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The Uk's Housing Policy Is Surely Madder Than Venezuela's

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The UK's housing policy is surely madder than Venezuela's

Ed Miliband's promise to protect tenants addresses just some of the symptoms of this profound crisis

http://www.theguardian.com/commentisfree/2014/may/04/housing-policy-madness-ed-milibands-rent-reforms-landlords-tenants

A very good article on the state of UK housing market by Andrew Rawnsley.

The gist is that Labour have woken up that there is a lot of dissatisfaction amongst renters hence the recent policy announcement. The Tories will need to react as like the Labour energy bill policy this will go down well with swing voters.

Not enough social housing housing has been built for the last 30 years instead majority of money is spent on housing benefit.

NIMBYS are getting in way of solving the problem but they tend to be core Tory voters who'll defect to UKIP.

HTB is a crazy policy against the values of free market Tories and counterproductive and most in the party know this.

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Excellent article yep.

I have no idea how the private rented sector is controlled in Caracas and I would wager a fistful of bolivars that Grant Shapps hasn't a clue either. That did not stop the Tory party chairman – or whoever spits out press releases in his name – reacting to Ed Miliband's proposed reforms before they'd even been announced by frothing that Labour was planning "Venezuelan-style rent controls".

On past form – you may recall the response when the Labour leader came up with his freeze on energy bills – the following will happen. We will have a few days of Tories echoing their party chairman by denouncing Mr Miliband as a crazed red who cribs his policies from Hugo Chávez, then a few days of panic at Number 10 when his pollsters inform David Cameron that the Labour promise is rather popular with their focus groups, and then the coalition will play me-too catch-up and try to scrabble together its own offer.

Coalition ministers understand that something needs to be done, but their efforts to find solutions have been compromised by a reluctance to accept that this is a huge market failure along with the resistance to new building in the Tory shires. This side of the election, that won't be confronted more aggressively by a Conservative leadership terrified of leaking any more votes to Nigel and his little shop of Farageiste horrors. So they have fallen back on short-term wheezes, notably Help to Buy, a scheme that is a distraction from the central problem, at best, and, at worst, a gimmick that will make it worse. Whenever I break bread with Tories, I like to torture them by inquiring what a free-market, small-state party is doing handing over government subsidies for the purchase of private homes and in the process putting taxpayers' money at risk in the event that the buyers default. My victims usually respond by giggling defensively. The most loyal protest that it is stimulating new building. But the government's own figures suggest that most of the homes sold under the scheme would have been built anyway. Tory MPs indicate the main purpose of this policy when even they joke that it should be called "Help To Buy Votes". George Osborne let the tactic out of the bag a few months ago when he told the cabinet that a boom in house prices would do no harm to their re-election prospects.
The 1970s has a generally bad rep as a decade, but they got at least one thing a lot more right then. They did some building. About four-fifths of public spending on housing was devoted to constructing homes while just a fifth was paid out in benefits to assist people with their rent. Over the current four-year spending period, less than £5bn has been allocated to building homes and £95bn has been earmarked for housing benefit. Spending more than 20 times as much subsiding rents as we do building new homes. There is only one word for this: madness.

Spot on.

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LOL! Time to close this forum - he summed it up in one paragraph:

The result is that Britain, a wealthy and resourceful country with 90% of its land still undeveloped, cannot perform that most basic of functions: it cannot properly house its people. Among the baleful consequences, there is misery for some and resentment among many; a widening of property inequality between the classes and the generations; and a massively high bill for housing benefit. Britain's economic potential is weakened by tying up too much wealth in unproductive brick and mortar purchased at inflated prices. The mobility of the workforce is badly impeded when people who want work can't get to the available jobs unless they are prepared to travel increasingly ridiculous distances. Disparities of wealth, the topic made newly fashionable by Thomas Piketty's bestselling book on the subject, have often been exemplified in Britain by property inequality. While millions of the "hard-working families" of cliched political discourse find the property ladder has been pulled up beyond reach, an anonymous eastern European buyer has just set a new record by forking over an eye-popping £140m for a penthouse in Knightsbridge.

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I think some bits are a bit off. Right to buy is of course consistently vilified by the left, however, at the time, the UK was a very different place. Population growth was low to non-existent in the 70s and 80s, and no one could have forseen the vast increase in immigration and demand for housing since 1997.

Its rather desperate to go the 'blame thatcher' route (her deregulation and finanicialization of the economy has certainly been a disaster) but the failure re: housebuilding is something that Labour should take the majority of blame for. They opened the doors to mass immigration and failed to provide the necessary policy adjustments to cope with it.

