John Redwood

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New blogsite

Writing on his new internet blogsite today, John Redwood has spoken out in favour of plans to make it easier for tenants in council or housing association accommodation to buy a share of their home, and has set out his arguments why increasing home ownership is one of the best ways to reduce poverty amongst the elderly.

The article, which can be found at www.johnredwoodsdiary.com, is reproduced below:

Government 1, Shelter 0

One cheer for the government this morning. They say they want to make it easier for tenants in Council or Housing Association properties the chance to buy a share of their home.

The big divide in the UK today is between the majority of us, who own part or all of our home, and the minority who have to pay rent and have no assets. House ownership has been the main route for the many to own some assets and to see their wealth grow.

I want to live in a Britain where more people own assets and have the extra choices that can bring. I just hope the govrnment means this, and really does make it easier for people to buy a stake in their rented property.

Shelter are wrong to say this will not help our society. They are wrong to say this will reduce the supply of rented accommodation for those on lower incomes. If someone buys a stake in the property they rent, they carry on living there. It makes no difference to the supply or demand for accommodation, but it does make a huge difference to the family concerned, who get their feet on the housing ladder.

It could increase the supply of accommodation, if the government/Housing Associations used the receipts they get for  the sale or partial sale of the property to build more homes. These new homes should also be built with a view to tenants buying all or part of them.

Why do critics of home sales want to keep so many people in poverty, by not letting them join in the upward movement of the housing market? And why do they want them to be bossed about by landlords, instead of them being able to enjoy the freedom to improve and maintain their own home in the way they see fit? Renting all your life is the best way devised to keep you poor. Rents keep going up, and will be at their highest when your income is at its lowest- in old age. If you have bought your home you are spared the rent in retirement. The only pity is some avaricious Councils come along and whack you for being prudent with their Council taxes!