Monday, December 4, 2017
People are broke because of housing costs
There's a massive problem here. It's not that people are having their benefits frozen. It's not that housing costs have risen so high. This tells me that housing costs are unnaturally high. We see state subsidy of housing in two ways: Help To Buy helps people afford otherwise unaffordable purchases - and of course, prices will rise by exactly the amount of this subsidy. On the rental side, we see that benefits help(ed) people afford otherwise unaffordable rents. In short, this means that government money is going directly into the pockets of property development investors (who buy early stage off-plan and sell to the end-buyer) and landlords. And we just sit there and watches as our money gets siphoned offshore, tax-free and hear this is a triumph of the "free market". BS, I say.