Shared ownership not a magic bullet
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David Levenson’s letter (Inside Housing, 5 December 2008) dances elegantly around the issue of shared ownership without alighting on the central problem - we are in a slump rivalling that of 1929, which may not be solvable.
Recent reports that John Varley, chief executive of Barclays, thinks housing prices may fall by 30 per cent in total, is consistent with the opinion that the entire house price structure may be in for a phase transition. In other words, negative equity is a racing certainty.
The solution is not Mr Levenson’s ‘flexible’ friend, drawing new and probably naïve buyers into the shared ownership market.
It is to admit the blindingly obvious: these properties will not be sold in the short term and should be rented in the social sector without delay, in order to get some sort of return for tenants who are providing the interest payments - before the homes are squatted in or vandalised.
Peter Rutherford, Independent Federation of Genesis Residents
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Readers' comments (1)
Sasha Watson | 27/01/2009 8:49 pm
It does seem alarmingly and glaringly obvious that since these properties are currently being marketed at figures of over £300,000 who really has the money and why are the long suffering PCHA tenants not being offered discounts of up to 60% to have a chance at buying these probably poorly built properties. Given the level of disrepair in a new build I have had to put up with over the years one can only warn potential buyers of that old phrase "buyer beware". They could also be rented our for those who are long suffering with being overcrowded or such disrepair that a new start would be welcomed by many families.
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