Origins of the property boom

Alan Carcas (Guardian Letterbox July 20) needs to cast his mind back to the early 2000s where our manufacturing industry had been devastated by Thatcherism and the financial services market was hailed as the saviour of the British economy.

The Blair government had deregulated the banking sector and was being castigated by the Tory opposition for not deregulating it completely!

The Casino bankers as labelled by Vince Cable were lending people vast amounts of money to buy houses they could not afford with 125 per cent mortgages.

The people who bought property at this time were fooled into thinking that house prices would continue to rise and their debt eradicated by price inflation. The developers could not wait to get on the gravy train so they built more and more houses at inflated prices for people with unaffordable mortgages. The speculators sought an income for life by buying property to rent to people who could or would not seek a mortgage.

These circumstances created a change in home ownership from it being family orientated into a single-occupancy situation and the vicious circle of the property boom was established. It was against this background that the LDF proposals were formulated by central government to plan for the future.

The LDF consultation process started within KMC during 2003/4. Alan Carcas, like most of the people who are objecting about the process now, chose to ignore it. We are now nearly 10 years into the 15 year plan supposed to end in 2018 and still without one in KMC! If ever we do get a plan it will no doubt be applicable long after 2018 when most likely Alan Carcas and myself will no longer be about.

In order to end on a political note like Alan I should add that not many of the bankers, builders and speculators which created the current crisis are likely to be members of the Labour party!


Oxford Road