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View becky's Profile becky Flag over the moon 18 Dec 15 6.12pm Send a Private Message to becky Holmesdale Online Elite Member Add becky as a friend

Quote Ketteridge at 18 Dec 2015 3.55pm

Quote becky at 18 Dec 2015 8.09am

Quote Ketteridge at 18 Dec 2015 7.01am

Quote Stirlingsays at 18 Dec 2015 1.57am

Quote reginald_maudling at 17 Dec 2015 11.01pm

hand bag economics

the national budget is not the same as a household budget

Mmmmm...In some ways it is, in some ways it isn't. It's still a budget. Interest on our debt is rising as it would be for anyone in debt who isn't on top of their payments and we have to pay as much on interest repayments as we do on the defence budget.

Sure capital can be raised but completely divorcing it from common sense with statements like yours is apart of the problem.


No it's not it is basic keynesian economics. It makes common sense as a narrative and ideal there shuld be no debt or deficit but since we hocked the nation's finance to bail out the banks we have a national debt and the debate needs to be how to deal with it.
My household budget is fixed,income and outgoings largely set. If there is too much month at the end of the money,as Mrs Ketteridge likes to say,then we stay in. we don't have access to a money printing machine to create new money. This was the problem for Greece it couldn't print money to help pay off debt as it could effect the euro and the value of Germany exports.
Secondly interest rates are at a historic low, it is the perfect time to borrow for sensible long term benefits. to use a household example if I'm stuck working on minimum wage is it more sensible for me to stick at it or borrow a few thousand at low rates do a plumbing course and triple my income,should I borrow to replace the dodgy boiler to half my outgoings?
The analogy is the same, investing in infrastructure can reduce costs and increase tax receipts. A social housing building programme will employ skilled workers,bring in rent tax receipts and reduce housing benefit payments. Investing in solar and wind power will keep Britain on the leading edge of technology help exports, create new jobs and apprenticeship and stop us being reliant on foreign oil.
The problem is austerity is sensible at an individual level but on national level is dangerous.

Maybe I'm being dense but...... if the social housing is funded by either National or local government (as it must be to be true social housing), then there will be no rent tax receipts, only income to recover outlay and as for a reduction in housing benefit, I can only ask where will all these people suddenly get income of more than £26,000 p.a. to be able to pay full rent and council tax on these properties and reduce their benefit levels?

Unemployed/unemployable in social housing will cost exactly the same as unemployed/unemployable in private rentals unless unreasonably low rent is charged on the social housing, which will leave more debt from the cost of construction to be paid for.


You are not being dense,I was trying to be too smart writing on the train at 6:40 before my first coffee kicked in.I forgot the comma should read rent,tax receipts.
The tax receipts coming from income tax and corporation tax of those building the houses.
The reduction in housing benefit comes from firstly not having to charge a market rate but as you say a rate that covers cost.
Secondly we pay out roughly £30billion a year in housing benefits much of this to private landlords. any sensible landlord would reinvest this into property. this increases demand and inflates the housing market further meaning more people have to rent for longer pushing up prices further. which of course means more spent on housing benefit and more profit for landlords.
Social housing doesn't need and shouldn't be just for unemployed or unemployable but for a range of people.
Sorry if there are any typos still on my phone

But unless you build a surplus of housing over need, then those most in need of affordable social housing will be the unemployed/unemployable (e.g. single parent families, large families and yes, asylum seekers) anyone else (except for specialized housing for, say, the disabled, the elderly etc) with a reasonable income will still be told to go rent in the private sector as they will be the ones able to afford this, leaving social housing for the those that cannot.

This would require a level of investment, land supply and building contractors willing to undertake this type of work (which they will still expect to make sufficient profit from) as to be virtually unattainable.

Locally (Somerset) two housing developments with 10% affordable/part buy homes have recently had builders going bust half way through development and any potential company looking to take over the development has immediately demanded a reduction/abolition in the affordable part before they would find it viable!

