“Property values in desirable areas could go down in a radical bid to spark new building”

Oh dear! In East Devon we are getting LOTS and LOTS of houses being built but prices are still going UP and UP – not DOWN as Javid tries to suggest should happen! How will Javid deal with THAT? Or is it exactly what he wants, and the suggestion that prices should fall is just a smokescreen for even more rampant development in high-cost areas?

“Communities Secretary Sajid Javid is preparing to unveil a striking new rule that will make NIMBY councils take local affordability into account.

Under it, every authority will have to calculate how easy it is for young workers to get on the housing ladder by working out their local salary-to-house price ratio.

The average house in Britian now costs 7.8 times the average salary – an all-time record.

And in some areas of the south east, the figure rockets to above 12 times people’s wages.

Mr Javid wants to slap a new automatic legal requirement on councils with ratios that are too high to make them green light thousands more homes, so that a significant increase in housing supply reduces prices over time.

Mr Javid’s test has been debated intensely in No10 for six months over fears it will spark a rebellion from some Tory MPs, The Sun can also reveal.

It could also ignite a dangerous backlash in solid Tory areas as home owners panic about their own houses losing value.

But a senior government source said last night: “Sajid has come up with what he insists is an objective and transparent test to increase supply.

“For once, councils won’t be able to fudge it, and that is key.

“There was nervousness in Downing Street before the election about upsetting the horses, but he has persuaded a lot of us round.”

Mr Javid’s plan could be unveiled as early as tomorrow.

In a preview of his plan, Mr Javid mounted a withering attack on councils three weeks ago for failing to build enough.

The Cabinet minister branded them refusal “not good enough” and declared that “the era of tolerating such poor, patchy performance is over”.

https://www.thesun.co.uk/news/4047763/property-value-in-desirable-areas-could-be-forced-down-under-a-radical-new-test-to-spark-more-building/

One thought on ““Property values in desirable areas could go down in a radical bid to spark new building”

  1. Of course none of these increasingly desperate sticking plasters would be needed if the Tories had not meddled with an affordable housing system that was working well.

    But their dogma (that everyone should have to have a mortgage to make them worried about losing their jobs – oh, no, sorry – that tenants should be able to buy their council house) which fueled house price inflation and resulted in a shortage of affordable / social housing. Everything they have done since to try to encourage developers and councils to build more affordable housing has been to try to reverse the consequences of this dogma.

    Like

Comments are closed.