Friday, 26 October 2012

New Council Pension Houses

We used to have Council houses MILIONS of them I worked on lots of them over the years doing repairs to roofs, replacing windows or clearing drains. The councils I worked for contracted the repairs and refurbishments out to builders who in turn employed people like me and 100''s like me and we all earned a living. I used to drive from Thanet to Tonbridge or Maidstone Faversham and even Canterbury. I paid my own petrol to get to and fro work and when I got my wage packet I gave money to my wife who in turn gave some to the butcher the baker etc etc. I must say I worked all over the south east of England and I have worked with 100's and 100's of guys just like me who spent what they were paid with local stores and shops. This system worked and no one got rich but we paid the bills and no one went hungry in its own way it is a macro economy but became a micro economy when the councils started cutting rates on the jobs and earnings dropped.
The reason I have given the history lesson of my employment is I have worked on local authority properties since the 1970's.  Council houses as they are known were built to a standard and were the mainstay of many households after the war until Mrs Thatcher saw a way of selling them off. Now this Government wants more homes built but because the banks wont lend our kids the funds to buy their first home some bright spark has come up with the ideaof using the public sector's pension pot to kick start the housing sector. I on one hand don’t care who funds it but on the other hand am furious it is taking so long to get the houses we so badly need built.  The scheme introduced to get people into homes and enable first time buyers get moved in with a five per cent deposit. Well that scheme is not working with just 250 homes purchased using the scheme despite that nice Mr. Cameron hailed it as ‘a vital boost to the housing market, giving people good affordable new homes and backingthousands of jobs in construction’.

If it is such a vital boost why has it not worked? Now this week’s great idea is build houses by using pension funds. Great, as I said I don’t care where the money comes from we need the houses the builders need the work the plumbers need the plumbing the electricians need the wiring the roof tillers need the work. The builders merchants need the work the brick firms need to make bricks the plasterer need you get the idea. Building houses creates jobs and we need jobs this latest idea is the last in a long line of failed attempts to get Britain building.. The powers to be have no idea of how many jobs can be created they are drawing great pensions and a salary the rest of us can only dream about. The banks created this problem and were glad enough to lend us 110%  mortgages but now they want virtually that amount as a deposit. Interest rates have never been lower but the banks wont risk earning a profit, I would love to see this scheme work but anything the government does at the moment seems to little to late. Maybe the Council pension houses will be the answer but I doubt  it . 

1 comment:

  1. Using a personal pension fund to allow your child or some other close relative to buy a house was a Nick Clegg idea floated about a month ago when the party conference season was in place. Most pension industry fund experts said at the time it was a daft idea. For the very rich with large pension pots it could be viable as they will not miss the odd £50,000 being taken out of their large pension savings. But with the lesser well off could have the majority of their pensions savings still tied up when they need to retire.

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