The housing market is an interesting one, and one which is ailing. For decades now governments have tried to correct this dilemma, and they have failed. The majority of the previous Labour government’s focus was spent on “Education, Education, Education” the words of Tony Blair, whilst the market suffered from regulation, regulation and further regulation. Whilst Conservative governments and the Coalition have had key focuses elsewhere, and generally continued the status quo. However, irrefutable evidence lies to suggest that Labour’s high taxation and high regulation policy is the far worst of these approaches in the fact that of the past seven Prime Ministers the three with the highest change in Real House Prices per year, be it positive or negative, were all Labour PM’s, Blair even managed to double it alone and add roughly £103,000 onto the market.
Regarding regulation, one interesting species to note is the Great Crested Newt, this is considered by the IUCN Red List as being “Listed as of Least Concern in view of its wide distribution, tolerance of a degree of habitat modification, presumed large population, and because it is unlikely to be declining fast enough to qualify for listing in a more threatened category.” Yet has been protected by the EU due to its status on mainland Europe, and as the UK normally do, we followed suit with legislation to protect a species which now vastly damages building projects across the UK and is as common as rain in the north.
Great Crested Newt
Brexit gives us a chance to correct the errors of judgement we have made in the past and truly change our regulations from being for the sake of regulations, into legislation which can begin to make a difference, not limited to only cases of environmental legislation by checking the species which we protect are those which need so the most.
Now is the time to embrace solutions to this ever-growing housing crisis, yet how do we do this? Not by just correcting the mistakes of the past such as that of regulations, but by setting out the plans for the future, we are already falling behind on this. Article 50 has been triggered and the clock is ticking, it is time to start with some somewhat radical thought till we approach a reasonable solution for our post EU future. We are already seeing plans emerging from the economically radical left and whilst fire may not fight fire it may be nigh on time to start seeing some plans from the relatively radical right. I would not claim to be a member of this group, yet we can pick and choose policies, and I believe it’s time to open up some discussion from this sector of society.
So now, what policies could we possibly debate from this group, policies which are radical yet reasonable and fair, policies that may lead to jobs, to growth and to a better future for many. One seems to meet all standards, the potential abolition of all taxation regarding the purchasing or sale of land for development of new properties, and the eventual first time sale of the property, this may help to drive down the incredible cost of land that is currently estimated at roughly 70% of the cost of development. This may also have an impact upon current house prices, but this will likely be negligible due to the marginal impact of new homes upon the whole market, whilst businesses would be eager to take advantage of such a profitable market and so flock to create a housing boom for the UK at not just a significant rate, but also at an affordable price for the so called ‘Generation Rent’.
We’ve had the big boom of the financial sector and of industry, it’s time to embrace some economic liberalism and cause the housing boom, and end this crisis whilst providing for valued, high paid jobs.