Ed M needs to understand this. His plan to build 200,000 homes will not succeed if he leaves it to private builders. They will hoard land and release it slowly to maintain profit margins. Labour must directly employ builders if it wants to meet its targets. These homes must be at affordable rents, not £600 per month. It is basic economics. £600 a month spend in rent, is £600 that makes its way via landlords/Mortgages to banks and not back into the economy. It is £600 a month that means some have children in poverty. It is £600 a month that for some is subbed by the state in housing benefit. Which means some landlords raise rents in the knowledge the state will pay for them. Labour should end buy to let mortgages, impose a punitive tax on 2nd homes and not allow homes to stand empty for foreign investors. £16bn spent each year in housing benefit can build another 266,000 homes per year and employ 2 m workers. Housing ben will become unsustainable, so use it now, while still there and build. It will not be debt, as it will be paid back by affordable rent. if we can spend £300 bn in quantitative easing for banks, we can spend a little of that amount on housing. Get smart, labours plan is good, but not radical enough.
Posted on: Wed, 24 Dec 2014 13:41:52 +0000
Trending Topics
Recently Viewed Topics
© 2015