PARASITE SECTOR UNHAPPY!

Did you read that those who work for the State in the public sector such as teachers, nurses, police and firefighters cannot afford to buy homes in seven out of 10 UK towns, allegedly? Poor dears. Mmm...now here's the thing. The AVERAGE Public Sector worker earns more than the AVERAGE Private sector worker thanks to redistribution-loving socialist Gordon Brown. So why is it, given that the State sector workers already earn £250/month more than those in the private sector, we only ever hear how hard done by the State workers are? These are the people who take the most sick leave, who enjoy the most generous holiday provision, who are guaranteed indulgent pension provision, but yet they need more. If they can't afford to buy houses in 7/10 UK towns, then I'm surprised any houses at all are sold to their less well off private sector counterparts. This is pure spin, more moaning from the State workers --- give us MORE! 

Comments

[Peter T]

David,

I agree completely that it is not just Public Sector Workers who cannot afford to buy houses in London, Leeds, Manchester etc. However, teachers, polie officers, health workers (excluding the medical fraternity), firemen (sorry - firepersons) etc. are not overpaid so please stop trying to insert a wedge between them and the Private Sector

The real problem is in the housing market. As far as I am aware, the Law of Supply and Demand is still operative so who or what is buggering up the housing market?

[NRG]

Peter, Some of it is single home occupancy and migration but I think mainly the problem lies with banks offering 110% of house value, 40 year mortages based on up to six times gross salary. Combined with British desire to own property it leads to the enivitable monetarist result.

Supply and demand seem to be moving, more or less togeter, but the money supply that is discrete to the housing market, is growing massively.

Incidently, public sector workers, with a level of security of employment not enjoyed by the rest of us, is more able to extend themselves further and are thus in a better positon to buy than most.

The only outcome can be inflation. And a nasty crash some day.

[The Cynical Libertarian]

The housing market is one of the least free markets there is. Planning restrictions and the like prevent the supply meeting the demand. The demand may also be artificially high because of welfare benefits attracting immigrants who would otherwise not be here, and restrictions by other nations on immigration preventing people from leaving the country, amongst other things.

[Peter]

"Supply and demand seem to be moving, more or less togeter"

Cobblers. The shortage in new-build in the UK is at least 20% per annum. This is cumulative, so prices will continue to outstrip earnings growth for the forseeable future.

The only solution is to abolish the greenbelt and permit limited development, subject to local planning approval. Other actions should include a blitz on empty properties, eg. automatic compulsory purchase at market value after a set period.

[Peter]

I also meant to post that I find it deeply offensive describing nurses, police officers and teachers as "parasites".

I can think of many better examples of that term, such as many of the so-called "wealth creators" in the City of London and their banker (yeah, it rhymes with ......) allies.