Housing crisis or money crisis ?

The National Housing Federation claims the economic downturn has led to a 30% decline in house building in the past two years. Industry figures suggest 122,000 new homes will be built in the year to April 2010 - fewer than at any time since 1923( excluding the war years ).

The lack of new homes being built in Britain has left millions of people living in overcrowded conditions. An estimated 2.3 million people living in overcrowded conditions.

The immediate problem is not a shortage of sites, the major problem holding back the development is the lack of availability of mortgages.
"There isn't enough mortgage finance around," says John Stewart of the Home Builders Federation. "Banks typically require a 20% or 25% deposit. Many first-time buyers just can't find that kind of money."

SOYMB'S solution to the housing problem can be read here