 


A stairway to Heaven and a Highway to Hell give some indication of expected traffic numbers

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View Mr_Gristle's Profile Mr_Gristle Flag In the land of Whelk Eaters 18 Dec 15 6.15pm Send a Private Message to Mr_Gristle Add Mr_Gristle as a friend

Quote Ketteridge

Secondly we pay out roughly £30billion a year in housing benefits much of this to private landlords. any sensible landlord would reinvest this into property. this increases demand and inflates the housing market further meaning more people have to rent for longer pushing up prices further. which of course means more spent on housing benefit and more profit for landlords.

Nail on head.

Government policies on tax breaks for landlords & interest rates and the banks' needs to maximise mortgage profits whilst their margins elsewhere are being squeezed by the same low interest rates have fed the Buy To Let monster. This monster is one of the big factors in the widening - arguably yawning - chasm between those feeling the negative impact of Austerity policies and those continuing to benefit from them.

Slaying the Buy To Let monster would be tantamount to election suicide for the Tories.

Ever increasing rents, ever reducing job security and cuts to the state benefits received by workers whose employers pay them a legal minimum wage that requires state subsidy to enable people to actually subsist on it. Food banks and slum landlords receiving taxpayers money to subsidise their expansion plans.

Austerity is definitely working for some.

 


Well I think Simon's head is large; always involved in espionage. (Name that tune)

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View dannyh's Profile dannyh Flag wherever I lay my hat....... 18 Dec 15 8.26pm Send a Private Message to dannyh Add dannyh as a friend

Quote -TUX- at 17 Dec 2015 8.39pm

Quote dannyh at 17 Dec 2015 8.15pm

Correct me if I'm wrong (and I'm sure all the finance ministers for Jermey Corbyn on here will do ) but if you are spending beyond your means that leads to debt, and more debt.

The only way out is to lessen your spending. Choices have to be made as to what your are going to save on.

Waitrose to Aldi, going out to staying in, Sky + HD to freeview, driving to public transport.Point is we've all had to make cuts when the times are tough, and this government I'm pleased to say, are making some good approaches to welfare regulation. You know they are on the right track when the great unwashed start marching on Number 10 amid a cloud of Lambert and Butler and weed, indignant to their very core that they may have to get a job if they wish to smoke a bar a week.

Someone somewhere is going to have to take a bite of the shyte sandwich, in fact we all are really, look at how many were made redundant in the HM Forces, Jesus the Army is that small now we could all fit in Wembley stadium, without needing the pitch !!! 25 thousand proud men and women made redundant, and yet the scroungers are moaning about a £25000 cap on handouts! excuse me but fcuk the fcuk off.

Social housing has always been an issue, always will be it's an expensive problem that has to wait in line just like the battered and nearly broken NHS.

The point has been made, and I agree entirely with it, that accepting a mass of immigrants is in no way going to help the problem, unless of course they are all gazzilionaire house builders,surgeons and nurses.

Cuts simply have to happen, it's never nice, but essential non the less.

Edited by dannyh (17 Dec 2015 8.19pm)

If austerity is working, how is it that the rich are getting richer? Where have they suffered in all of this? They haven't. The gap has expanded!

You're just like my dear old mum tbh, blaming all the countries problems on those who never started the bl--dy problem in the first place but put the onus upon them!
Kinda makes voting pointless?




Is that it, is that your entire counter argument ....if so it's to be blunt groundless and pathetic.

 


"It's not the bullet that's got my name on it that concerns me; it's all them other ones flyin' around marked 'To Whom It May Concern.'"

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View -TUX-'s Profile -TUX- Flag Alphabettispaghetti 18 Dec 15 8.42pm Send a Private Message to -TUX- Add -TUX- as a friend

Quote dannyh at 18 Dec 2015 8.26pm

Quote -TUX- at 17 Dec 2015 8.39pm

Quote dannyh at 17 Dec 2015 8.15pm

Correct me if I'm wrong (and I'm sure all the finance ministers for Jermey Corbyn on here will do ) but if you are spending beyond your means that leads to debt, and more debt.

The only way out is to lessen your spending. Choices have to be made as to what your are going to save on.

Waitrose to Aldi, going out to staying in, Sky + HD to freeview, driving to public transport.Point is we've all had to make cuts when the times are tough, and this government I'm pleased to say, are making some good approaches to welfare regulation. You know they are on the right track when the great unwashed start marching on Number 10 amid a cloud of Lambert and Butler and weed, indignant to their very core that they may have to get a job if they wish to smoke a bar a week.

