HOME IS WHERE THE CASH IS

Yesterday I was in Warrington and while sheltering from the interminable rain I found myself inside an estate agent's shop window. If you live in that part of the north-west, the Government's quick-fix suspension of stamp duty is good news. There was very little for sale over £150,000 - I even saw a house for £75,000 but unfortunately I have not the slightest inclination to up sticks fior an even grimmer part of the north. And therein lies the rub as far as Gordon's latest populist ploy goes. 1. It's only for a year and 2. It only affects a tiny proportion of the housing market.
Last week I happened to be staying in Chiswick - it was a sunny day and i was idly glancing in the estate agent's window. Basically, my ( considerable) capital from selling this house would not buy me a garden shed in any desirable part of London. Which is why the hard-pressed British public is likely to be underwhelmed . If you live in the south-east, it's meaningless.
Also, the basic problem we have is nowehere near enough social housing for RENT.
OK, Communities secretary, Hazel Blears, yesterday unveiled a £200m "rescue" package, aimed at helping 6,000 people with mortgage repayment problems enter shared ownership schemes. Plus, 10,000 first-time buyers earning less than £60,000 will benefit from loans of up to 30% of the price of a new home, while £400m already committed for new council homes is to be released early. Fair enough. But frankly it's just not enough - we need a wholesale commitment to building thousands of new council homes, we need local authorities to have the power back to do so. We also need brave steps like local authorities being able to buy back reposssessed homes and take them back for good into the public sector.

LET'S TAKE THESE HOMES BACK INTO PUBLIC OWNERSHIP

News today that repossession orders are up by a quarter across the UK. No surprise, really. As the credit crunch bites and food and utilities bills go through the roof then more and more people are going to be in difficulties. I was eminently lucky to buy a house at a time when houses round here really were affordable .I have five years to go on my mortgage but managed in the good years to pay a substantial part off the original £47,000 cost of my house. Most people now are not so fortunate - indeed the very notion of any house for £47,000 is pretty unthinkable.
As this crisis gets worse, more and more people will face the indignity of repossession and possible homelessness. Why should they? Tony Benn came up with an eminently sensible proposition a couple of months back at the Left Economic Advisory Panwl conference - which was for local authorities to buy repossessed homes, take them back into the public sector and allow families to stay there on a renting basis. Indeed, so sensible is this plan that apparently that rabid left-winger Hilary Benn is supportive of the LEAP proposal espoused by his dad. If this became policy, it would be a popular move which might win the Government back some credibility and support.

LET'S BUILD MORE SOCIAL HOUSING - NOT LAY PEOPLE OFF

Fears of recession deepen as the housing industry faces a serious slump - and serious implications for jobs.
Today, major players Bovis and Redrow have revealed they are in the process of shedding about 40 per cent of their workforce - 400 jobs at Bovis, and around 550 at Redrow.
The news comes a day after another housebuilder, Persimmon, announced that 1,100 full-time staff had been cut since January.
Last week, other developers including Taylor Wimpey and Barratt Developments together revealed around 3,200 job losses. Why? Because the demand for homes to buy has been drastically hit by rising prices, falling wages, and general fear of economic downturn. Yet affordable homes are needed now more than ever.
The slump in the homeowner market could be used as an opportunity for now redundant development sites to be transformed into places where social housing could be built. Thousands live in sub-standard rented accommodation. The Government should step in and facilitate the building by local authorities or housing associations of much-needed homes for rent. And save the jobs of thousands of building workers in the process

DEFEND COUNCIL HOUSING - AGAIN !

Back in the "halcyon days" of Gordon Brown's honeymoon as Leader, much was made of his renewed commitment to council housing. Now it appears that our hopes were a) a little premature and b) will be dashed unless serious pressure is put on the Govt and MPs to amend the Housing Bill which was discussed this week. See John McDonnell's blog for more details and links .