Market Oracle: Conservatives bribe Labour voters – and private landlords

How can Conservatives propose to sell homes they do not own?

housing association header

In today’s Market Oracle, financial analyst and forecasts, an editor who forecasts a Conservative election victory summarises the proposal to extend the right to buy council house scheme.

His headline:Conservatives Bribe Labour Voters by Extending Right to Buy to Housing Association Tenants” doesn’t cover the whole story.

He reports that they ‘seek to force’ councils to sell the London properties estimated at £200k at the rate of about £15k per year and comments:

“Clearly both policies are aimed at attempting to bribe Labour leaning renters into becoming owner occupying Conservative voters as £77k to those outside London is a pretty big bribe! That and forcing the sale of the most valuable council houses is aimed at bolstering the vote in Conservative voting constituencies as that is where the most valuable council housing stock will tend to be situated”.

But how private landlords will rejoice!

As about 40% of the right to buy council homes are now owned by private landlords who then rent out these properties, at the end of the day they will gain as the supply of buy to let properties increases.

Market Oracle: “The cost of today’s voters housing market bribe will be at least £5 billion a year, and probably several billions more a year when the extra cost in housing benefit paid out in rent to private landlords has been factored into the equation”.

Will further pressure to divest be brought to bear on areas with a substantial proportion of local authority owned housing, including inner London boroughs Barnsley, Corby, Hull, Leeds, Manchester, Nottingham, Sheffield and Birmingham?

Meanwhile – if this policy comes into force – those waiting on housing lists are going to have even less choice – many will have no other option but private rental properties.


Posted on April 14, 2015, in Corporate political nexus, Democracy undermined, Economy, Government, Housing, Lobbying, Local government, Parliamentary failure, Planning, Taxpayers' money, Vested interests and tagged , , , . Bookmark the permalink. Leave a comment.

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