I have to smile when baby boomers are held out as to have never had it so good and much better placed than the following . generations When in reality much of the supposed wealth is usually attribute to their one major asset their house, with many being asset rich and cash poor.
The reason why their supposed wealth (house value) has grown is because of pent up demand caused by massive migration and increase in UK population within a short period of time and the complete lack of house building, both controlled by the government or their agencies eg planning control. Basic economics of supply and demand on prices, levers that are controlled by respective governments.
The massive increase in house prices is having a dramatic impact on the mortgage costs and the family finances for the following generations reducing their cash resources and savings. Increased house prices raises rents and requires even greater subsidy in housing allowances etc., which all has to be funded by raised taxes, a vicious circle creating funding issues across the board.
Its amazing with a smaller population and a bankrupt economy following WW2 what the UK achieved eg
''The UK government proposed to address the need for an anticipated 200,000 shortfall in post-war housing stock by building 500,000 prefabricated houses, with a planned life of up to 10 years, within five years of the end of the Second World War. Over 1.2 million new homes were built between 1946 and 1951, with four out of the five houses being council houses built by the local councils to be rented by families. 156,623 prefabricated houses, known as prefabs, were built in some areas as a quick solution to the housing shortage. Housebuilding in England and Wales fell from an average of 1.9% growth per year between 1856 and 1939 to 1.2% between 1947 and 2019.
So in my very simple mind I hope the government builds a million new houses a year, thereby reduces the pent up demand and therefore the resultant house prices fall thereby reducing the perceived wealth of the baby boomers and reduce the cost of house ownership/renting for the younger generation, allowing them to have more cash at their disposal.
A very simple levelling up exercise and creates jobs for electricians, builders, plumbers etc.
A simple solution all within the control of the relevant government. But it wouldn't suit them as tax receipts would fall from the baby boomers and subsequent generations as the value of inheritances would fall and the resultant tax raised.
Last edited by JohnHarris; 10/10/24 12:14 PM.