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The result is that Britain, a wealthy and resourceful country with 90% of its land still undeveloped, cannot perform that most basic of functions: it cannot properly house its people. Among the baleful consequences, there is misery for some and resentment among many; a widening of property inequality between the classes and the generations; and a massively high bill for housing benefit. Britain's economic potential is weakened by tying up too much wealth in unproductive brick and mortar purchased at inflated prices. The mobility of the workforce is badly impeded when people who want work can't get to the available jobs unless they are prepared to travel increasingly ridiculous distances.

That could have been lifted straight out of many articles written in the 80s including the guardian. Exactly the same words.

Just saying.

The LibLabCon are all just time wasters. They are the LibLabCon shop of horrors.

Edited by billybong

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I think some bits are a bit off. Right to buy is of course consistently vilified by the left, however, at the time, the UK was a very different place. Population growth was low to non-existent in the 70s and 80s, and no one could have forseen the vast increase in immigration and demand for housing since 1997.

Its rather desperate to go the 'blame thatcher' route (her deregulation and finanicialization of the economy has certainly been a disaster) but the failure re: housebuilding is something that Labour should take the majority of blame for. They opened the doors to mass immigration and failed to provide the necessary policy adjustments to cope with it.

Yes, whilst it's never a bad idea to blame Fatcha... on this occasion, I think Richard Nixon should shoulder the lion's share.. :)

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I think some bits are a bit off. Right to buy is of course consistently vilified by the left, however, at the time, the UK was a very different place. Population growth was low to non-existent in the 70s and 80s, and no one could have forseen the vast increase in immigration and demand for housing since 1997.

Its rather desperate to go the 'blame thatcher' route (her deregulation and finanicialization of the economy has certainly been a disaster) but the failure re: housebuilding is something that Labour should take the majority of blame for. They opened the doors to mass immigration and failed to provide the necessary policy adjustments to cope with it.

and kept it quiet and lied about it and pretended there weren't huge amounts until it became too obvious. Even then they denied it was happening to the extent it actually was.

Edited by billybong

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Whenever I break bread with Tories, I like to torture them by inquiring what a free-market, small-state party is doing handing over government subsidies for the purchase of private homes and in the process putting taxpayers' money at risk in the event that the buyers default. My victims usually respond by giggling defensively. The most loyal protest that it is stimulating new building. But the government's own figures suggest that most of the homes sold under the scheme would have been built anyway. Tory MPs indicate the main purpose of this policy when even they joke that it should be called "Help To Buy Votes". George Osborne let the tactic out of the bag a few months ago when he told the cabinet that a boom in house prices would do no harm to their re-election prospects.

Well, now the chancellor has got the boom he wanted, in London and parts of the south anyway. Prices in the capital are soaring at a double-digit rate. In a past incarnation, as housing minister, Grant Shapps once made the observation that house price bubbles were "crazy". Now his government is stoking a boom that satisfies the dream of owning a property for a few at the expense of making it even less realisable for the many.

Nice to see this being pointed out somewhere other than on HPC- The utter hypocrisy of the party of 'free markets' subsidizing the purchase of private homes is something most of the MSM have carefully avoided.

Cameron likes to portray Milliband as some kind of raving socialist when in reality he and his chancellor are responsible for the most socialist policy initiative in the past 20 years- a taxpayer funded attempt to manipulate the private housing sector in the form of Help to Buy.

Who could ever have imagined the party of Thatcher would be reduced to this? I disagreed with almost everything Thatcher did but at least she had principles- unlike her successors who it seems would abandon everything they ever claimed to believe in to get themselves re-elected.

And the joke is that it's all backfired anyway- far from being seen as the saviour of the aspirant middle class home buyer Osborne is viewed as making their situation worse by inflating prices! :lol:

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I think I will always enjoy the irony that on HPC the most common explanation for the shortage of housing in the UK is immigration, and the most commonly offered solution is for young Britons to emigrate.

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Spending more than 20 times as much subsiding rents as we do building new homes. There is only one word for this: madness.

And how can you discuss housing with ANYONE who refuses to recognize the complete, nation destroying insanity of this. The left (my side) are also completely blind and prefer to waffle on about the non-existant 'bedroom tax than deal with the elephant in the room.

UK politics appears, at the moment, to be dead in the water.

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Spending more than 20 times as much subsiding rents as we do building new homes. There is only one word for this: madness.

