Friday, 21 November 2008

Unlocking the housing market log jam

As it becomes increasingly apparent that the changes announced earlier this year are having no impact what so ever on the housing market is it now time to consider more radical measures?

Given the increasing number of repossessions announced today and assuming the trend continues are we confident there will be enough capacity in the local authority sector to rehouse these individuals?

If you have answered yes then no to these questions perhaps there is some merit in developing these ideas?

Given that premise how about this for starters

Many house sales will no doubt be trapped in chains at the moment. Could the government therefore consider purchasing the highest property in the chain allowing every transaction under it to be completed?

Costs: unknown but if you start at the longest chains and work down.

Benefits :
Increase in stamp duty revenue from house sales lower down the chain
Increase in workloads in house move related industries, (estate agents, removals, land registry)
Increase in tax and reduction in redundancies in the sector
Availability of new social housing stock within the community as opposed to "social housing estates"
increase in mobility for people moving with the labour market

Obviously this is uncosted and unproven but unusual times such as these call for innovative and different solutions