UK Tenants Pay Landlords 1/2 their Wages to Avoid Eviction
|January 6, 2014||Posted by Staff under High Cost of Land|
Renting – Britain’s social scandal that is being ignored
This 2014 excerpt of The Guardian, Jan 3, is by Patrick Collinson.
Young adults and families are being painfully stretched by private landlords, who are now often pocketing half or more of their tenants’ wages with threats of eviction if they don’t cough up another inflation-busting rent rise in the year ahead.
How many MPs have rented their family home all their lives from a private landlord? I’d wager almost none. How many heads of our banks and building societies would prefer to live under a six-month assured shorthold tenancy rather than own (and control) their home? None. There is a vast gulf between the experience of policymakers, many of them baby boomers who have benefited from property price rises, and what is happening to the generation following behind.
Tories, who tend to receive rather than pay rent, go apoplectic at the merest suggestion of rent control, but should heed Ed Miliband’s focus on the cost of living crisis. A cap on rent (let’s call it “stabilisation”) may be no less electorally successful than the proposed cap on energy bills, such is the level of despair so many UK tenants — young people and families are feeling.
Ed. Notes: Rent control appeals to political people, which most of us are, but economic people know something better: It’s not actually the building that becomes too spendy but the location, whose value is generated by the presence of the populace; so share the rental value of land. As locations rise in value, so would one’s share. No matter how high sites go, residents could always afford to live where they love.
And love where they live if the government shifts the property tax off the building (onto the parcel). Then owners could give structures loving, tender care without swelling their tax bill, as now would happen (their property assessment would rise).
Plus, the land charge would spur speculators to build on their under-used lots or sell to builders, which would increase the housing stock, and lower the housing cost. This is what’s happened wherever geonomic solutions have been utilized. See how much better big-picture solutions work?