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Debate House Prices
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Comments
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HAMISH_MCTAVISH wrote: »So what?
Market prices deal with the reality as it exists, not some fairy tale of what might be.
Rents are set by supply and demand.
Unless you're a council tenant, in which case rents are subsidised by the state at below market value.
If you build another million council houses, and do so before population rises, then rents will fall.
Until then, council rents are subsidised, and there's no other way to put it.
So a council can get an acceptable return on their investment at a lower charge ..meaning a loss of profit might be incurred ..but no actual subsidy is being paid ?
An entirely different business model may use a different formula ?0 -
So a council can get an acceptable return on their investment at a lower charge ..meaning a loss of profit might be incurred ..but no actual subsidy is being paid ?
A "loss of profit" is a subsidy.
In the same way that a tax cut for one group of people has to be subsidised by others who end up paying more....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »A "loss of profit" is a subsidy.
In the same way that a tax cut for one group of people has to be subsidised by others who end up paying more....
So I own a business.
I make a rather healthy profit and choose to pay my staff a pound more than minimum wage ..
I go down to the factory floor and complain that I am fed up of subsidising them ..I wonder how long before my workforce start throwing stuff at me.
calling something a subsidy is not a correct description of what is happening ..in either case.0 -
tinkerbell28 wrote: »Yes but it won't be funded by the taxpayer either. It's an advance of pay which he will have to pay back, out of his pay.
His tax code will change as he will actually be paying more tax. So in fact, anyone who takes a loan over 5k is giving more money direct to the tax man.
Plus as I've said, I wouldn't be making plans on him qualifying. Not a new recruit at 18.
No he's not counting on it
Are you talking about the current scheme or the one starting in April and assuming it's just a scheme extension?0 -
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HAMISH_MCTAVISH wrote: »So what?
Market prices deal with the reality as it exists, not some fairy tale of what might be.
Rents are set by supply and demand.
.
So HPI and the resultant increase in rents, that need to be covered by HB aren't good for the taxpayer.
£20bn a year and rising, has been quoted.
Nice to see you back BTW and not just on the bottom of Sibley."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »So HPI and the resultant increase in rents, that need to be covered by HB aren't good for the taxpayer.
So build some houses then.
Both HPI and RI are nothing more than the result of a massive shortage of housing.
Build more houses, they're badly needed.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Why not? Current market rent is set by current conditions. Objectively council tenants pay less than this.
It's a subsidy - call it something else if you like.
Any idea how what proportion of council house tenants pay rent in full theses days, without any for of benefit apart form universal things like child benefit?
How many are pensioners who would otherwise need additional pension guarantee tops etc?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Any idea how what proportion of council house tenants pay rent in full theses days, without any for of benefit apart form universal things like child benefit?
How many are pensioners who would otherwise need additional pension guarantee tops etc?
No idea. Why?0
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