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Labour To Divert Hb To Building Homes

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A radical plan to divert billions of pounds from housing benefit into a major housebuilding scheme are being drawn up by Labour, the party’s work and pensions spokesman said today

Sorry if its already been done..

If not, discuss!

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Its what i would do. After of course changing planning regs and land regs to ensure £1mn builds 15-20 homes rather than 3 rabbit hutches.

Labour wont touch HB though. Too many of their landlord funders have gotten too rich off of it for them to touch it.

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Sounds nice if you're not receiving housing benefits.

You mean everyone would gain from this except the landlords who receive all the money from housing benefit?

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You mean everyone would gain from this except the landlords who receive all the money from housing benefit?

Bingo! Sensible idea, so it probably doesn't stand a chance (As ES said above).

Q

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Hallelujah.

I'm sure they are perfectly capable of screwing the idea up, but still. Can anybody remember any other sensible housing proposals in the last 20 years ?

A few weeks ago and I would have sworn blind it was an April Fools joke.

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High Inflation with a massive house building project is probably one of the better ideas to get out of this mess as long as we would get some decent wage inflation as well.

Lets face it whatever gobbermint gets into power they will do everything to not let house prices decrease because then the banks will be in the Sh%t again.... and after bailing them out to such an extent (which was a bad idea) they won't want to see them fail again.

So the answer is House prices being left behind in a country of Inflation.

I don't like the idea of high inflation but I really can't see a better plan that a government would actually put into action. I suspect Carney will go for the Inflation but I expect he would be more than happy to ramp up house prices with it!!!!

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So it took them 16 years to come up with this idea, 13 of which they were in government! dry.gif

to be fair, they also had the 18 years before that to think of something. So only 34 years in total.

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High Inflation with a massive house building project is probably one of the better ideas to get out of this mess as long as we would get some decent wage inflation as well.

It would have been a really sensible thing to have started a long time ago.

Have they included it in their manifesto yet?

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How do you "divert money from Housing Benefit" into house building? Do the current recipients live in cardboard boxes until the savings add up to the cost of a new house?

I guess they meant to say: "borrow lots of money to build some more subsidised housing, which probably won't reduce the HB bill meaningfully, but will sound good to the kind of people who vote Labour?"

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Presumably it would be necessary to scrap right-to-buy as well (which would be a good thing)

Does Right-To-Buy reduce the total number of homes somehow?

I suggest it would be better for governments to stop pretending to be property developers and just out of the way.

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How do you "divert money from Housing Benefit" into house building? Do the current recipients live in cardboard boxes until the savings add up to the cost of a new house?

I guess they meant to say: "borrow lots of money to build some more subsidised housing, which probably won't reduce the HB bill meaningfully, but will sound good to the kind of people who vote Labour?"

Yup they can't divert meaningful amounts away from HB for the reason you've stated. They can divert some but not enough to build meaningful numbers of public sector housing.

But I disagree with your borrow bit. The gov is QE'ing, it will continue to QE. Put that money into public house building. In the long term it will save a heck of a lot in terms of HB as the newly available housing forces rent costs downwards, and the gov gains an income stream from the incoming rents.

It's a strong long term positive.

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Does Right-To-Buy reduce the total number of homes somehow?

I suggest it would be better for governments to stop pretending to be property developers and just out of the way.

The government has been a property developer for most of the previous century. It's returning to it's historical role in doing this. The neo-liberal nay sayers such as yourself should get out of the way, and let it fulfill it's role in this, as indeed, most voters want it to.

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But I disagree with your borrow bit. The gov is QE'ing, it will continue to QE.

QE is different from borrowing how exactly?

In the long term it will save a heck of a lot in terms of HB as the newly available housing forces rent costs downwards.

There is a great deal of state subsidised housing already. That doesn't seem to be keeping private sector rents low, why should an additional few % increase make any difference?

the gov gains an income stream from the incoming rents.

An "income stream" from tenants currently receiving Housing Benefit. Mmm...

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QE is different from borrowing how exactly?

There is a great deal of state subsidised housing already. That doesn't seem to be keeping private sector rents low, why should an additional few % increase make any difference?

An "income stream" from tenants currently receiving Housing Benefit. Mmm...

QE is not borrowing as it won't be paid back. We all know that. At some point the gov will scrub out the IOU's. You know that too surely?

Prices change because of demand at the margin. A very small increase in supply in a tight market can result in a very very large fall in price. This is particularly true for goods where there is little elasticity in demand - see oil prices. Again, you surely must know this??

Rent's won't all be paid via HB, indeed for most HB is a top up to current income. They pay part of the rent from income, the HB covers the rest. Also even if HB pays all of the rent, it effectively means a fall in current gov expenditure as HB paid and rent payments received cancel each other out.

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collapse_plate1.jpg

Half of all voters are below average intelligence. :unsure:

Then half of all voters are also above average intelligence.

You know what if average intelligence was halved, then still half of voters would have above average intelligence! Isn't that amazing?

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QE is not borrowing as it won't be paid back.

I wonder where all that money comes from then... Who cares, lets just pretend it's a miracle money tree!

A very small increase in supply in a tight market can result in a very very large fall in price. This is particularly true for goods where there is little elasticity in demand - see oil prices.

Why will a small increase in subsidised housing available to a minority affect prices of housing for everyone else? (given as I mentioned it clearly isn't working that way now)

it effectively means a fall in current gov expenditure as HB paid and rent payments received cancel each other out.

Now we have a perpetual motion machine... ;)

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I don't know what makes people jump to the conclusion that this means 'public sector' housing....

Good point. Of course government subsidised "affordable housing" is something of a grey area.

Personally I don't thnk provision of housing should be anything to do with the state.

I agree (obviously).

I don't like the idea of private sector landlords either - but I could live with large pension funds running new build housing estates I suppose.

This would probably make better sense than "investing" in UK government bonds.

But the ideal for me would be a focus on developing a mutual rental sector designed to increase the quantity and quality of homes to rent with a right to buy at market rates after a qualifying period.

Which is hard when the state keeps clumsily interfering in the market (I include HB in this).

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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