It's only madness if it's your money that's being wasted on HB. If on the other hand you are one of those who stands to gain by tax payers money coming straight into your and your friend's pockets via BTL, and you're in charge of setting the policy which funnels the money your way, I would think that the correct word probably begins with f or c...

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I think some bits are a bit off. Right to buy is of course consistently vilified by the left, however, at the time, the UK was a very different place. Population growth was low to non-existent in the 70s and 80s, and no one could have forseen the vast increase in immigration and demand for housing since 1997.

Its rather desperate to go the 'blame thatcher' route (her deregulation and finanicialization of the economy has certainly been a disaster) but the failure re: housebuilding is something that Labour should take the majority of blame for. They opened the doors to mass immigration and failed to provide the necessary policy adjustments to cope with it.

Whatever she did wrong, there has been ample time to fix it. Ironically if the Conservatives had been more ruthless with her legacy then it would have been held in better regard - instead we are starting to 'blame' it as if it were the root of all subsequent evil rather than solutions for a particular time.

What we are left with is a form of financial crisis, and one that Labour also contributed to rather than recognising and dealing with. That said it is pretty depressing on a site such as this when immigration is constantly crow-barred into the debate.

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Spending more than 20 times as much subsiding rents as we do building new homes. There is only one word for this: madness.

And how can you discuss housing with ANYONE who refuses to recognize the complete, nation destroying insanity of this. The left (my side) are also completely blind and prefer to waffle on about the non-existant 'bedroom tax than deal with the elephant in the room.

UK politics appears, at the moment, to be dead in the water.

I am perpetually amazed by the fact that a government can get away with complaining about the HB bill while overtly pumping up house prices.

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I am perpetually amazed by the fact that a government can get away with complaining about the HB bill while overtly pumping up house prices.

Someone should tweet milibraindead if he is for house price caps as well as rental caps, and if not, why not...

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I think I will always enjoy the irony that on HPC the most common explanation for the shortage of housing in the UK is immigration, and the most commonly offered solution is for young Britons to emigrate.

Why is that ironic? Not every country is an overcrowded island with stupid planning laws like the UK. The contexts are in many cases completely different.

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Whatever she did wrong, there has been ample time to fix it. Ironically if the Conservatives had been more ruthless with her legacy then it would have been held in better regard - instead we are starting to 'blame' it as if it were the root of all subsequent evil rather than solutions for a particular time.

What we are left with is a form of financial crisis, and one that Labour also contributed to rather than recognising and dealing with. That said it is pretty depressing on a site such as this when immigration is constantly crow-barred into the debate.

Why is it either or? Id like zero net migration AND a reversal of the thatcherite financialization of the economy.

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Why is it either or? Id like zero net migration AND a reversal of the thatcherite financialization of the economy.

For me a major benefit of freedom of movement within the EU is that if life in the UK became seriously (as opposed to mildly) unpleasant I could get out and live in any one of 27 other countries relatively easily. If the UK shut the door to EU citizens then those countries would do the same to UK citizens. Do you really want to be locked inside this madhouse?

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NIMBYs have become like the Trade Unions of the 1970s.

I'm sure the conservatives will be along any minute now to break their power. Just like the 70's they will use whatever tactics that get the job done, knowing that the status quo is fundamentally anti-democratic and fundamentally anti-free market, which as we know all conservatives 100% believe in whatever the political and financial costs to themselves. Thankfully the traditional tory heartlands are full of boomer voters who always vote in the best interests of the nation sacrificing their own concerns to that cause so there 100% won't be any political fallout anyway.

Ahh I need to stop I'm drowning in a sea of irony......

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I think I will always enjoy the irony that on HPC the most common explanation for the shortage of housing in the UK is immigration, and the most commonly offered solution is for young Britons to emigrate.

They only Brits who are likely to be accepted as immigrants are skilled and often well paid folk who most nations would gladly want. I as someone who is against Britains open door immigration policy would gladly accept an immigration policy that targeted such people ... unfortunately we get the un/semi skilled dregs of Europe.

Id never expect a lefty to be able to understand such an obvious concept.

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a massively high bill for housing benefit

its only £25bn or so, thats only a little more than the entire receipts for council tax... :lol:

Staggering, so 100% of ones council tax goes to pay for propping up property prices and the bone f'en idle i.e landlords and unemployable (aswell as the few genuine case)

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Staggering, so 100% of ones council tax goes to pay for propping up property prices and the bone f'en idle i.e landlords and unemployable (aswell as the few genuine case)

Although housing benefit isn't actually paid out of councils money. It's only administered by them. It comes from central government.

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