Government inaction and an out of control market are reasons for the Island?s housing crisis, Bermuda College lecturer Dr Craig Simmons said last night.

A public meeting on housing heard suggestions from the audience ranging from high rise blocks, Government guaranteeing mortgages, abolishing rent control and limiting the numbers of foreign workers as solutions to the chronic problem of unaffordable housing.

Dr. Simmons, who chaired the discussion, said there was no sign of the property bubble bursting because of continuing high demand and greedy speculators buying houses to sell on quickly at a quick profit.

He questioned how committed Bermudians were to owning their own homes when they take more than 130,000 vacations a year spending more than $200 million.

With the average home costing $850,000, this was 17 times the average income, whereas the norm elsewhere was four or five times, he said.

?If you get over six, there is suggestion of a degree of dysfunctionality or market failure. When you get to 17 times, there is something drastically wrong,? he told the meeting at Bermuda College.

Former Housing Minster Arthur Hodgson said even though the United Bermuda Party was kicked out of office, black Bermudians were still afraid of speaking out in case they lost their jobs or mortgages.

The Progressive Labour Party suggested rent control in 1968 and the UBP accepted it, but it only figured out later that poorer blacks who could only afford to rent out cheaper properties were the worst affected by the caps on rent, he said.

The meeting heard that Bank of Bermuda has now removed a clause in its mortgages which prevents the arbitrary recalling of mortgages.

Former UBP Senator and Cabinet Minister Bob Richards said Bermuda was ?awash? with money for housing because the banks made more profit lending money here than putting it in the US where interest rates were so low.

Bill Lusher said high prices were due to high demand and called on Government to relax planning laws to a allow more high density developments to allow affordable housing.

Developer Tony Smith there were high quality pre-fab techniques now available and unless homes prices were reduced, young Bermudians would be forced to leave the Island.