Rising house prices are not good news

Could I point out that house prices, per se, are not actually rising, as you report (4 August)?

What is actually happening is an increased desirability of the site on which the bricks and mortar stand.

We are now perhaps at the first stage of another land value speculation boom and bust cycle, the very thing that was the ultimate cause of the current economic disaster in the first place.

Land speculators and the financial butchers that supported them did the monetary equivalent of selling festering cadavers and putrefying entrails, disguised as fresh meat in a fancy package. The foul effects linger to this day.

If we wish to avoid any further decomposition of the national body, our gutless politicians will have to initiate the collection of land rental values to replace income tax as the basis of public revenue.

RON GREER

Blair Atholl

Perthshire

Far from being a cause for celebration, reports of house prices rising 5.3 per cent on the same period last year should serve as a warning of problems yet to come.

Given the climate of rising unemployment, stagnating wages and a collapse in house building, house price rises are an indication of the severe shortage of homes rather than a sign of economic recovery.

Historically low interest rates and lender forbearance will not last forever.

Add to this the forthcoming public sector job cuts, the UK Government mortgage support schemes facing cuts then the prospect of thousands of families struggling to pay their mortgages, and being tipped over the edge into repossession and homelessness becomes very real.

Politicians need to lead us to the recovery we need rather than the recovery we are getting, which could sow the seeds for a return to a rollercoaster housing market.

A new approach to housing is needed to help sustain economic recovery. An approach that puts long-term affordability for homeowners and tenants first and views housing as being about providing homes where people can thrive, rather than an investment vehicle.

GRAEME BROWN

Shelter Scotland

South Charlotte Street

Edinburgh

I WAS hard pushed to summon any enthusiasm for the headlines extolling the virtues of a resurgence in house prices as the basis of increased confidence in economic recovery.

The facts are that the increase in sales volume comes at the upper end of the market which is not so dependent on bank lending as first-time buyers, who are the real life blood of the market and who once again, are being priced out of the system.

An average house price in Edinburgh of nearly 214,000 does nothing to boost the confidence of first-time buyers, especially young people and those on lower to average incomes who really need a starter home.If we lose our younger people in Scotland because of house price inflation rearing its ugly head again our chances of achieving sustainable economic recovery will be considerably diluted.

We, and our politicians have to get over the notion that houses are primarily investments - they are homes, in which society nurtures itself. Without a supply of decent affordable homes of all tenures, Scotland will fail its people, prejudice long-term social cohesion, and exclude many from the benefits of living in the 21st century. A preoccupation with an inflationary market aimed only at satisfying greed will not achieve what we need in Scotland.

The Scottish Government is currently engaged in a discussion with people on the future of housing policy, and that is to be welcomed.

Society needs to respond vigorously to that, and demand investment in affordable homes now. There will be difficult choices for politicians in the next few months - this is not one of them.

It is critical to Scotland's short and longer term economic and social stability that we enhance the supply of affordable homes to provide the majority of our citizens with the basic need for shelter - to do otherwise would be negligent in the extreme.

Such investment would create and protect many jobs as well, thereby ensuring that such public investment that is available is better spent on the creation of real assets and employment, as opposed to short term unemployment benefit payments.

BRIAN GEGAN

Cairn Housing Association

York Place Edinburgh