Really, Sajid Javid has a reputation as a high flying City Banker, lowering himself in service of his country by taking a Government job.
Allegedly, his ego remains that of a City High-Flier.
However, coming out today to say there is housing crisis, young people can’t buy or rent and the Government should do something about it is pretty thin. Rarely these days do the labour opposition make any good points, but to say the Government is complicit in not doing anything serious about housing for 7 years is spot on. Allegedly there were some ideas about planning reform floated last month, but these do not seem to have seen the light of day.
Actually, now is a good time to get building. The higher end property market has gone for a burton, freeing up labour and companies to look again at more mid-range projects where prices are more inelastic (as are the profits though..).
A good old house building boom is long-overdue. Indeed if this comes alongside falling immigration and falling household formation then more is the better – we could see a real improvement in the situation.
Of course a real improvement also means house price falls (or, no nominal increases) for the foreseeable which will be very unpopular with our Banks and Lenders. But suffer they must, jus don’t buy any shares in them.
The real issue though is the Government has not really committed to anything as per usual, so not doubt I will be re-writing this post again every year for the next decade. I somehow doubt prices can go beyond 8x income ration which is where they have reached, but then again I thought that at 6x Income and 7x income!