Saturday, Jan 28, 2012
Home-owners win every time
Guardian: Who really gets government subsidised housing?
Official figures show government spends more money on supporting owner-occupiers than social tenants. In fact, council housing has been making a profit since 2008, which has been paid to the Treasury.
Posted by drewster @ 11:20 AM (503 views) Add Comment
3 Comments
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1. mark wadsworth said...
Well yes obviously.
Assuming somebody is working and lives in a council house all his life, paying the full rent demanded, he will have made a huge net contribution to HM Treasury (or the local council or whoever) and ends up with no "wealth to cascade down the generations".
Up until a few years ago, it was worth biting the bullet and buying a house, sure, the mortgage payments were higher than social rent (assuming you'd ever move up the waiting list) but after fifteen years, the mortgage is paid off and that's the end of it - and HM Treasury has received barely a penny, the council tax is tuppence ha'penny and covers a small fraction of the cost of services provided, and a smaller fraction of the value of services provided to homeowners. And happy homeowner can then sit their preening himself about his wise investment decision.
Therefore, this simple comparison shows us that owner-occupation is massively subsidised. Social housing might well be slightly subsidised as well, but nowhere near to the same degree.
2. tick tock said...
Its funny, you'd almost think that there was a giant Government sponsered ponzi scheme in place, with a colaberative triangle of Government, banks, & mortgage holders!
Imagine that!
Who knew what 'Home Owning Democracy' really meant, & who knows what happens to it once it serves an increasingly small number of the democratic population?
How on Earth, did Governments ever get themselves into the position of having to borrow their own money from Private Banks in order to survive, and how long will the people put up with this non-sensical period of corruption, fraud & maddness?
'I am The Nina, The Pinta, The Santa Maria,
The Noose and the Rapist, The field's overseer,
The Agents of Orange, The Ghost of Hiroshima,
The cost of my desire,
Sleep now in the fire.
RATM.
3. mr g said...
Why should anyone, owner occupiers or tenants (private or social) be subsidised?