Monday, October 22, 2012
Workers need housing benefit
Benefits warning over workers
Surge in workers heading up to a million who also need housing benefit. Conclusion that rents would be lower if housing benefit wasn't stuffed in at every possible opportunity to ramp up the price, is not drawn. If you like these workers tax contributions are diverted to their landlords.
Posted by stillthinking @ 04:37 AM (1126 views)
3 thoughts on “Workers need housing benefit”
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Loneranger says:
Unbelievable response by Housing Minister Prisk, 3 million rely on rented accommodation and he highlights plans to guarantee funding for a miserly 15,000 homes and some public sector land proposal for building 100,000 new homes! Is it just me or are there others who feel this is comparable to applying a band aid to a broken leg?
Beyond belief…….
ontheotherhand says:
Interesting way of looking at it stillthinking – that it is a state mandated private tax. I’m trying to follow the big picture trail of cash flow and asset prices here. To pay this benefit, the state taxes others and borrows secured on the future tax of future tax payers. This cash creates demand that keeps rents high and keeps house prices high. These high rents/high yields attract new buy to let investors, who mop up the low volume of properties coming up for sale.
Does that make this the opposite of QE in some ways? i.e. QE aims to manipulate down the yield of bonds/cost of money; housing benefit growth aims to manipulate up the yield of property/cost of housing.
mark wadsworth says:
ST: ” these workers tax contributions are diverted to their landlords”
yes, that’s what Home-Owner-Ism is all about, turning national wealth into private profit for landowners.