Thursday, July 31, 2008
More gaps in government revenue
Although I don't feel sympathetic to anyone lucky enough to get nearly free state housing, this article makes the point that for Right To Buy, the government gets 75% of the money but the council gets 25%, and this money is not placed back into social housing. Also, sales ( or purchases) under RTB have recently collapsed. I wonder how dependant government revenue is on the housing bubble. There isn't much information in the media about revenue losses but I am starting to suspect they will be colossal. We are dead men walking. I don't think there will be a bottom in 5 years, because that isn't far enough in the future. Time to make alternative plans, housing might not be a good idea for the next decade.