UK housing

On Tuesday morning George Osborne was asked by the BBC’s Evan Davis whether he’d rather fund Crossrail 2 or trans-Pennine rail, assuming that both projects had a positive benefit to cost ratio. Politicians tend to shun hypothetical questions but the Chancellor of the Exchequer used this one to make the following argument:

‘I hope we don’t have to make a choice between the two. I think the real choice in our country is actually spending money on this big economic infrastructure, transpennine rail links, Crossrail 2 in London and the like, and spending money on, for example, welfare payments which are not generating either a real economic return and at the same time, are trapping people in poverty.’

Whenever someone mentions what the “real” this or that is, be careful. There are many choices involved in how the British state should spends its tax revenues and indeed what size the state should be in the first place. To reduce them to one “real” choice representing a fraction of overall spend is like saying that the real choice I face is between a Heart of Midlothian season ticket and feeding myself. (Essentials, both.)  Read more

The chart below marks a moment in the history of English housing:

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David Cameron announced the figures in the Sun, which shows a picture of him next to a snap of Margaret Thatcher promoting her Right to Buy scheme. It should not take too long to figure out the prime minister’s preferred interpretation of the first figures relating to the mortgage guarantee scheme: the only bubble Help to Buy is inflating is one of happiness in the hearts of ordinary people. Read more

It says here that London prices are rising 10 times as fast as those in the rest of the country. It doesn’t sound like there is a great need for Help to Buy where you are.

Is that in the FT? I only read its House and Home section. Read more