• Housing Sorted

    In recent years, houses prices have soared especially in London and the south east, partly due to the euro crisis in 2008 when rich Europeans decided to move their money out of the euro and into sterling by buying property here. That surge has now subsided, which means London property prices should stabilise at least or possibly fall. But for those on low incomes the possibility of buying a property has now become a distant dream, and this issue and the general housing shortage in the UK needs to be addressed. Local housing associations (LHAs) cater for local needs and low earners. In order to tackle the problem, NIC would introduce LHA long term low interest bearing bonds. The bonds would be sold on the financial markets and underwritten by government in much the same way as Treasury bonds. The capital raised would be used to build or convert properties, such as unused offices and derelict buildings. The construction costs would be exempt from VAT and to ensure the bonds are successful, any capital gains and interest payments would be tax free. The scheme would include a mixture of low cost rentals, shared ownership schemes and private sales. LHA bonds would reduce the housing shortage and promote employment, but social housing would only be available for UK citizens and those with UK citizenship.