Originally posted by DodgyAgent
Young first-time buyers can not afford houses, not because house prices are too high, or because they don't have enough money, but because there are not enough houses. Someone has to be at the bottom of the pile and not get a house. No monetary or taxation adjustment will fix this.
The worst of all things that might be done about this is to have a Key Worker house purchase scheme:
1. it lifts some on to the housing ladder simply by booting others off.
2. worse, it creates a sort of job apartheid by lifting the government's workers on while booting off those outside the patronage circle.
3. by effectively removing some houses from the market, it raises the price for others
4. it locks government workers with these houses into the patronage system.
5. it lets government, as employer, off the hook for simply not paying enough and taking the consequences.
In other words, it is an exercise in economics without price.
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