Generation Rent Calls For Landlords To Pay ‘Rent Tax’ To Fund House Building

[rantnrave]

Lower property prices should be the objective of the next government, Generation Rent director Alex Hilton has said.

Hilton said that the nation needs to be weaned off an addiction to capital gain.

Hilton also called for private landlords to be taxed to the tune of £9bn to raise money for a house building programme.

He said that landlords were the main beneficiaries of todays housing crisis, saying that without action, millions of tenants would be living in exploitation.

Hilton, writing for Inside Housing, said that whatever the colour and composition of the next government, its housing programme will be woeful.

He criticised all the major manifesto pledges, dismissing them as bribes to housing association and private tenants that were marginally more useful than a chocolate teapot.

He said no major party has a plan or a leader articulating what ending the housing crisis will really mean.

He said: But we know something else about the new government. It will be weak; either a fragile minority or coalition government or possibly a small majority but weak either way. And thats the right time to make real demands from a Prime Minister. When theyre weak.

Im fed up of hearing that theres no easy way to end the housing crisis. Were not short of options, were short of direction and leadership, and rectifying this is easy.

We actually need only three clear objectives to solve the housing crisis. The first is regulation of housing. I dont want to live in unregulated housing any more than I want to eat unregulated prawn sandwiches or have unregulated water coming out of my taps.

He said the second objective was cheaper house prices; and the third a big pile of cash to build more homes more quickly.

He said Generation Rent want a private rented sector rent tax, raising £9bn from private landlords, whom he described as the principal beneficiaries of todays housing crisis.

Hilton also called for a Secretary of State for Housing.

He argued: We need to know the name of the person responsible for ending the crisis, and whose career hangs on the success or failure of that mission.

These demands, thematic and broad, are whats missing from the Homes for Britain campaign.

These are the demands of a weak government and a weak prime minister behind which the whole housing sector should muster their strength, because the alternative is inaction and vacillation. And the consequence of that will be millions of people living in exploitation, still waiting for the end of the crisis a generation later.

http://www.propertyindustryeye.com/generation-rent-calls-for-landlords-to-pay-rent-tax-to-fund-house-building/

Personally I think the to-do list could be reduced further. Doing nothing, for example, would be a great start. Cancelling HTB and FLS could lead to lots of affordable housing appearing on the horizon.

[19 year mortgage 8itch]

http://www.propertyindustryeye.com/generation-rent-calls-for-landlords-to-pay-rent-tax-to-fund-house-building/

Personally I think the to-do list could be reduced further. Doing nothing, for example, would be a great start. Cancelling HTB and FLS could lead to lots of affordable housing appearing on the horizon.

Isn't that what negotiation is about? Start by asking for the moon on a stick, settle for less?

Give him a chance and your support.

Edited May 6, 2015 by 25 year mortgage 8itch

[campervanman]

Good idea. What is the UKIP take on it?

[SarahBell]

What stops houses being built?

Anticipation of lack of profits.

What stops genuinely affordable housing being built?

Anticipation of lack of profits.

If you want massive house building project then it has to be government led and it has to respond to the stats from the housing associations and councils that tell us 2 and 3 bedroom properties are un-lettable and so millions of one bedroom properties should be built.

Edited May 6, 2015 by SarahBell

[madmax2]

I know this sounds far fetched, but having lived in other countries, owner led builds were the norm.

A house builder builds a house to your spec...*you* (the one without a house) are what drives the housing market. Architects may have some standard plans which for a small fee they customise, or you get a thing you want build to your spec. You give this to the builder, he gives you a quote...you give him money, he starts digging and stuff. It really doesnt have to be more complicated. Honestly.

The restriction was, you buy some land. And the style of house has to be in character with those around you. No 4 story mansions in roads with single story houses. Just...you know..logic.

I dont know why UK has this ass-about-face way of a big builder sitting on land, then only building when they can squeeze maximum pips out of the people paying, and then holding the government hostage via loss of jobs should the market even dare take a downwards spiral.

A builder should, you know, build.

Not own for 5 minutes and then sell at an inflated profit.

Regarding roads and lighting and such, that was government job. For them to put the land for sale, they first had to make streets and put up lights and make drainage available. Once that is done, and only then, are they allowed to sell "housebuilding land" (and thereby take some profit from converting farmland to housing, with the expense being the streets and lights). Private people bought their plot, and then contracted a builder to do what needs to be done.

Edited May 6, 2015 by madmax2

[MarkWeston]

I know this sounds far fetched, but having lived in other countries, owner led builds were the norm.

A house builder builds a house to your spec...*you* (the one without a house) are what drives the housing market. Architects may have some standard plans which for a small fee they customise, or you get a thing you want build to your spec. You give this to the builder, he gives you a quote...you give him money, he starts digging and stuff. It really doesnt have to be more complicated. Honestly.

The restriction was, you buy some land. And the style of house has to be in character with those around you. No 4 story mansions in roads with single story houses. Just...you know..logic.

I dont know why UK has this ass-about-face way of a big builder sitting on land, then only building when they can squeeze maximum pips out of the people paying, and then holding the government hostage via loss of jobs should the market even dare take a downwards spiral.

A builder should, you know, build.

Not own for 5 minutes and then sell at an inflated profit.

Exactly this. Why is this the case here?

[TheCountOfNowhere]

Shouldnt that read.

Public sector workers and all round troughers call for more tax so they can line their own pockets ?

[NewBrit]

Surely any extra tax collected will go towards old peoples pensions and medical care.

