for shared equity schemes to help first-time buyers purchase new-build homes".

£300 million divided by current average house price of £189,000 is, er, 1,587 homes. That's less than one day's turnover, even in today's depressed market.

Oh, and don't forget the gummint's generous contribution of £30 towards your legal costs if you are threatened with repossession.

At least Norman Lamont had the guts to spend £2 billion on trying to prop up sterling on White Wednesday before admitting failure. Throwing away £300 million to try and reflate a £1,500 billion house price bubble* is beyond futility.

* If house prices were still in line with the long-run average, they'd be worth about one-third less. Total value of all housing is approximately £4,000 billion.


Umbongo said...


But what a wonderful way for Labour councils to get their own back on constituents in non-Labour wards. All the council has to do is plonk a carefully selected section of the benefit-claiming classes (preferably "families" with ASBOs and 6 children under 10 fathered by 6 different inadequates) in the streets inhabited by the the tax-paying, mortgage paying, law-abiding non-Labour-voting classes (some of whom are unable to sell their houses at the prices ruling 6 months ago). It's the 21st century equivalent of Herbert Morrison's "building the Tories out of London".

Anonymous said...


We're currently close to a peak in the housing market, and Brown wants to go out and buy houses? Then again, I suppose he sold gold at the bottom, so I shouldn't expect much more from him.