Government will spur UK house building - comment by Dr Gheorghe Multescu
25 November 2015
Dr Gheorghe Multescu, Director of London Institute for Real Estate in London South Bank University (LSBU)'s School of The Built Environment and Architecture, has responded to the Government's Spending Review and its announcement that it will double the UK's housing budget to £2bn a year, delivering 400,000 new affordable homes.
Dr Multescu comments: "The
government’s approach is based on the principle that encouraging homeownership
through government subsidies and shared ownership schemes is the answer to the
current housing crisis.
subsidies are designed to prop up the market so that it maintains a high volume
of transactions and mortgage lending as a trigger for the private house
builders to deliver the 400,000 new affordable homes.
injecting tax payers’ money into the pockets of private house builders and
private owners of starter homes, without a clear mechanism of recovering such
funds, should be strongly questioned by the public. A minority of new buyers
are actually provided with a cash gift, to the detriment of other tax payers.
Equally, private builders are rewarded with subsidies in order to round up
their already nice profits.
scheme does not seem to consider local authorities to be a worthy partner in
joint housing schemes and ignores the fact that the current housing
affordability crisis draws its origins from an imbalanced market-driven housing