by Suff » 21 Feb 2015, 10:24
The biggest problem with the housing crisis is that Councils now no longer build houses. Or at least very few. I'm guessing that it is part2 of Maggies scheme which was never implemented.
Par1 was to get the properties out from council hands, virtually give them away to workers who could then make a killing on them and also remove the income from the councils, thus killing two birds with one stone. First they removed the security blanket of workers who might want to strike by making it impossible for them to do so unless they had the money to pay their mortgages/utilities. Second they made the councils totally beholden to Westminster funds and local taxes.
In Scotland, the canny Scots got round the issue of building properties which might then be force bought 3 years later by tenants, by building in public private partnership with Housing Associations. Because the properties were already partly private, the law forcing councils to sell their property if a tenant wanted to buy did no apply. This allowed them to build decent housing of the size they required and keep getting the rent from it. Or at least some of it.
What I believe phase2 should have been is to limit the tenant purchases to properties 25 years old or over. This would allow councils to build council housing, provide it to those who need it and recoup the costs (plus more), before it becomes available to be purchased. In that way there would never be a shortage of housing for those who really need it.
Notably, no government, since that time, has done anything about this. In fact, Labour in Scotland were trying to drive this to the limits and break up the big estates by mandating that smallholders working on large estates were to be able to force purchase from private owners. It didn't go through, that I know, but this is Labour for you. Buy votes rather than do something sensible...
I believe that what I've outlined above is all that needs to be done, both to redress council earnings and to provide available and affordable housing to those who need it most.
There are 10 types of people in the world:
Those who understand Binary and those who do not.