refuting BBC on housing

[james armstrong]

Refuting received wisdom 
sent to 'Today' BBC Radio Four , Tuesday 
Augst 30th 2011   The
twenty year old Housing Crisis.

Please excuse me if I  refute the conclusion of Ruth Davidson
of  National Housing Federation on the
cause of the housing crisis- and criticize 
Today.       Her analysis is -

“The
Government failed to understand that the country is in the middle of a housing
crisis”

The
Government did not fail to understand. Worse, the Government deliberately
caused the crisis,.

   1 In 2004 calling into existence the Barker
Review of housing supply  is evidence of
the awareness, in 2004 and earlier, that there was a crisis. (and of subsequent  HMG
complacency & complicity)

The
Report concluded in 2004  that 240,000
new houses a year were needed. In 2002 output was 185,000.  In 2010 it 
was circa 102,000 at a time when demand has increased and increases
further. 

   2  on 27th
 March 2007 the cause of the
crisis was  identified at the  meeting of the Treasury Select
Committee.  Which was  that – It was government policy to use
increased housing prices and  the necessary
increase in mortgages to stimulate the economy, and low output of houses, helped
house- prices , mortgages and high street spending to rise. So effected  government policy.

    3 
The mantra repeated ad nausea by 
Deputy Prime Minister John Prescott etc from 2005 on, of  achieving  the housing target of  “3million by 2020” also  proves awareness of the problem

(this
implied a target output of  250,000 pa.)

    The ex governor of the Bank of England ,
Lord Eddie George giving evidence in 2007 said (see below) Talking of increased
house prices- 

“we knew that we had to stimulate consumer
spending,  to levels that could not
possibly be sustained,,, the problem is a legacy to my successors….. they have
to sort it out.”
For
 a transcript of the  27March 2007 select committee evidence and If your
 listeners want to hear non coporate solutions to the  housing crisis 
please contact me  JA  		 	   		  
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