Government hopes rising prices will ensure more house building

Turnbull2000

Seems so...

http://www.guardian.co.uk/politics/2011/oct/01/david-cameron-land-release-growth

Under a "build now, pay later" scheme, developers will be able to begin construction work immediately and only pay for the land when the houses are sold. The aim, Cameron will say, will be not only to stimulate economic activity and boost employment but also to help more young people onto the property ladder by increasing the supply of homes.


Government sources said many Whitehall departments had been reluctant to release land to the market because prices were so low and they believed a better return could be achieved later. But under the new plan they will be compelled to make land available, if and when appropriate building schemes are identified.


The eventual price to be paid for the land would be linked to the sale prices achieved for the houses, meaning taxpayers could benefit in a rising market, Cameron will argue.

Better keep those rates mega low for much, much longer then.

nomoreboomandbust

Turnbull2000 wrote: »

Seems so...

http://www.guardian.co.uk/politics/2011/oct/01/david-cameron-land-release-growth

Better keep those rates mega low for much, much longer then.

Boost employment, don't make me laugh, presumably these will be mostly construction jobs, all very well, but if 90% of the new jobs created go to immigrants what is the point

Jimmy_31

nomoreboomandbust wrote: »

Presumably these will be mostly construction jobs,all very well, but if 90% of the new jobs created go to immigrants what is the !!!!!!! point

Its all well and good providing more construction jobs, its the wages they will be paying that are the problem.

I will be asking to set up my own building scheme for one house:)

If anybody else would like to come in on this scheme then me and my mates would gladly build you a house for under 50k:)

nearlynew

Does this mean you might actually get round to buying now then turnbull?

geneer

Government says what it thinks the voters want to hear.

Just like they did in 2007.

HAMISH_MCTAVISH

Turnbull2000 wrote: »

Government sources said many Whitehall departments had been reluctant to release land to the market because prices were so low and they believed a better return could be achieved later.

The eventual price to be paid for the land would be linked to the sale prices achieved for the houses, meaning taxpayers could benefit in a rising market, Cameron will argue.
.

Heh heh.

Nothing like giving government a cash incentive to see rising house prices.:)

geneer

HAMISH_MCTAVISH wrote: »

Heh heh.

Nothing like giving government a cash incentive to see rising house prices.:)

And funnily enough the article says nothing like this thread title.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Heh heh.

Nothing like giving government a cash incentive to see rising house prices.:)

A cash incentive to boost prices only makes the problem worse.

If you want a larger crash, keep trying to inflate prices further out of reach. The further you pump prices up through fake money, the more money you need next time you try to pump prices up.

The government at the moment are on the house price rises side, no one can argue that. But for every bit of cash they throw at it, they will need more cash next time. And more the next and so on. The more money that will need to go on housing benefits too.

It may well stop prices falling for some time. But it would certainly make prices crash harder when they do, as they have been pumped up even further out of the reach of the nation.

Unfortunately, it will be the people who bought in when prices were being pumped that will ultimately be burnt.