I'm really struggling to get my head round the plan for the government to start loaning people money for deposits to buy houses.
Isn't part of the reason for our current woes that banks lent money to people who couldn't really afford to pay it back, to buy houses they couldn't really afford to buy, that fuelled further house price inflation, that encouraged more people to borrow even more money they couldn't afford until it all eventually went bang and the government had to use taxpayers money to bail out the banks leaving a massive hole in the public finances that is getting bigger by the day despite all the never ending austerity we’re being subjected to?
So the solution to that, according to the Chancellor, is to cut out the middle man and give taxpayers money direct to people who can’t really afford to buy a house to encourage them to take on a load of additional private debt they may never be able to repay, thus further fuelling house price inflation while potentially restarting the whole vicious debt circle again before we’ve fixed the last one.
It just seems absolutely ludicrous to me.
Wouldn’t it have been simpler and more effective to release the money being used for this wheeze to local councils to build lots of social housing at affordable rents, thus stimulating the construction industry and creating jobs, providing homes for people who need them, preventing encouraging people taking on mortgage debts they can’t repay and avoiding fuelling even more extortionate rises in house prices. Increasing social housing rental stock would also help bring down the ridiculous levels of private rent, making even more homes affordable for even more people, and reducing the need for taxpayers to subsidise private landlords through the payment of housing benefit.
Don't be silly John, how do the ridiculously rich people make even more ridiculous amounts of money out of such an obviously sensible idea to benefit the ridiculously poor of the country..