Government and developer Gilbert Lopes deserve credit for completing the Loughlands housing project in Paget, which has resulted in 96 Bermudian families becoming homeowners for the first time.

But the process by which the project went forward and enabled the homes to be sold is a good example of how difficult it is for private developers to make this kind of deal work.

The development, whose last phase was completed last week, was first announced in 2006 and has therefore taken four years to reach fruition.

It's also worth noting that the project would never have happened if the tourism industry was in better shape. Loughlands was sited on land zoned for tourism and it was only when it was clear that a hotel project would be unviable that Mr. Lopes' thoughts turned to housing.

A change of zoning was approved by Tourism Minister Ewart Brown and the land, much of it open space, then required a special development order from the then Environment Minister, Neletha Butterfield. Customs duties then had to be waived by Finance Minister Paula Cox.

Housing Minister Sen. David Burch was well within his rights to laud Cabinet for working together to get this done, but it also shows how many hurdles confront the ordinary businessperson in trying to see projects in Bermuda through to completion.

That Cabinet backed this idea is not completely surprising. It reflects a general acceptance that home ownership is good for society – and good for governments. In general, it leads to greater social stability in neighbourhoods, more responsible behaviour and gives people a solid financial platform and collateral from which to generate more financial security. The recent sub-prime housing crisis in the US suggests that this can go too far, since that crisis was engendered in part by a bi-partisan effort in the US to make home ownership easier through tax relief, low interest rates and legislative efforts. The evidence now is that such a policy can be disastrous if home values fall and borrowers are left with negative equity.

It is to be hoped that this is not the case with Loughlands, and it is likely that the prequalification by the Bermuda Housing Corporation, coupled with its tacit support for the project, means it will be fairly stable. But there should still be some caution, especially if the Bermuda economy remains weak.

And there is a political element to this too. In theory, the homeowners will remember the politicians and political party that made all of this possible and express their gratitude with votes at the next election. The United Bermuda Party benefited in this way when it converted public housing into owner occupied homes (over heavy objections at the time) and it is likely that the Progressive Labour Party will benefit now.

And there is no doubt that home ownership remains an area of frustration for many who felt – and still feel – blocked out of the market by high home prices. As Sen. Burch said: "More than housing, this project represents genuine economic empowerment. Young professionals who could not see a means of 'owning a piece of the rock' soon learnt that this Government's commitment to same was not just words."

That frustration was especially true in 2006 as Bermuda's overheated economy forced real estate prices ever upwards.

There is a risk now that what seemed like a good idea then will now be taken up with too much enthusiasm. The problem confronting Bermuda now is not so much house prices, which have weakened, but incomes as the Island grapples with the economic downturn. The likely reduction in the number of people on the Island should also increase supply, but that will be of scant satisfaction to people if their incomes have been reduced.

So the best solution to helping home ownership now is to get the economy moving again.