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Could the UK be the first to raise interest rates?
Comments
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It's been explained before and explained in my post...Can anyone actually answer Grahams point about why the state can't build say 100,000 houses a year, lets say costing £10 bn, without actually insulting and bullying him.
We have done it before in worse economic times (post WW2).
The markets probably wouldn't be worried about the deficit as the real problem is current spending (pension, health, benefits) not investment spending.
Is it simply public bad private good ?
Building the houses isn't the problem, the problem is building the infrastructure and creating jobs for the demand for those houses to be built in these areas. More immigration may be the answer but we know Graham is against that.
btw, Graham reaps what he sows.0 -
That seems to be £100,000 per home. Why could they not do that?
..because whilst £100,000 to build a house may well be reasonable it won't be much good if that house is in the middle of a field without any associated infrastructure. As we're talking about people who are unable to arrange their housing in the private sector it's safe to assume that the taxpayer will be stumping up for this as well.
Taylor Wimpey are trying to push their margin to 20% on an average selling price of £250k. We routinely hear about new houses being called rabbit hutches but if a new house costs £200k (before profit) what are you going to get for £100k?0 -
If that loss is more than offset by saving from other parts of government spending (HB etc) then it could be an overall saving.
£175 million loss for 2800 properties is equivalent to £62,500 per property.
The thing is, this does not reduce HB as it has been sold to a private company who will want to market properties at a profit.
There is still a need for homes for those on benefits, meaning the government has made a loss AND still needs to pay those on benefit.
It's a lose / lose situation:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Can anyone actually answer Grahams point about why the state can't build say 100,000 houses a year, lets say costing £10 bn, without actually insulting and bullying him.
We have done it before in worse economic times (post WW2).
The markets probably wouldn't be worried about the deficit as the real problem is current spending (pension, health, benefits) not investment spending.
Is it simply public bad private good ?
There have been reports citing we need circa 400,000 houses built per year, meaning there needs to be £40Bn spent per year of £200Bn over a term.
I think I answered this in a previous post without any "bullying".IveSeenTheLight wrote: »How many houses can they build for £20Bn?
When you work it out, they'll need to spend about £40 Bn EVERY year, not just on one off projects.
Over a term, that's an additional £200Bn or so to find.
I think you'll find that the governments are running a deficit and are trying to cut back on spending.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
The state already own thousands of acres of unused land withing the M25. So no infrastructure needed and loads of demand. Renting out at say £1000 per month would show return of better than 10%. And also help alleviate a housing shortage...because whilst £100,000 to build a house may well be reasonable it won't be much good if that house is in the middle of a field without any associated infrastructure. As we're talking about people who are unable to arrange their housing in the private sector it's safe to assume that the taxpayer will be stumping up for this as well.
Taylor Wimpey are trying to push their margin to 20% on an average selling price of £250k. We routinely hear about new houses being called rabbit hutches but if a new house costs £200k (before profit) what are you going to get for £100k?0 -
The state already own thousands of acres of unused land withing the M25. So no infrastructure needed and loads of demand. Renting out at say £1000 per month would show return of better than 10%. And also help alleviate a housing shortage.
The state has thousands of acres of land with roads, schools and hospitals just waiting to have a £100k house plonked on top that could be rented out for £1000/ month?
Problem solved by the sounds of it.0 -
The state has thousands of acres of land with roads, schools and hospitals just waiting to have a £100k house plonked on top that could be rented out for £1000/ month?
Problem solved by the sounds of it.
Guess they just need to declare the £200Bn or so into the budgets (or try to save elsewhere)
They'd also need to manage the skillset but this would be less of a problem moving forward as private companies offload staff as the government becomes a serious construction employer.
Certainly this solution would also help drive down price and rents as they start to address the decades of shortage.
Let me know when this bill is to be passed.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
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