[Billy soy]

totally agree. It's about time too. Taxing BTL sounds good, worry about the costs just passed to tenants.

But if it makes BTL less attractive as an investment, then it's offset by less competition and BTL exiting, both I would assume to drive prices down.

The state has got to get back into the social housing game. Building for profit has led to this bizarre system of not responding to demand now and just blaming immigrants.

I like the language and the points, finally some passion.

Secretary of state for housing, accountability? It's almost like forcing the government to do its job. Imagine where grant schapps snd nick boles would be now if they actually had to get results. Down the job centre.

Housing crisis, it's a bit like the war on drugs. Neverending and the government is either losing or not serious about tackling the problem.

[Assume The Opposite]

Either we have more social housing or let the free market correct the housing bubble. We can't let the government take the easy choice and kick the can again. The problem will only get bigger.

[Killer Bunny]

More Socialism is definitely NOT ther answer

#baninterventions

#banHTB

#letmktsetrates

[Si1]

More Socialism is definitely NOT ther answer

#baninterventions

#banHTB

#letmktsetrates

Ideologically I'd love to agree with you

But I don't see the empirical evidence that private sector house building has ever matches the volumes of units needed that the state sector has managed in the past

[Si1]

Either we have more social housing or let the free market correct the housing bubble. We can't let the government take the easy choice and kick the can again. The problem will only get bigger.

Or both. Build social housing and release it to the private sector over an elongated timescale

[Killer Bunny]

Building has NEVER ANYWHERE brought down prices. Letting market do its thing HAS!

[Executive Sadman]

Ideologically I'd love to agree with you

But I don't see the empirical evidence that private sector house building has ever matches the volumes of units needed that the state sector has managed in the past

http://www.theguardian.com/housing-network/2013/apr/19/1930s-house-building-economic-recovery

http://brickonomics.building.co.uk/2011/10/why-a-1930s-style-private-housing-boom-seems-highly-unlikely/

Of course, no green belt back then...most of our 'evil sprawl' (otherwise known as the most desirable houses) were built then.

Until people stop viewing sprawl as a bad thing, not much changes.

[LC1]

I dont know why UK has this ass-about-face way of a big builder sitting on land, then only building when they can squeeze maximum pips out of the people paying, and then holding the government hostage via loss of jobs should the market even dare take a downwards spiral.

A builder should, you know, build.

Not own for 5 minutes and then sell at an inflated profit.

This is the biggest issue, imo. We have a situation where the govt has abdicated all responsibility to private companies, but then it has also simultaneously closed all other avenues with ridiculously strict planning regs and pandering to NIMBYism so that nobody can self build. Another example of political capture by vested corporate interests, as far as I can see. We are here to be farmed for maximum private profit, nothing more. Learn your place, peasants!

[NewBrit]

Ideologically I'd love to agree with you

But I don't see the empirical evidence that private sector house building has ever matches the volumes of units needed that the state sector has managed in the past

The problem is not private sector house building, the problem is the government enforced planning laws.

[Executive Sadman]

Or both. Build social housing and release it to the private sector over an elongated timescale

HA! The nimbies round here were up in arms when there were some private bungalows going to be built. When they got wind there were some social housing with the great unwashed potentially living there they were livid...things like 'im no snob, but if its social housing there will be a rise in anti-social behaviour and my pet cat is very sensitive to noise'

Didnt go ahead, needless to say.

[Si1]

Building has NEVER ANYWHERE brought down prices. Letting market do its thing HAS!

Building cycles seem to happen over longer timescales then you refer to, so these longer waves will be more difficult to see.

But I do agree with you that this is very largely a credit and asset misallocation bubble. There's still a housing shortage to address in the south however, and now is as ripe a time as any to do so.

[Si1]

HA! The nimbies round here were up in arms when there were some private bungalows going to be built. When they got wind there were some social housing with the great unwashed potentially living there they were livid...things like 'im no snob, but if its social housing there will be a rise in anti-social behaviour and my pet cat is very sensitive to noise'

Didnt go ahead, needless to say.

I would imagine that the strength of social housing development is that it is more likely to be able to be forced through in the regional or national interest, like hs2, for example.

[Executive Sadman]

The problem is not private sector house building, the problem is the government enforced planning laws.

Exactly. I could buy a modular home build in Sweden or China or somewhere and stick it on a site here if we really do have a massive shortage of labourers. Off the lorry and in position, hooked up to utilitities in under 48 hours.

The 'debates' were disturbing for the utter lack of ambition.

Sturgeon was the only one who seemed genuine about building...and her numbers were still a 1/3rd of whats needed.

[Executive Sadman]

I would imagine that the strength of social housing development is that it is more likely to be able to be forced through in the regional or national interest, like hs2, for example.

HS2 will go through because of massive compensation payments. No such massive compensation payments exist for those living next to social housing.

[Si1]

HS2 will go through because of massive compensation payments. No such massive compensation payments exist for those living next to social housing.

That's an interesting point.

[SarahBell]

Shelter's FB page today:

Q. What is the root cause of our housing crisis?

A. Decades of politicians not building enough homes.
Our MegaGraph© shows the single, massive failure to provide enough, decent homes at prices people can afford.


Go tell it on the mountain.

[Si1]

HA! The nimbies round here were up in arms when there were some private bungalows going to be built. When they got wind there were some social housing with the great unwashed potentially living there they were livid...things like 'im no snob, but if its social housing there will be a rise in anti-social behaviour and my pet cat is very sensitive to noise'

Didnt go ahead, needless to say.

Did they go a fleshy shade of purple when objecting, and look like they were going to explode?