Someone somewhere is going to have to take a bite of the shyte sandwich, in fact we all are really, look at how many were made redundant in the HM Forces, Jesus the Army is that small now we could all fit in Wembley stadium, without needing the pitch !!! 25 thousand proud men and women made redundant, and yet the scroungers are moaning about a £25000 cap on handouts! excuse me but fcuk the fcuk off.

Social housing has always been an issue, always will be it's an expensive problem that has to wait in line just like the battered and nearly broken NHS.

The point has been made, and I agree entirely with it, that accepting a mass of immigrants is in no way going to help the problem, unless of course they are all gazzilionaire house builders,surgeons and nurses.

Cuts simply have to happen, it's never nice, but essential non the less.

Edited by dannyh (17 Dec 2015 8.19pm)

If austerity is working, how is it that the rich are getting richer? Where have they suffered in all of this? They haven't. The gap has expanded!

You're just like my dear old mum tbh, blaming all the countries problems on those who never started the bl--dy problem in the first place but put the onus upon them!
Kinda makes voting pointless?




Is that it, is that your entire counter argument ....if so it's to be blunt groundless and pathetic.

Which sentence?


 


Time to move forward together.

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View Ketteridge's Profile Ketteridge Flag Brighton 19 Dec 15 8.41am Send a Private Message to Ketteridge Add Ketteridge as a friend

Quote becky at 18 Dec 2015 6.12pm

Quote Ketteridge at 18 Dec 2015 3.55pm

Quote becky at 18 Dec 2015 8.09am

Quote Ketteridge at 18 Dec 2015 7.01am

Quote Stirlingsays at 18 Dec 2015 1.57am

Quote reginald_maudling at 17 Dec 2015 11.01pm

hand bag economics

the national budget is not the same as a household budget

Mmmmm...In some ways it is, in some ways it isn't. It's still a budget. Interest on our debt is rising as it would be for anyone in debt who isn't on top of their payments and we have to pay as much on interest repayments as we do on the defence budget.

Sure capital can be raised but completely divorcing it from common sense with statements like yours is apart of the problem.


No it's not it is basic keynesian economics. It makes common sense as a narrative and ideal there shuld be no debt or deficit but since we hocked the nation's finance to bail out the banks we have a national debt and the debate needs to be how to deal with it.
My household budget is fixed,income and outgoings largely set. If there is too much month at the end of the money,as Mrs Ketteridge likes to say,then we stay in. we don't have access to a money printing machine to create new money. This was the problem for Greece it couldn't print money to help pay off debt as it could effect the euro and the value of Germany exports.
Secondly interest rates are at a historic low, it is the perfect time to borrow for sensible long term benefits. to use a household example if I'm stuck working on minimum wage is it more sensible for me to stick at it or borrow a few thousand at low rates do a plumbing course and triple my income,should I borrow to replace the dodgy boiler to half my outgoings?
The analogy is the same, investing in infrastructure can reduce costs and increase tax receipts. A social housing building programme will employ skilled workers,bring in rent tax receipts and reduce housing benefit payments. Investing in solar and wind power will keep Britain on the leading edge of technology help exports, create new jobs and apprenticeship and stop us being reliant on foreign oil.
The problem is austerity is sensible at an individual level but on national level is dangerous.

Maybe I'm being dense but...... if the social housing is funded by either National or local government (as it must be to be true social housing), then there will be no rent tax receipts, only income to recover outlay and as for a reduction in housing benefit, I can only ask where will all these people suddenly get income of more than £26,000 p.a. to be able to pay full rent and council tax on these properties and reduce their benefit levels?

Unemployed/unemployable in social housing will cost exactly the same as unemployed/unemployable in private rentals unless unreasonably low rent is charged on the social housing, which will leave more debt from the cost of construction to be paid for.


