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Archive of previous articles and news

Rising Prices.
Property prices have been driven by increasing demand, a rising population who all need housing, the perception of housing as a good investment, the fear of being left behind, low interest rates, high levels of employment. In addition, Bournemouth enjoys an attractive position on the south coast where people want to live.

Housing is Affordable.
The market will decide if house prices are affordable or not. If property is offered for sale or rent at a price that no-one is prepared to pay then there has to be an adjustment in prices. At current property prices in Bournemouth there is demand, and there are takers.

Housing is Unaffordable.
There is now a large section of people who are not already on the housing ladder, and whose level of earnings mean that property prices put housing beyond their means. For many, home ownership has now become a dream.

Falling Prices.
The only hope for many is a slowdown in the economy and a house price crash. Will the economy go into recession? Would that mean that jobs are lost? The biggest influencer on prices falling this year may well be the credit crunch and the shortage of funds lenders have for mortgages.

Who are you calling a key worker?
Help may be available from the Government for certain key workers such as nurses and teachers. But how do you decide which workers are key? Supermarket workers, bus drivers and sewage operatives don't have glamorous or high profile positions, but all play a part and are all key workers. Shop workers and call centre staff might also look enviously at the starting salary of a teacher at around £21,000 rising to around £35,000 and think why do they need additional help? All workers would like to be homeowners, not just certain key workers.

An impossible situation.
So what will the Government do to help a generation of people priced out of home ownership? Bournemouth Council planning require an element of affordable housing on developments of 14 or more properties, and is reportedly about to dramatically increase the affordable housing it requires from developers possibly to 40% of all new residential sites. But if you can build a house and sell it for £300,000 why would you sell it for £150,000? Some local planning agents fear this will stifle development, which is the exact opposite of what is intended.

The Government doesn't seem to have a plan or a big idea at the moment. But if they fail to force house builders to build property below market value, what is the alternative? The State as a builder and landlord of affordable social housing ... large scale Council Housing?

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