The myth of the advantages of home ownership, like all good myths, has an element of truth in it. It is an advantage to own your place of dwelling.
The problem arises not so much because people in Britain are daft and plagued with a false consciousness on the issue, but because political power has rigged things so people have an interest in buying their home on mortgages, whether they can afford to do so or not.
A nation is debt is a servile one.
Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts
15 November 2010
2 November 2010
Why social cleansing will happen
Social cleansing will occur; only its extent is uncertain.
In the private sector, there will be cases where the diminishing ability of tenants to pay (unemployment, cuts in housing benefit) will cause the landowners to decrease rent; this will be particularly so in bedsit-land and in the junk estates. Alternative tenants with more money simply don’t exist.
In those areas, especially London, where there are potential tenants who can afford the existing rent levels, only philanthropic landlords will reject the route of attempting to dump their existing tenants and seek out higher paying ones.
Forcing people out of their homes is one of the most traumatic things that can happen to a person. Expect incidents of family breakdown and suicide to increase.
In the private sector, there will be cases where the diminishing ability of tenants to pay (unemployment, cuts in housing benefit) will cause the landowners to decrease rent; this will be particularly so in bedsit-land and in the junk estates. Alternative tenants with more money simply don’t exist.
In those areas, especially London, where there are potential tenants who can afford the existing rent levels, only philanthropic landlords will reject the route of attempting to dump their existing tenants and seek out higher paying ones.
Forcing people out of their homes is one of the most traumatic things that can happen to a person. Expect incidents of family breakdown and suicide to increase.
29 September 2010
Some notes on a housing policy
On Walter’s post on housing: my suggestions
Mortgages of over 50 percent of purchase price prohibited. Result: collapse in demand and of land prices.
Building of public housing for rent. Rent level to recoup building cost over 25 years.
Public housing made available to pre-defined groups (e.g. workers earning under 15K, workers with children, etc.)
How to ration within the group? Through money: the one who buys the most expensive saving bond, gets the tenancy. Housing bond cannot be redeemed during tenancy. Housing bond used to provide credit for new house building.
New Land tax. 1% of property value per year. Every person gets a land tax credit of 1000 pounds.
E.g. couple in 180 000 house. Tax: 1800; credit 2000: land tax nothing.
Person in 450 000 house. Tax: 4500, credit 1000 – Land tax 3500 per year.
Mortgages of over 50 percent of purchase price prohibited. Result: collapse in demand and of land prices.
Building of public housing for rent. Rent level to recoup building cost over 25 years.
Public housing made available to pre-defined groups (e.g. workers earning under 15K, workers with children, etc.)
How to ration within the group? Through money: the one who buys the most expensive saving bond, gets the tenancy. Housing bond cannot be redeemed during tenancy. Housing bond used to provide credit for new house building.
New Land tax. 1% of property value per year. Every person gets a land tax credit of 1000 pounds.
E.g. couple in 180 000 house. Tax: 1800; credit 2000: land tax nothing.
Person in 450 000 house. Tax: 4500, credit 1000 – Land tax 3500 per year.
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