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We don’t need a bigger housing divide!

August 21, 2012

Mr Shapps your killing us!

The Political Idealist

You will probably have heard by now of the Housing Minister’s endorsement of a plan to sell-off high-value council houses, build cheap houses elsewhere, and pocket the profit made. In other words, they want to sweep the underprivelleged out of quality houses in pleasant areas, and complete the process of ghettoising low earners. Unsurprisingly, this has proved unpopular with the progressive wing of British politics, though we have yet to see if this becomes official Government policy.

One myth perpetuated about council housing is that it is state-subsidised. All that the state pays is the Housing Benefit bill, which is highly inflated due to the fact that working families simply cannot pay the rent demanded by private-sector landlords. In fact, the nationwide stock of council housing returns a modest profit, even with rents being a fraction of market levels. What does this say about the state of the housing market?…

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