Wednesday, April 15, 2015

Tory Right-To-Buy Will Only Drive Up Private Renting

Just when you are mourning the disconnectedness of the elites who run govt, they propose even much worse.

Waking up the other day to hear that the self-proclaimed 'Compassionate Conservatives' plans to sell off what is left of social housing stock, I cant but recoil from the consideration I have had in thinking them a possibility to vote. I would be mad to ever do that under this new circumstance.

With rising housing benefits bill, selling off social housing stock is obviously, not a wise avenue to reducing it soon. So much for a party that claims to be the guru of fiscal responsibility. Yet we know we know that they will not replenish the social housing stock because of their snobbish belief that those on benefits are scrungers. In fact for a govt with the shittest record of home building, the urge to sell what is left is a clear sign that it wont build more. Just like the prodigal son who just want to waste available treasures...

This move will drive up private renting cost because once sold off, the new buyers will rent most of them out at the going exhorbitant rental price in the commercial sector. 

This step will also drive up demands above current need because those priced out of the commercial sector, will find themselves needing social housing and due to diminished social housing, will end up on waiting lists as well as drive up homelessness. And what will follow is increase in housing benefits as govt try to house those in need. The money from the sells would barely reach the banks befroe it fizzles out in renting private properties to make up for demands of social housing.
 
The result from all th above is many more people who has been aspirational to buy will see their savings diminish too as private sector rental skyrockets in response to demand. 

And how can this be fair when private renters like me who are paying over 500% higher than social house renters will neither have no opportunity to buy nor be able to keep saving toward buying due to price increase?

With the above scenarios, it gets worse because govt will build less or nothing, thereby driving up demand and thus causing those in my position more in increased rents, saving becomes even harder.

The increase in housing benefits bill in turn will drive up my tax as govt tries to raise more to meet the demands

If a Tory govt will build more houses, it definitely dont need to sell what is available. You dont discard what you have in hope of replacing it when you dont even have the money to. This is ridiculously callous and irresponsible.

But then it goes a long way to confirm that the Tories are working ever so hard to create more business opportunities for their chums in the private developing markets who are the only winners here. Because they will soon get special rights to buy out those poor social house owners as soon as possible to then develop the so-called affordable new developments.

No comments:

Subscribe by Email