In his speech yesterday, housing minister Grant Shapps touted a pledge to get all Brits on the housing ladder. NLA spokesman Vincent Rampulla said the facts suggest this may not be a sensible goal.
“Of course, people want to believe it. Property owning has always been viewed as a ‘safe bet’ to realising financial security. It is not surprising that the aspirant working class rushed to buy their council houses when Margaret Thatcher instituted right-to-buy in the 80s,” said Rampulla.
He added that the new housing minister’s speech was just another “ritual offering at the altar of home ownership.”
When 75 % of people can’t afford a mortgage at less than an 80% Loan-to-Value, prices are beyond the reach of most people, he said. Lack of building has led to housing shortages and back in 2004, the Government was told by economist Kate Barker this would produce a shortfall of 150,000 homes.
“Perhaps it’s time that we faced facts and realised that people paying inflated house prices entirely with loans was never the greatest idea,” said Rampulla.
