“We have an economy that relies on house prices getting higher and higher whilst wages have been stagnating and savings depleted. One of the reasons for this is monetary policy that results in maintaining asset price bubbles including housing.”
Fran Boait, Executive Director for Positive Money spoke on the RT report that 1/3rd of working families are a month’s paycheck away from losing homes
Currently, 66% of first-time buyers require financial support from a parent in order to get a mortgage, compared to 33% of first-time buyers in 2009.
The money created through private bank lending has helped house prices soar. For example in the lead-up to the financial crisis, the money created by private banks for purchasing a house quadrupled in the UK, whilst house prices for the same period tripled. For the same period, the housing stock increased faster than population growth.
We are calling on the Chancellor to change the direction of newly created money from Quantitative Easing which just floods financial markets, to fund things such as house building programmes.