You are not being dense,I was trying to be too smart writing on the train at 6:40 before my first coffee kicked in.I forgot the comma should read rent,tax receipts.
The tax receipts coming from income tax and corporation tax of those building the houses.
The reduction in housing benefit comes from firstly not having to charge a market rate but as you say a rate that covers cost.
Secondly we pay out roughly £30billion a year in housing benefits much of this to private landlords. any sensible landlord would reinvest this into property. this increases demand and inflates the housing market further meaning more people have to rent for longer pushing up prices further. which of course means more spent on housing benefit and more profit for landlords.
Social housing doesn't need and shouldn't be just for unemployed or unemployable but for a range of people.
Sorry if there are any typos still on my phone

But unless you build a surplus of housing over need, then those most in need of affordable social housing will be the unemployed/unemployable (e.g. single parent families, large families and yes, asylum seekers) anyone else (except for specialized housing for, say, the disabled, the elderly etc) with a reasonable income will still be told to go rent in the private sector as they will be the ones able to afford this, leaving social housing for the those that cannot.

This would require a level of investment, land supply and building contractors willing to undertake this type of work (which they will still expect to make sufficient profit from) as to be virtually unattainable.

Locally (Somerset) two housing developments with 10% affordable/part buy homes have recently had builders going bust half way through development and any potential company looking to take over the development has immediately demanded a reduction/abolition in the affordable part before they would find it viable!


You don't need to build a surplus, there a currently still around 1.4 million council houses so already a reasonable stock to cover those most in need. Yep, you right from a sensible financial point of view and a moral point of view it makes sense to get those most in need in first which would have the effect of saving the most the most housing benefits.

Market based solution to fixing the housing market are not working. Housing benefit to help people afford housing is just inflating the market.Private rented properties have doubled in the last ten years, pushing up both rental and property prices. Land prices and house prices are still rising, again if I am large housing development company why rush to get you houses built, land is going up faster than houses so even if I just hold the land for a year or two I'll make a tidy profit on the resale with out any building being done.
Building companies need to make a profit they are not going to do it otherwise but cutting out the middleman developers and the land and property price speculation will save costs and meet demand.
The very fact that the construction industry is so sluggish in the UK while there is a great housing crisis is and indicator of how austerity is not working.

 


One supporter of hacking argued that without it "you will do away with the courage and pluck of the game, and I will be bound to bring over a lot of Frenchmen who would beat you with a week's practice -Blackheath secretary at first meeting of the F.A

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Hoof Hearted 19 Dec 15 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.

 

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nickgusset Flag Shizzlehurst 19 Dec 15 12.13pm

Quote Hoof Hearted at 19 Dec 2015 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.


Just to clarify, in hoof world, house prices are high because of our membership of the EU.
Can you give us your thinking behind this statement.

 

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View Stirlingsays's Profile Stirlingsays Flag 19 Dec 15 12.25pm Send a Private Message to Stirlingsays Holmesdale Online Elite Member Add Stirlingsays as a friend

Quote nickgusset at 19 Dec 2015 12.13pm

Quote Hoof Hearted at 19 Dec 2015 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.


Just to clarify, in hoof world, house prices are high because of our membership of the EU.
Can you give us your thinking behind this statement.

Didn't he explain in the post Nick?

Open borders to EU citizens allows massive incoming net immigration from poorer EU countries which far far outstrips house building rates.

That means demand outstrips supply, which equals higher prices.

The 'freedom of movement' aspect, which you and other lefties have and do support has ruined the life prospects of massive numbers of poor people while enriching the greedy landlords and multiple house owners.

Any answer which includes the idea, 'well they should build more houses' is a massive cop out because that policy is expensive and long term and is rarely undertaken as a priority by any government of any colour since the war.....Where massive house building was an obvious requirement.....Which was done with American aid money.

 


'Who are you and how did you get in here? I'm a locksmith. And, I'm a locksmith.' (Leslie Nielsen)

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Hoof Hearted 19 Dec 15 12.25pm

Quote nickgusset at 19 Dec 2015 12.13pm

Quote Hoof Hearted at 19 Dec 2015 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.


Just to clarify, in hoof world, house prices are high because of our membership of the EU.
Can you give us your thinking behind this statement.


Are you being thick or antagonistic today nick?

I gave you the reasons above FFS.

But just to clarify.....

House prices are high because of the basic laws of economics - the supply and demand ratio.

300,000 net migrants arriving per year and currently we are building less than half that amount and we already have a shortage. As members of the EU we have no way of stopping this influx under the current rules.

