2 thoughts on “Help to Buy is worrying but the real problem is inflexible housing policy”

  1. Posted 01/08/2013 at 22:13 | Permalink

    it is useful to cross-refer to the ons site for information to interpret the changes:
    http://www.ons.gov.uk/ons/rel/census/2011-census-analysis/a-century-of-home-ownership-and-renting-in-england-and-wales/short-story-on-housing.html

    8.3 million rent homes of a housing stock of 28 million. 2 million would be students, a high number of temporary workers from overseas and also, where the highest % of rental properties are located, London, properties are rented out where affordable housing does not exist and others only remain at the property in the working week and return to the family home out of the city at weekends

    the housing stock has been increased since 2001 from 21.7 million to 23.4 and although the rented properties have increased, the % rented has not.

    this document suggests the move towards higher private rental was a planned one: https://docs.google.com/viewer?a=v&q=cache:dYmJKj8gcZYJ:www.bshf.org/scripting/getpublication.cfm?thePubID%3D46C4A5EA-15C5-F4C0-99C662FE48B048B9+distribution+of+housing+stock+in+the+uk&hl=en&gl=uk&pid=bl&srcid=ADGEESiSLMgdb_oaqNLIyRHnZH8ACBDdtYGNUd6Tp78a25IHtAJDGj3-AOJgqeGPiSSKobJZrI_K6p8x7jke8STQA_IaKgZiK3dP6WXs0Y5Rh6duaWI4BNfJyKzpY6T84Y0BqhuR7kbl&sig=AHIEtbTcpjpJjWY4Onuh43v1WFHbaddvkQ

    The quote on the ONS webpage that there was less social housing is because the employers in heavy industries generally owned the properties that their employees lived in and deducted rent from their incomes at source. When the heavy industries ceased business, the properties were sold to the local councils at peppercorn value. The right to buy scheme may have helped, however, people were left with mortgages and no local employer to work for to pay their debts in many cases.

    It is good to read that home ownership, mortgage awards are on the increase, however, it is worth the young watching the end results of those who have just reached the other end to see if it benefits the sacrifice in the end

  2. Posted 02/08/2013 at 11:31 | Permalink

    You had me at “Milton Friedman once observed that…”

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