Amol Rajan: Why do we tolerate daylight robbery in housing?

[Rupert_Baehr]

Why do we tolerate daylight robbery in housing?

 

From memory about 70% of the population are home owners. They are also voters. 1. Lower house prices would mean that they would lose some of the money they have "made" over the past 15 years. A sure fire vote loser.

 

Many MP own multiple dwellings that they rent out. 2. Another reason why it's not in their own interests to allow houses to reach an affordable level.

 

1. If you own two or more, you can make by selling one (provided you own fewer houses than you have kids .) House price rises are good for Estate Agents and others (like the government) who can take a percentage of the value, but for the home-owner, they're pretty much irrelevant. There are no pockets in a shroud.

 

2. Why is it in the interest of a landlord for the value of the house to increase? - The monthly rent is going to vary with the demand, not (necessarily) the increase in the theoretical value ... though the insurance premiums will vary (usually upwards) with that increase.

 

It's certainly in the interest of property speculators (who don't actually produce much) to have house prices increase steadily - but that can be controlled by stopping speculation (tax on sales profits.)

 

Houses are (fairly) expensive where I live - but the quality is rather higher than it is in the UK. The restrictions on selling mean that if people are forced to move (job, etc) they tend to rent out their houses. - (Unlike in the UK), there are laws which protect both tenants and landlords.

 

The supply of houses for sale is quite small where I live - but the supply of good-quality rental accommodation is excellent.

 

House prices don't change much.