TAKING HOUSING OUT OF THE MARKET

Sarah Glynn

University of the West of Scotland and

Common Weal

Policy Aims:

• provide a decent affordable secure base for all

• contribute to a stable economy • increase equality (rather than

inequality as at present) • create attractive spaces• strengthen community • contribute to environmental

sustainability

restrict the use of housing as speculative investment

progressive decommodification of housing

an agenda for a better societythat stands on firm economic foundations

public investment in good affordable housing brings returns across the economy

• Major investment in public housing as a generally available tenure of choice

• Land Value Tax • Taxation of profits made through home

ownership• Reregulation of mortgages• Extension and normalisation of Mortgage to

Rent • Extension of empty homes legislation• Regulation and phasing out of private renting• Strong and democratic planning

If private owners were increasingly restricted from using their homes to make private profit, while tenants were given greater security of tenure and freedom to personalise their homes, and all homes were subject to socially-driven planning and regulation, then, in the long run, the differences between ownership and tenancy would tend to diminish.

publicly owned rented housing - eliminates speculation - affordable and secure tenancies

for all who want it

major investment in new and upgraded public housing

through local councils

end to Right to Buy

end to other social-housing privatisations

end to needless demolitions

big increase in the housing budget but:

Decent housing is a basic requirement of a well-functioning society.

The lack of decent affordable housing has financial as well as social costs, and the financial gains from the provision of better homes are huge.

The building, upgrading and maintenance of these homes would provide an economic stimulus and help counter the impact of the economic cycle.

rental income can pay for running costs, but building and upgrading need public investment  the financial rewards of public housing investment fall way beyond housing revenue accounts

raise money through public-sector borrowing (national and municipal) and progressive taxation

planning and management of public housing needs to be developed as part of a reappraisal of local democracy

• Democratically-elected council ownership for overall planning

• Locally-based management with active tenant involvement

• A strong independent tenants’ voice

freedom for tenants to make alterations

good available public housing would remove the imperative to get on the housing ladder to get a home

fiscal changes would restrict the use of homes for speculation

 • End subsidies for home ownership • Extend capital gains tax • Raise capital gains tax and

inheritance tax• Introduce Land Value Tax

mortgage regulation to prevent default and overheated market

house prices should be allowed to fall and to stabilise at a more realistic level

house prices in Germany since 1980 have remained relatively stable with an overall slow decline

what would happen if prices fell?

• People struggling to buy or rent - benefit

• Owner occupiers – paper value not relevant

• Trading up - benefit

• Trading down – lose potential profitbut can use Mortgage to Rent

• Speculators – main losers

Also need properly-funded policies on pensions and elderly care

Mortage to Rent - normalised

‘Right to Sell’ – Dorling 2014

strongtransparentdemocraticproactiveplanning

Decommodification of housing is not only key to the provision of good homes, it also forms a firm basis for a strong and more equal economy.

 

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