As the Guardian reports this morning:
When all that's left is the rentier economy — and in households that rent, that is the only interest they are really working for — something has to give.
This is completely unsustainable.
Radical thinking is required. Steve Keen is doing some. So am I.
We might need to talk about it.
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Here is one potential outcome
https://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014/
What an absolutely brilliant article. Thanks
Steve Keen posted a video on X this morning that outlines his proposal, which of course all the major political Parties will never adopt unfortunately. As you say, Richard with soaring house prices and rental costs, something is gonna give at some point, and it aint going to be nice!
See a post I have just made.
There will be another to come.
Agreed.
Someone is going to have to take a hit somewhere for sure. And some in Europe like the British model too. I think it is the same in Ireland. No wonder people are pissed off.
It is obvious that housing has lost its use value and its financial value is all that matters. The pricing of housing is just now like most consumables – the present price is being used to bring forward future profits. I can imagine a developer working out a yield value for mortgage backed securities on a batch of their new homes and adding some of that future value to the prices they are charging. Just to get their nose in the trough.
Whatever we do, someone will cry foul somewhere and will need a huge wodge of government money to shut them up. The government has lost control of a fundamental good. It’s shameful.
In Ireland it might be even worse
Scary times for anyone who is a renter in Britain today.
It looks to me as if renters are the sacrificial lamb of neoliberalism. Some of the numbers smack of pure greed. The Guardian also report that the Treasury are considering taxing rent to raise about £2 billion from landlords. Where’s the protection for tenants that this will not be passed on to them in increased rents? It doesn’t exist. If it happens, I guarantee it will be passed on to tenants.
Here is the reason.
Labour have the Renters Reform Act, but in many ways, that legitimizes current market rents. It’s landlords and estate agents that determine the market rent. Tenants have no power there at all. Do Labour not understand that affordability is the problem? Labour have no policy on controlling rents, or addressing the affordability issue.
That 44% figure. Let’s not forget that tenants are also expected to pay the council tax, water rates, and gas and electricity standing charges (I’ll leave aside the little matter of turning on the heating, etc. Many cannot afford it any more). That probably bumps it up to 60% at least. So, assuming the “average” is before tax and NI is taken away, an increasing number of renters are on the breadline. Then the streets.
And what about those on fixed incomes, benefits, state pension? Basically screwed.
How many years are renters going to be expected to rob Peter to pay Paul, then rob both Peter and Paul. And eventually, every penny goes to the landlord, the council tax, the privatised water and energy companies.
Does Labour care or even acknowledge it? If they did, rent controls would be a priority. So, Labour, say goodbye to the tenant’s vote, and the landlords will probably be voting for Reform.
Much to agree with
Richard,
Sent this to my MP to address housing amongst other issues
Subject: Supporting Public Banking in the UK
I am writing to highlight the potential benefits of a UK public bank, informed by insights from leading Modern Monetary Theory (MMT) economists:
• Bill Mitchell emphasizes that public banks can finance public investment and reduce reliance on private financial institutions, supporting economic stability.
• L. Randall Wray highlights that government-owned financial institutions are crucial for implementing policies like full employment and public infrastructure development.
• Richard Murphy argues that public banks can provide sustainable financing for green projects and community development without depending on profit-driven private banks.
A public bank in the UK could:
1. Offer lower borrowing costs for individuals, businesses, and local projects.
2. Fund community-focused and green initiatives while reinvesting profits into the public sector.
3. Strengthen regional economies and ensure financial resources serve public needs.
Given these benefits, I urge you to support initiatives exploring the creation of a public bank in the UK.
Thank you for your attention to this important issue. I would welcome your response on your position regarding public banking.
Thanks
Yesterday I had a conversation about this very matter… One of the participants said to me – the answers to resolve these issues are obvious, why dont they do them, clearly not clever enough people in the role (starmer, reeves) I disagreed and said, I think tney know exactly what they are doing.
I have also tried to get across the household analogy lie in regards gov finances. They wont accept it, no matter how I illustrate it to them.
I wish there was a simple way to explain it.
Those with a plank in their eye will not remove it however hard you try.