Sunday, 4 March 2018

HOUSES CHEAPER, BETTER, MORE. ANY WE ANY NEARER YET


SO FAR:

AS FAR AS CITIZENS (VOTERS) SEE IT

—We’ve got rid of a hated tax, Stamp Duty. Instead of the big one-off lump of Stamp Duty when a house is sold there will be a small annual Land Value Tax. This is politically canny, because it replaces a really bad tax. The replacement will feel less painful because of consumers’ short horizons. The annual series of payments feels much more manageable, and dosn’t have to be dealt with now.

—To make the new LVT even more palatable, there are refunds (Citizens Housing Allowances) payable depending on the number of people (citizens, residents) living in the house.  For the vast majority of families, especially outside London and the South East, there will be nothing to pay, maybe even a pay-out.

TECHNICALLY THIS IS WHAT HAS BEEN ACHIEVED

—Methods for valuing Land separate from ‘house price’ will have been established and written into case law.  The basis for Land Value Tax becomes soundly based.

—The Citizens Housing Allowance becomes the basis for Basic Income

—About 10% of the Land Value has been reclaimed through LVT. The age-old fully agreed Theory of Land Values says that the market price for the house — in reality the price of the house + land — will drop by this amount. Houses might be 1% cheaper in South Wales Valleys, but in London suburbs houses could be 8% cheaper to buy, a reduction of £50,000 per house.


So, houses a little bit cheaper in the areas of maximum housing stress.

But what about better houses? And more houses, houses in abundance?

It may take quite a bit more LVT to see any significant improvements on the better and more housing fronts.

But at least we’ve made a start on probably the only sure path to redeem the housing market and stop the on-going crisis.




Monday, 26 February 2018


  [Hint: Very few Owner-Occupiers] Using data from a range of sources, this paper makes estimates of the money flows associated with home-ownership in 2000. Of particular interest is the identification of 'winners' and 'losers' in the owner-occupied sector. The big winners are of course Financial Institutions, the Government and those involved in transactions -- solicitors etc. Very little of the money going in to the system reaches the producers of housing (builders), landowners. The most paltry sums reach those who inherit the accumulated wealth of housing, even fewer owner-occupiers make a financial gain in their lifetime. This is a paper I read in 2002. 

Thursday, 22 February 2018

WHY LVT WILL NOT HAPPEN — ACCORDING TO THE ECONOMIST

Here's the economic establishment scoffing at LVT. They have a point, but I hope I am showing how these problems can be overcome 

Wednesday, 14 February 2018

PEOPLE'S LAND TRUST--A BRILLIANT NEW IDEA FROM THE N.E.F.

How do you burst the housing market bubble in slow motion? One idea that might be worth exploring is a People’s Land Trust and Building Society[*] (PLT hereafter) – a publicly backed but independent non-profit institution which would buy land from underneath houses and lease it to members.

Monday, 12 February 2018


­­­­­WILL THIS TINY TAX OF ½% OF LAND VALUE REALLY GIVE US LOWER HOUSE PRICES? HOW?

 The whole point of going through all the political perils of dumping Stamp Duty and replacing it with a small LVT is to drive down House Prices.  So will a bit of  LVT do the trick, and if so How? 

Tuesday, 30 January 2018

Are you a victim[1] of a new-build leasehold? A digression


Just look at the howls of self-pity coming from house-buyers on discovering that their property is leasehold!

Saturday, 27 January 2018


TWO GOOD ARTICLES IN TODAY’S PAPERS (SAT 27 JAN, 2018)

  
Anne Pettifor, always a good read, explains as I have done, that
“Building more homes won’t solve the housing crisis”

And over in Ireland comes the explanation that too many people actually like rising house prices. There is a coalition of the greedy and the desperate who would be horrified if prices were to crash.

  

Friday, 19 January 2018

EXCESSIVE HOUSE PRICES—HOW THEY LET IT HAPPEN

[of course it’s the price of LAND that is boosting the price, so in this extract I’ve added LAND to housing]
Here are four ways the State reinforces the hyper-commodification of housing LAND to make the price of housing so expensive.
—First, the state deregulates mortgage lending, ends rent control, and privatizes public housing LAND in the U.S. and U.K.

—Second, the state allows financialization of housing LAND by the banks pooling mortgages and selling them as “liquid assets.”

—Third, the state allows globalization of housing LAND with foreign investors speculating in U.S. housing or buying luxury housing as an investment which were never meant to be lived in.

—Fourth, the state allows gentrification to increase landlords’ profits with huge rent increases.

https://www.counterpunch.org/2018/01/19/the-myths-of-housing-policy/
In a review of David Madden and Peter Marcuse’s thought-provoking book In Defense of Housing asks us to rethink the U.S. housing crisis.



Wednesday, 3 January 2018



THE FIX: GIVE EVERYONE £40 P.A. TO HELP PAY THE NEW LAND VALUE TAX

What’s wrong with abolishing Stamp Duty completely in one fell swoop, and replacing it with a simple mini-LVT based on the value of the plot your house stands on?