The Telegraph, May 22, Roger Bootle
There are few areas of policy more important for the welfare of British people than housing. Yet recent Government pronouncements have suggested that this will continue to be an area of chronic policy failure.
Ministers either fail to understand the basic economics of this market or they are cynically engaging in the grubby business of gaining a few extra votes – even if the policies they adopt run counter to the public interest.
Last week Michael Gove suggested that the Government would help potential first-time buyers shut out of the housing market. This sounds good and if you happen to fall into this group then such an approach would benefit you.
But what about everyone else? Unless this policy results in more houses being built – and there is no suggestion that it would – then benefits for this group of people would result in losses for others.
When will governments learn that boosting the demand for housing and/or the ability of particular groups to buy property does nothing for people overall? It merely serves to drive up property prices.
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