This is familiar territory for older readers. It’s a game of property musical chairs. The rules are something like this. Beg, steal or borrow a deposit to buy your first home and get on the ladder. Borrow the maximum. As higher interest rates start to bite, top up credit lines with credit card and other loans. Then there’s an economic downturn and the weakest go into negative equity and fall off the ladder – the weakest having joined the property ladder last before the market dives.
Meanwhile, George Osborne has not done enough to promote real economic growth. What about up-skilling, investment in technology and focus on exports?
Of course, part of the housing problem in the UK is supply related. Osborne has made life considerably more difficult for buy-to-let landlords, so I’d expect to see more landlords liquidating their housing stock – this will increase supply.
Housing is a major political issue in the UK because young people are increasing deprived of their first home, unless they are privileged and have wealthy parents. If Jeremy Corbyn focuses upon a radical housing policy, perhaps he’ll be the UK’s next prime minister?