Eric Pickles: Delivering new homes for hard-working people – Press releases – GOV.UK

English: Eric Pickles, British politician and ...

English: Eric Pickles, British politician and Chairman of the Conservative Party, at the Health Hotel “Health Zone” at the Manchester Central Conference Centre during the Conservative Party Conference 2009. (Photo credit: Wikipedia)

Government spending

Government spending (Photo credit: 401(K) 2013)

This upbeat press release from Eric Pickles, the UK Local Government Minister, is a MUST READ article in my view. Check it out!

via Eric Pickles: Delivering new homes for hard-working people – Press releases – GOV.UK.

Whilst the UK Government fiscal policy is very slow to help investment and jobs, the Government guarantee scheme for housing loans is a risky policy in the eyes of many economists (See this week’s Economist). Many argue that it’s, in effect, a UK sub-prime crisis waiting to happen.

With the Labour Party is disarray, the Coalition of the Conservative and Liberal Parties are playing a risky game to kick-start to UK economy and create a feel good factor ahead of the election. In reality, the Government is stimulating a property bubble which seems to contradict the central message of austerity.

Any thoughts?

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5 responses

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  5. This all sounds wonderful until you look at the scale of the problem.

    Under John Prescott’s “Predict and Provide ” figures in Tony Blair’s regime, the housing shortage was 4.4 million houses.

    Then to relieve a shortage of construction workers and NHS dentists, the Poles were encouraged to come following their EC succession. We were told that 13,000 would come by the then Home Secretary,but 1 million came. Half returned to Poland but were replaced by other Eastern Europeans.

    The housing shortage became 5.4 million.

    We have 4.5 million illegal immigrants. This is based on the number of notes and coins in circulation, the number of unregistered children attending school for the first time with parents of undocumented status and whose first language is not English and by the amount of food sold in supermarkets which exceeds what the indigenous population can eat.

    The shortage then became 9.9 million houses.

    Legal immigration and illegal immigration using fake ID and purchased NI numbers pushes the present figure to 11 million houses.

    Even at Eric Pickles’s most optimistic estimates, (say 160,000 houses a year), it is going to take 68.75 years to clear the backlog if we use conventional construction methods.

    The Coalition have 1 year and 9 months in office before they go to the country in the 2015 General Election, so the shortage is, on present performance, going to last forever.

    Because the banks are not lending very much even this current activity is having to be stoked up with Government money and that will be stopped just ahead of the election once a “feelgood factor” has been temporarily created.

    Potentially this is economically dangerous because Government money needs to be going towards creating export led growth and stimulating employment growth in high tech sectors where the new jobs will come from.

    The process of pump priming the housing market cannot continue anyway because of a new shortage of construction workers caused by layoffs in the last recession (many now work as taxi drivers) and the fact that young people are for the most part not interested in becoming construction workers or skilled tradesmen in the way they once were.

    The solution to the housing crisis is to first stabilize the population at its present level, reduce the number of local authorities, police forces and fire commands to 15 each for the whole country, outsource everything else, reduce civil servant numbers to 15,000 and then to use systems building of Hof Hauses and Ikea houses each of which can be built on assembly lines, shipped to the UK and erected by crane using factory fitted components dropped onto a concrete base.

    ICF systems building techniques can be used to build safely on flood plains with little insurance risk.
    Since the banks are not lending,even with these reduced building costs the money would have to be raised, so one would have to encourage new lenders to come in and compete with our High Street Clearers and issue Housing infrastructure bonds with an attractive coupon to bring in Sovereign wealth from overseas.

    Anything short of that, or large scale hostel building, will be insufficient, which means a UK housing shortage growing into the future for as far as the eye can see.

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