New houses never lower prices within their local ‘market’ and the Persimmon CEO’s £110 Million Bonus gives our ‘housing crisis’ the lie

Housing has become one of the hot political issues of our time. To read and hear about it in the media, it has become easy to conclude that the Government, our Councils, Housing Associations and Builders alike all share the view that we are in a housing crisis.

The picture they paint suggests that they are all doing everything that they possibly can. But who should we all really believe?

Laid bare, the lack of housing stock really does look nothing like the story we are being presented by the media.

Immigration inflating real need exponentially has become as much an unspoken truth across the whole country, as it has that 2^nd homeowners are leaving seaside and rural property empty for much of the year, whilst adding nothing financially or otherwise to the communities in which they don’t have time to live, full-time.

“We need to build more homes” has become the mantra of the many. Yet the real beneficiaries of this process will not be the people who will end up living in many of them. Nor will it be the Government which is operating on the premise that money is the only way to solve any problem, no matter what it might be.

The real beneficiaries of the push to create housing will be the builders and the bankers who finance them, whose real take from all the public money which is being fire-hosed at them is only too well illustrated by the bonus payment being made to the CEO of Persimmon Homes.

Under the auspices of self-serving government and the ineptitude of policy making and long term strategy which has been rolled out in real time within current planning policy, Builders and Developers have found themselves within what can only be described as a smorgasbord of discounts and profits. It is nothing less than the epitome of the one-sided win-win.

Deals are and have been done, not on the basis of what is best for us all. For if that were the true intention, there would be little need for deals of this kind.

Deals are being done, because the focus of this housing crisis is about little more than money and profit itself.

People young and old are being out priced in all parts of the housing market, not because property prices reflect the true value of the market. But because the system and government policy is facilitating house builders, mortgage lenders and private landlords to take us all on one massive, great big bubble-building ride.

The evidence is not difficult to find. Wherever we may live, new housing developments are never far away. Yet when homes are released, we never experience prices being lowered nearby.

Lower house prices within the communities in which these additional homes are built would be the logical outcome within any localised market, left to itself to determine and decide its level naturally.

Instead this so-called ‘crisis’ continually goes on unsolved, whilst we are being sleepwalked into a national travesty in the shape of an unsustainable housing price bubble which is guaranteed to explode.

When it does, those profiteering and responsible now will be the first to run and hide.