Thursday, July 31, 2008

More gaps in government revenue

Rent Asunder

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.

Posted by stillthinking @ 09:58 AM (236 views)
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9 thoughts on “More gaps in government revenue

  • The right to buy was only ever a government (acting for the establishment) plan to get a previously mortgage-free part of the population into large amounts of bent and hence servitude.

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  • ‘debt and hence servitude’

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  • Mark Wadsworth says:

    I wonder how dependent government revenue is on the housing bubble.

    Very. The whole economy for the last ten years has been driven by the debt/house price bubble.

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  • Wage – yes but who introduced it? Now im not defending the boys in red here but it was introduced by Maggie and why? Could it have had something to do with the fact that Homeowners (at that time at least) traditionally voted Tory? Mark?

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  • Referring to the Nationwide graph on the home page of this site, I see no reason why the size of the next dip won’t simply further the pattern already displayed. I appreciate it’s a rather simplistic view but it does seem that the higher the peak the deeper and more protracted the dip behind it. The housing/debt bubbles have been allowed to inflate to such dangerous levels that housing is going to be in serious doldrums for at least a decade. Assuming I’m right then the dip following this peak is going to be enormous.

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  • crash bandicoot says:

    I know that this question may have been asked before but is it reasonable to expect a 2% YOY growth in prices as on the graph? Where does this figure come from? Is it a long running average or something? Would it require a “change of conciousness” event to prevent it from continuing?

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  • Techieman – I take your point and agree that the Tories under Thatcher got a lot of votes from introducing the right to buy. But I don’t think that was the only reason they did it. I do beleive that it was part of a strategy to get more people into a ‘wage slave’ culture.

    I also think that another part of this strategy was the Thatcherite assault on the Unions.

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  • techieman @ 4 and wage slave @ 7.

    I personally think that as well as enslaving people the RTB ethos was introduced to reduce the power outside whitehall and parliamant. Massive councils and even relatively small ones were incredibly powerful with massive property portfolios and the rent from these was a massive boost to their revenues. It was all part of the daughter-of-a-be-atch. THATCH.

    She hated any power outside of parliament and made soooo much noise about democracy. She sank the unions, she even scraped the 5 biggest councils in the land (London, Birmingham, Sheffield not sure about the opthers), she then, after arranging for the great unwashed to snap up all the council houses, set the bleedin poll tax on us to finish of the working population and enslave them to the property owning boom and bust muck. In one ten year period she changed this country beyond recognition and convinced Bliar/Brown that they TOO should be Thatch’s children.

    And look at the mess the whole caboodle has brought us!

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  • I got to the 3rd paragraph and did some maths. It turns out that “hammering those on the lowest incomes” turns a profit of £97/house this year. Perhaps the poor would rather have a private landlord at double the rent or buy their own place and watch it drop £10k/year.

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