It might be a bit early but I’d like to start a debate on how to prevent the construction mistakes of the past happening again – and by that I mean the hyper house price inflation we witnessed.
I believe that all involved before will regress to their old ways once the current correction bottoms out.
1. Where possible I’d like to see planning laws that preferred promoting business intentions rather than residential as I believe the availability of cheap premises will promote local business and create jobs that aren’t tied to construction. These were suffocated during the housing boom as people took the fast buck by selling to builders that converted premises to apartments.
2. I’d also like to see government legalisation to force the banks to keep a 90% (or perhaps even 80%) cap on LTV on residential property. Can that be done?. If not then perhaps the Government could tax any borrowing over 90% so much so that no one would contemplate it. They could do that as the mortgage amount borrowed already attracts stamp duty.
Any body else with ideas?
I believe that all involved before will regress to their old ways once the current correction bottoms out.
1. Where possible I’d like to see planning laws that preferred promoting business intentions rather than residential as I believe the availability of cheap premises will promote local business and create jobs that aren’t tied to construction. These were suffocated during the housing boom as people took the fast buck by selling to builders that converted premises to apartments.
2. I’d also like to see government legalisation to force the banks to keep a 90% (or perhaps even 80%) cap on LTV on residential property. Can that be done?. If not then perhaps the Government could tax any borrowing over 90% so much so that no one would contemplate it. They could do that as the mortgage amount borrowed already attracts stamp duty.
Any body else with ideas?