Do we really need more houses built in Windsor or is it simply all about the balance sheet? Here’s my take on the whole property thing…
In the good old days of the 80’s when you could get a 2 up 2 down for less than £100k and you had a family income of say £30k then happy days, as a 20 something couple with half decent jobs, you could get on the housing ladder and every king could have his castle.
Around the Millennium properties increased in value so significantly that it had a major impact on the world of finance. No longer was this about working people feeling proud to own their own homes but more about individuals investing in their pension portfolio.
When those house price figures started really impacting the economic forecasts, at a time when traditional UK industry was being crushed by EU regulations & agreements, the game changed again…
Moving towards 2020, the housing stock has been bought by or given to housing associations to manage into which the major institutions invest. On the basis of their portfolio of hundreds, if not thousands, of houses they can borrow from the banks to buy more houses, which are, in theory, going to increase faster than money invested elsewhere in the markets. Happy days… stocks go up for now… but is it real?
So I ask again, do we really need more housing in the Royal Borough of Windsor & Maidenhead or is this simply a matter of those cute with finances looking to make a fast book on a balance sheet?
Is this why the conservative dominated council voted on the RBWM Budget for 2019-20 that agrees we can be £85,100,000 “overdrawn” by the end of the year?
Could those who understand this process clearer than me please explain it to me and others in a way we can understand your logic… being overdrawn is good… why?