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Lack of Social Housing Will Force House Prices and Rents up by Lawrenson of LettingFocus

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I See Few New Houses
Imagine you are Gordon Brown. You have survived the election and its tough times. Or, if you prefer, imagine you are David Cameron, the perennially smoothly shaven new PM.
You know the dire state of public finances and you know that some government spending has simply got to be cut – but where do you cut?
Public sector pensions will be a candidate, sure, but that will take years to bear fruit in terms of lowering the burden on taxpayers.
I would guess that while all areas could come under the knife the two areas that are least likely to be cut will be health and then education.
Why? Well, health is an area where the government can arguably claim to have made some progress since 1997. Education is a big priority area too.
In both health and education I would guess that anything near the front line services will be spared anything much in the way of cuts.
So once all the many Questionable Quangos with their well paid Execs have been cut down a bit where else do the big cuts come?

Social Housing
I would guess social housing would be one area that’s very likely to see cuts because the savings could be quite big here and the government can always do what they have been doing for years – which is look to private landlords to take on the role of “Provider of Housing of Last Resort” through the Housing Benefit/ LHA system (at least until the public finances are back in shape.)
With not much new housing stock being added – whether private sector or public sector - this will only put further pressure on house prices and rents to continue their inexorable rise, at least in those parts of the country where the economy is still reasonably strong.

ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property experts and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property book for the last 3 years.
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I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make money.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer most questions on letting property because I have been a landlord and property investor myself for over 25 years.

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