The despair Of The British nation.

Saturday, 4 June 2011

Inevitable Consequences.........................

Or Planned?



Chatterati excitement this weekend leads me to struggle as where to begin on the subject. Maggie's thinking was that house ownership was the preserve of the middle-classes and a stake in a house was a desirable and aspirational thing. Her hopes were that council house sales would build individual asset wealth and release funds for the genuinely needy. Sadly council bosses saw this as a milch cow and diverted much of the revenue into fat salaries and new offices, amongst other things.
Then along comes the socialist doctrine from both stupid UK political dinosaurs. The Tories set about abolishing mortgage tax relief, seized with delight by the Labour lot. Immediately saving for a home became tough. Then we attack family life and married couples allowances, bring in mass immigration and stoke a consumer boom to chuck away those house assets, willy nilly. This same consumer led and insatiable  tax grabbing , bank profit fuelled life-style has us now wringing our hands about the sexualisation of kids.
Furthermore, how can 0.5% savings rates build the huge deposit costs needed?
The Continental model is trotted out as the way to go. Well, this leads to a landlord utopia of massive wealth held by a few again. It also provides a weapon every bit as powerful for the elite as any mortgage debt. Unlike Europe we have a drug and alcohol binge culture and an associated educational failure whereby even finding money to pay rent will prove worse than anything we have seen so far. With millions desperate to find a home the demand will enable defaulters to flood the streets in numbers unprecedented.
I regard myself as more independently minded, politically, as I age but the Oldrightie handle still applies. That is, aspiration aided by good education, responsibility to oneself and to others and a time and place for partying, not every bloody day. The hated word "aspirational" is now the remit of Big Brother and the State. Home ownership and control of one's income is not what "they" want. It's too independent, is that. Ideally large barrack blocks are ideal, as shown below. Have a great weekend.


Entrance to a housing complex of the future, or even next year. Click on the link.


7 comments:

Caratacus said...

"...aspiration aided by good education, responsibility to oneself and to others and a time and place for partying, not every bloody day".

Well said OR; it doesn't get much simpler than that. Add in a bit of common courtesy and we'd be in the forefront of nations once more...

Anonymous said...

Christianity is not insanity.
- Afreaka :-)

Anonymous said...

And what are the ethnic groups of the Landlords,Pray?

Edward Spalton said...

Surely the sole effect of mortgage tax relief and the exemption from capital gains tax on the sale of one's main residence is simply to inflate the price of houses>

Oldrightie said...

ES, inflation is often a result of supply and demand. tax relief and capital gains were meant as aids to ownership. Capitalism should be about aspiration and ownership for many, not a privileged handful of socialists and hypocrisy.

Edward Spalton said...

I know what the INTENTION of this policy was.It's EFFECT was not necessarily the same thing.

Financial deregulation played a part. Until that happened, building societies would generally
(a) demand evidence of previous thrifty habits and the ability to pay (say) 10% deposit.

(b) Lend around twice a husband's basic annual salary - disregarding overtime, bonus, commission etc.

House prices did rise but not
astronomically. The utterly unprincipled lending of 100% plus mortgages at much higher multiples of annual earning (of husband and wife) is something which should have been tackled by legislation and/or different tax treatment of the inflationary increase in house prices.

I can't remember when it was abolished but owner occupiers used to be charged income tax on the notional rent which they could have made if they let the house they were living in!

Oldrightie said...

"The utterly unprincipled lending of 100% plus mortgages at much higher multiples of annual earning (of husband and wife) is something which should have been tackled by legislation and/or different tax treatment of the inflationary increase in house prices."

Spot on Edward. This was the start of the decline we are now suffering.