So... shortage creates demand = price increase!

I guess you must be an English teacher if you don't comprehend what I'm saying?

Anyways... I'm off to sit in front of my TV for an afternoon of sport!

 

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Hoof Hearted 19 Dec 15 12.28pm

Quote Stirlingsays at 19 Dec 2015 12.25pm

Quote nickgusset at 19 Dec 2015 12.13pm

Quote Hoof Hearted at 19 Dec 2015 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.


Just to clarify, in hoof world, house prices are high because of our membership of the EU.
Can you give us your thinking behind this statement.

Didn't he explain in the post Nick?

Open borders to EU citizens allows massive incoming net immigration from poorer EU countries which far far outstrips house building rates.

That means demand outstrips supply, which equals higher prices.

The 'freedom of movement' aspect, which you and other lefties have and do support has ruined the life prospects of massive numbers of poor people while enriching the greedy landlords and multiple house owners.

Any answer which includes the idea, 'well they should build more houses' is a massive cop out because that policy is expensive and long term and is rarely undertaken as a priority by any government of any colour since the war.....Where massive house building was an obvious requirement.....Which was done with American aid money.


Thanks Stirling..... but what I was saying was hardly rocket salad was it? LOL

 

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nickgusset Flag Shizzlehurst 19 Dec 15 1.01pm

Quote Hoof Hearted at 19 Dec 2015 12.28pm

Quote Stirlingsays at 19 Dec 2015 12.25pm

Quote nickgusset at 19 Dec 2015 12.13pm

Quote Hoof Hearted at 19 Dec 2015 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.


Just to clarify, in hoof world, house prices are high because of our membership of the EU.
Can you give us your thinking behind this statement.

Didn't he explain in the post Nick?

Open borders to EU citizens allows massive incoming net immigration from poorer EU countries which far far outstrips house building rates.

That means demand outstrips supply, which equals higher prices.

The 'freedom of movement' aspect, which you and other lefties have and do support has ruined the life prospects of massive numbers of poor people while enriching the greedy landlords and multiple house owners.

Any answer which includes the idea, 'well they should build more houses' is a massive cop out because that policy is expensive and long term and is rarely undertaken as a priority by any government of any colour since the war.....Where massive house building was an obvious requirement.....Which was done with American aid money.


Thanks Stirling..... but what I was saying was hardly rocket salad was it? LOL


Thanks for clearing it up. I didn't realise that it was so simple.
It's the foreigners fault.

 

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View Mr_Gristle's Profile Mr_Gristle Flag In the land of Whelk Eaters 19 Dec 15 8.36pm Send a Private Message to Mr_Gristle Add Mr_Gristle as a friend

Quote nickgusset at 19 Dec 2015 12.13pm

Quote Hoof Hearted at 19 Dec 2015 11.44am

This "Buy To Let Monster" you speak of........

It is fed mainly by the shortage of housing stock creating a huge demand and this has driven up house prices and shows no sign of stopping.

All the while we are members of the EU, we will always be short of housing stock and therefore house prices will continue to rise because the demand is there.

Sadly first time buyers will largely be unable to get on the ladder as prices spiral upwards and renting will be the norm.

Those of you thinking of voting to stay in the EU might want to reconsider this decision if you want this situation to change.

Whilst we have an open door policy, rich landlords will get even richer and the younger generation will be priced out of the market.


Just to clarify, in hoof world, house prices are high because of our membership of the EU.
Can you give us your thinking behind this statement.

Hoof and I may appear to be on opposite sides of the spectrum, but he's not wrong to say that something which increases the net population increases the demand for housing. He's only wrong if he thinks EU freedom of movement is the only or primary reason.

The "Open Door" policy is part and parcel of EU membership and I for one won't vote against it. Still, all those people legally coming to the UK to work have to live somewhere. I doubt they're earning enough to buy anywhere outright in the South East.

You'd think governments would be able to measure the population increase, plan sufficient house building and invest in non high speed rail infrastructure accordingly........


Edited by Mr_Gristle (19 Dec 2015 8.39pm)

 


Well I think Simon's head is large; always involved in espionage. (Name that tune)

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