Housing Inequity - Labour Government

[GOD]

Well, this post isn't about lack of equity in as much as there being an inequality to share in equity!

At the moment within the UK we have a labour government that supports the notion of fair representation of the workers (Its why the Unions actual financially support it) however we have some absolutely gapping discrepencies that I am surprised have never surfaced.

Within the housing market in the UK it is difficult to flex supply, and demand is inflexible. We also have large demand for housing based on large inflows from Europe (IN particular Eastern Europe) who ostensibly allow themselves to live with lower standards of living while they earn funds to send back to their native countries (10 to a house and all the rest of it).

In essence we have a high demand for housing, which pushes values up.

We also have had a government prepared to allow interest rates to fall which has further inflated housing prices as the yield & capital growth exceeded that on bonds.

Thirdly, we have seen very inequitable approaches to the cost of ownership, on one side the Governement allows landlords to claim interest on housing debt as an offset to any rents and furthermore allows claim for deprecation. This cannot be had by any private owner of housing.

While I'm not a communist, it is clear to see that growing numbers of young people are leaving the UK simply because they cannot afford to have a home (with a decent level of quality) and raise a traditional style family. What the Government needs to do is 1) Stop deductions for interest costs and only allow it as an offset against any capital gains on the sale of the property (No deprecation either) and 2) limit the inflow of foreign nationals who have created an over demand for property.

The labour government of Britain has failed young people and forced them into a situation that they must leave UK to have a better quality of life when at the exact time labour is saving its never been as good as it is now.

[GOD]

Just to prove I believe in equity just consider this argument...

Investment in rental housing (In Britain) where the ability to increase housing stock is limited does nothing more than transfer wealth from those who rent to those who own. It does not increase any standard of living or provide any benefit to the economy.

Housing should be an exempted investment and should be the preserve of people to live and create families. Investors should only be allowed to invest in housing if it increases the amount of stock. There is a case for government involvement via registered social landlords (RSL's) to provide some rented accomodation to facilitate migrant workers.