Carlisle Journal November 30, 1855 Letter to the Editor

Letter to the Editor

TO THE EDITOR OF THE CARLISLE JOURNAL. EFFECT OF THE BUILDING SOCIETY ON THE VALUE OF PROPERTY IN PENRITH. SIR, - I noticed in your paper a week or two ago an account of the operations of the above society during the year last past, from which it appeared that the receipts, as compared with the previous year, had considerably fallen off. It has been contended by parties who have no well wishing to the society that its only effect has been to deteriorate the value of the town's property by the erection of houses in surburban localities.  True it is that property now offered for sale in the town may not reach as much by 10, 15, or even 20 per cent. as it would have brought when the mania for purchasing property, &c., was at its height;  but what was the cause of the mania ? During the few years the Lancaster and Carlisle Railway was in course of construction, a great impetus was given to local trade of every description, such as had never been experienced since Penrith was Penrith.  The effect upon property was astounding, for it rose immediately to a fictitious value, which, in consequence of the depressed state of the money market, it maintained for some years subsequent. Capitalists could get very little for their money, and were glad to invest it at a reasonable rate on real security.  Old houses and barns were pulled down in every direction, and shops and houses built under the impression that rents would be but a secondary consideration to tenants.  Violent excitement or mad speculation are alike cooled or sobered by the operations of time, and the value of property in Penrith is beginning to find its proper level. Shops and houses are standing empty  -  cottage property alone seems to be in brisk request.  In fact, the signs of the times indicate that people who have to live by their industry cannot afford to be reckless.  Property recently sold has brought prices comparatively nominal to what it would have commanded a few years ago. But has the building society been the cause of this downward tendancy: It may to a certain extent, inasmuch as it found a vent for unemployed capital;  yet, who can say that it has not been one of the greatest boons that ever came to the town;  for, previous to its formation, if a man wanted to build for himself a house in a locality where he could get a mouthful of pure air, he must either be in a position to buy a whole field, or otherwise it would have been impossible for him to procure a site. He might almost as well have asked LORD LONSDALE to sell him the Beacon as asked a land proprietor to sell him a housestead of a field;  but the building society has laid out at least two good streets in healthy localities, and we have no reason to suppose that its operations are yet at an end, for the reasons given by the directors for the falling off of last year's receipts are very satisfactory. The chief reasons why property will not bring so much money, are - firstly, the firmness of the money market, and consequent advanced rates of interest;  and, secondly, the heavy additional taxation to which the town has been subjected through the application of the Health of Towns Act. Had the owners of property supported, as they ought to have done, the Joint Stock Water Works Project, they would not have been subjected to the taxation just alluded to;  but they would not help themselves to cleanliness. Consequently sanitary commissioners and sanitary engineers stepped in to their assistance, and the town was permanently mortgaged for 30 years. The heavy taxation may perhaps be a slight drag on the progress of the Building Society, though we have no doubt it will go on and prosper. Already it has put many a poor man into possession of a piece of ground suitable for a homestead, on which he may raise his domicile as soon as his circumstances will warrant the outlay. I have the honour to be, Sir, Your obedient servant, AN ARTIZAN, (Who has been benefited by the operations of the Society). ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

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