A LESSON FOR THE GOVERNMENT.
[To the Editor of the SPECTATOR.] • SIR,—Much that is contained in the article under the above heading is doubtless correct, but Mitcham, Willesden and Liverpool notwithstanding, the Government's policy is, or, it may be, was, the right one. The fear of tenants that landlords may after decontrol- squeeze them is, of course, a very natural one, but it must be admitted by everybody that the one and only solution is the erection of houses in sufficient numbers to prevent extortion, and so long as control lasts on its present indefinite basis it may be taken for granted that private capital will not be embarked to any appreciable extent in speculative building. Builders may be willing to build and some are building, but only on a very small scale, and chiefly with a purchaser in view. I cannot call to mind a single new house let at a rent. It might be different if an economic rent could be obtained, but it cannot, even though building costs have materially dropped. Capital is very shy, and to secure its employment in the direction desired it must be protected rather than threatened. Failing private capital, the only other source is national capital, but all will agree that the disastrous efforts of the last Government must not be repeated. It follows, therefore, that we have reached an impasse, and the Government's proposed solution would, in the opinion of many, have resulted in a restoration of confidence and the erection of an increased number of houses, though at first these would probably be for sale only.
The Government's financial advisers know what perhaps the ordinary layman does not know, or shuts his eyes to, and that is that a house under control is unsaleable to-day (if the tenant does not want to buy) except to a dealer, who pays less, often very considerably less, than the pre-War value of the house. Let anyone who doubts this ask any auctioneer he knows how many controlled houses let to tenants he has offered for sale by auction within the past few years, and how many such houses he has succeeded in selling? The only houses of a small type readily saleable are those with possession, and the prices of these have dropped considerably. It is a matter for deep regret that more tenants do not seize the present opportunity of acquiring their own houses, as they can do in many cases at quite reasonable figures from landlords sick and tired of control, the sanitary inspector, and the hundred and one trials of control which to-day beset the path of an owner of property, especially of
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