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Should council house rents be at normal market value?


Tony

Should council house rents be at normal market value?  

84 members have voted

  1. 1. Should council house rents be at normal market value?

    • Yes
      41
    • No
      43


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The relationship is one way, house value -> rent, not the reverse.

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Do you believe the high property prices in Crookes and Broomhill are unconnected to the high rental values as a result of the student market? The difference between a house with £400 pcm and one with a £500 pcm rental value is £24,000 over the span of the average 20 year mortgage. Are you seriously saying then, that if a house rental income went up by this margin, it would have no impact on the value of the house?

 

We've never had a pure free market economy in the UK, so I hope you're not suggesting that our market is an example of that failure. We have a moderated, regulated, market, labour failed to regulate the credit industry sufficiently and that has caused a number of problems.

 

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OK then, so we have never had a fully free market economy in the UK, yet the massive economic difficulties we are facing are as a result of the parts which were closest to the pure free market model. Hardly inspires a vote of confidence in the idea of allowing the 'market' to set house prices.

 

It's already been explained at least 3 times.

But once more.

 

Speculation cares nothing for an ongoing return on investment (rent).

 

You seem to think that there are two types of people who invest/speculate in property. Those who buy hoping the house will appreciate and do not rent it out while they wait until it is an optimum time to sell, and those who buy to rent but never consider the possibility of selling up when they think the market is at the top. The line between these speculators/investors is much more blurred than that, and therefore the definition between investment/speculation in the house market is also blurred.

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They're definitely different behaviours. They both involve using money to make more money (something which our entire economy happens to be based on), but they rely on different techniques to make the return.

Why would two words with identical definitions exist? You don't think it's more likely that there is a subtle difference?

 

I never said they were identical.

 

What I said was:

 

The verb to speculate has more than one definition.

 

One is to ponder.

 

Another is to invest.

 

Speculation is a form of investment.

 

I wasn't actually going to reply because I had forgotten why we were arguing. However, having re-read the last few pages and your responses to 'donkey' I feel I must say that you did an excellent job of diverting the argument with your petty pedantry.

 

I understand the point you were trying to make when donkey referred to private landlords as speculators (maybe you were personally offended by this - I don't know), but does it add anything to the debate?

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Referring to all private landlords as speculators detracts from the debate as it implies behaviour that isn't there. It needed correcting. You jumping in to play 2nd pedant didn't help keep the correction short. People buying to let a house are not speculating, that was all that needed saying, there's no discussion to be had, they're investing, not speculating.

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Referring to all private landlords as speculators detracts from the debate as it implies behaviour that isn't there. It needed correcting. You jumping in to play 2nd pedant didn't help keep the correction short. People buying to let a house are not speculating, that was all that needed saying, there's no discussion to be had, they're investing, not speculating.

 

Fair point. Let's move on.

 

I'm still worried though, as to how future rents will be determined. Surely it would be quite expensive to have to re-evaluate all the rents for the city. Or will they go for a percentage rise across the board and leave themselves (the council, that is - or Sheffield Homes) open to legal challenges. I don't know how it will pan out, but either way I suspect it will require a lot of administration at a time when staff are being made redundant.

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