So house prices are going down, hundreds of thousands sit around unsold.
Moreover, with housing supply a continuing issue, we can scarcely afford to let the house building industry, already severely in debt and landed with thousands of unsold houses for which there are no sign of buyers, sink into bankruptcy. Without a functioning building industry, there is little chance of the three million new homes we so desperately need being delivered. Getting first-time buyers back into the market and making use of the glut of unsold stock are sensible aims.
OK, and the solution is?
But these measures, welcome as they are, will not be enough alone to revive the battered housing market, let alone the faltering UK economy. Brown must also act where he has the most leverage, namely the delivery of new affordable housing. Ministers have already set aside £8bn to be spent over the next three years on building more than 100,000 social homes. This funding must be frontloaded and used in a way that gets the market moving: start building the social homes, and plenty of them, now.
The answer to a glut of supply is to increase supply?