If there’s a queue for something then that means that – let’s just say something that’s not time dependent, shall we? – the thing is being sold too cheaply. Because if we had supply and demand perfectly in balance that would mean the price was where there were only as many buyers as there were things for sale – no queue.
We can run this the other way around of course. If we set the price too low then we’ll generate queues. This is why it’s tough to get a doctors appointment in the UK, it’s free at the point of use.
So, what’s our analysis here?[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Mums sleep in cars for DAYS to be first in line to buy bargain £160k three-bed homes on Waterloo Road estate[/perfectpullquote]
We’ve days long queues. The price is too low, isn’t it?[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]’I might have to sit here for six weeks’: Mad scramble as desperate would-be homebuyers sleep in their cars and queue for days to get their hands on £100,000 two-bedroom new-build properties[/perfectpullquote]
This is all the result of the government’s help to buy scheme.[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Kitted out with sleeping bags and hot water bottles, the prospective home owners have been ‘camping’ outside the Gleeson Homes sales office near the Kirkholt estate for almost two weeks, with some told they could be waiting for up to six weeks more.[/perfectpullquote]
That scheme obviously making these houses in Rochdale too cheap – as if that were possible, given Rochdale – and our proof of this is that the prices are generating queues.
So, stop the help to buy scheme as it’s too much subsidy. QED.