EastSussexOx
Level: Billy Beechers
(7 Apps)
To address your points one by one
1) If the tenant has the money and could have purchased a house, why are they renting in the first place?
Currently it is impossible to pay for a deposit due to astronomical rents - if rents were controlled (as per first proposal) and tenants were offered reduced purchase prices under a right to buy scheme as proposed in point five - a greater proportion of tenants could afford the properties they lived in.
2) Where will the council get the money from to buy all of these houses? We're broke incase you missed that.
We are not broke - we are still 5/6 largest economy in the world - we are just getting more unequal with more wealth accumulating a the top due to political choices over the last 40 years. There are a wide range of green policies designed to address council finances from levying land value taxes and other wealth taxes on multi-millionaires and billionaires to equalising capital gains tax (I don't have an exhaustive list off the top of my head), but as quoted in this policy doc they would be looking to move towards a Land Value Tax levied on Owners, not Tenants. No Exceptions. Business Rates on AirBnBs/Short Lets. No Exceptions. Double taxation for empty properties. Put National Insurance on Private Rents. These would raise revenue to help support councils to pay for RTB.
For the subset of properties that neither tenants nor councils buy, these would return to the open market. Given we have a challenge of housing supply this would reduce or dampen down property prices which leads to point three...
3) I assume you don't own your own home then? Do you understand negative equity and what it would do to those that are remortgaging when the prices collapse.
I think this is a fair point. By the way I have a mortgage and have experienced negative equity when re-mortgaging - bought at peak in 2006 and mortgaged in 2010 during a brief slump in house prices and it did have a financial impact. I would be surprised if this policy led to the sorts of collapses that led to prices falling significantly so that the majority of people fell into negative equity, however definitely concede that any risks of defaulting mortgages should be looked at as part of a holistic housing policy and it feels like a gap that needs addressing. I think mortgage lending policy needs better regulation also (though this would also impact on house prices).
On balance though we cannot continue with a status quo that is currently leading to record levels of homelessness, including child homelessness as private rental costs are out of control - The average monthly rental price across the UK is £1,344 - before bills or council tax (much higher for larger properties - big enough for families or properties in the South East) which has led to record levels of homelessness. This feels like a much bigger social risk than the possibility of a small subset of households experiencing negative equity.
Apologies for calling you right wing (or making assumptions in general) - for some reason I thought you were a Reform supporter (and given there pro supporting tax evasion, corporate tax cuts, welfare cuts, council cuts and privatised NHS agenda sounds pretty right wing to me - before we get on to their views on minorities).
1) If the tenant has the money and could have purchased a house, why are they renting in the first place?
Currently it is impossible to pay for a deposit due to astronomical rents - if rents were controlled (as per first proposal) and tenants were offered reduced purchase prices under a right to buy scheme as proposed in point five - a greater proportion of tenants could afford the properties they lived in.
2) Where will the council get the money from to buy all of these houses? We're broke incase you missed that.
We are not broke - we are still 5/6 largest economy in the world - we are just getting more unequal with more wealth accumulating a the top due to political choices over the last 40 years. There are a wide range of green policies designed to address council finances from levying land value taxes and other wealth taxes on multi-millionaires and billionaires to equalising capital gains tax (I don't have an exhaustive list off the top of my head), but as quoted in this policy doc they would be looking to move towards a Land Value Tax levied on Owners, not Tenants. No Exceptions. Business Rates on AirBnBs/Short Lets. No Exceptions. Double taxation for empty properties. Put National Insurance on Private Rents. These would raise revenue to help support councils to pay for RTB.
For the subset of properties that neither tenants nor councils buy, these would return to the open market. Given we have a challenge of housing supply this would reduce or dampen down property prices which leads to point three...
3) I assume you don't own your own home then? Do you understand negative equity and what it would do to those that are remortgaging when the prices collapse.
I think this is a fair point. By the way I have a mortgage and have experienced negative equity when re-mortgaging - bought at peak in 2006 and mortgaged in 2010 during a brief slump in house prices and it did have a financial impact. I would be surprised if this policy led to the sorts of collapses that led to prices falling significantly so that the majority of people fell into negative equity, however definitely concede that any risks of defaulting mortgages should be looked at as part of a holistic housing policy and it feels like a gap that needs addressing. I think mortgage lending policy needs better regulation also (though this would also impact on house prices).
On balance though we cannot continue with a status quo that is currently leading to record levels of homelessness, including child homelessness as private rental costs are out of control - The average monthly rental price across the UK is £1,344 - before bills or council tax (much higher for larger properties - big enough for families or properties in the South East) which has led to record levels of homelessness. This feels like a much bigger social risk than the possibility of a small subset of households experiencing negative equity.
Apologies for calling you right wing (or making assumptions in general) - for some reason I thought you were a Reform supporter (and given there pro supporting tax evasion, corporate tax cuts, welfare cuts, council cuts and privatised NHS agenda sounds pretty right wing to me - before we get on to their views on minorities).