Jasmine6 wrote:Octavius there is nothing wrong with the Right To Buy programme, if anything it has served its purpose which is to lift a great number of Brits to a better station in life as homeowners. What went wrong however is not replenishing this stock of social housing, by not allowing councils to build any more houses and leaving the responsibility in the hands of privately owned companies they opened a can of worms where these big firms were allowed to play on basic economics. Reduce the supply, prices rise and so does the profit
Also culturally Brits want to buy houses so there is always a huge demand until no one can afford it anymore but instead of letting the bubble burst - enter Help To Buy, inflating the bubble even further.
It is not in the interest of the majority for house prices to fall and so they shan't. Politics.
In principle I am not opposed to the Right to Buy programme. But having said that, there is no doubt in my mind that it is compounding the shortage in social housing in general and the shortage in family homes in particular. I have no issue with people in social housing being allowed to buy the council house they inhabit; but the sale should be conditional on them continuing to live in that property, especially if it is a family home that they have bought. Otherwise what starts to happen is that would-be family houses are rented out on a per-room basis, which creates a shortage in family homes.
What needs to happen, once we start to see a sustained period of economic growth that isn't fuelled by low interest rates, is a restriction of the Right to Buy programme, a massive house building project and an introduction of hefty taxes on foreign investors buying houses in the UK. House price should be allowed to drop. They need to drop.