We can't solve our negative equity problems by creating a new wave of mortgage slaves
Residential property prices are a more prevalent conversation topic than the Premier League. But between the competing vested interests – homebuyers seeking affordable accommodation; financial institutions and NAMA with property portfolios to off-load seeking maximum returns; existing homeowners in negative equity, hoping house values realign with their loans – where lies the national interest?
Cheaper housing costs are critical to reasonable living standards. Dearer homes mean higher wages – making house prices a vital competitiveness component. In this conflict whose side is the Government on?
For income stability we need ratios of residential values to total household income of no more than a multiple of three or four.