Friday, December 7, 2018

It's Deja Vu All Over Again

Here's another timely reminder, this time from Gooner, that one generation of Labour dickheads learns nothing from the previous generation of Labour dickheads.

Saturday, April 12, 2008

Labour's affordable housing

Obviously Labour's focus groups and internal polling is showing that affordable housing is a major issue the electorate is concerned about. Labour wouldn't give a shit otherwise. So the comments and proposals coming out this year on the issue will be very interesting.

Maryan Street, who Paul Henry made a complete prat of the other night on Close Up, has let slip a few sweeteners:
Ms Street said a shared equity scheme could see the Government provide Crown or Housing Corporation land, with the buyer paying only for the house.
Later she said the idea was "what we are looking at for the shared equity proposal, it hasn't been fully announced yet".
If that option was chosen, contracts would include clauses to prevent house owners moving their homes on to other land.
Whatever type of government shared equity scheme people signed up to would mean they agreed to limited capital gain, possibly set at about 20 per cent.
"We can't have affordable houses being built this year and in two years time they're sold on and they become unaffordable, so we are in this for the long haul."
So the government would own the land but the punter would own the house but can't move it and can't prosper from capital gain if said punter owns it for, say, more than 7 years. It's sounding like a ground lease to me. Leasehold properties are looked at as affordable entry into housing but come with inherent dangers as many are finding around Beaumont Quarter at the moment.

Or I suppose it could be that the Crown would allow a freehold sale to take place with a caveat on the title protecting the Crown's interest under its shared equity agreement. Either or, the 20% cap on capital gain is odd. If the purchaser stays in the property for 20 years then that's 1% per year, not even inflation. That sounds like unaffordable housing in 20 years time to me.

I am going to watch this policy area with interest. I can almost guarantee now there are going to be chasms a mile wide for punters to either fall into, or exploit. The budget should tell us more.

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