For Labour to have a fighting chance at the next election, radical demands surfaced at Manchester for significant policy change. Not just a crackdown on short-selling, but action against speculators in general. Not just providing local authorities with social grants to build 2,500 social housing units, but allowing them to borrow against their housing stock as collateral to launch a housebuilding programme for the 1.7m applicants on waiting lists.
Erm, borrowing money on the back of housing. Isn’t this the speculation that got us into this mess?
3 responses so far ↓
1 Mark Wadsworth // Sep 28, 2008 at 12:12 pm
He’s mental.
If there are indeed 1.7 million on waiting lists, what’s the point of building 2,500 new homes?
Although in principle I’m mildly against State provision of housing, he has missed the point that new social housing could be, from the point of view of the council, hugely profitable.
They can get the land more or less for free and grant themselves planning permission. They then stick up some flats at a build cost of £50,000 each. Let’s assume their interest costs are 5%, this means as long as they can get more than £50 a week per flat in rent on average*, they are well ahead of the game.
* i.e. by letting the flats to normal working people who can afford full market rents.
2 Natalie Solent // Sep 28, 2008 at 2:08 pm
The sad thing is that by Michael Meacher’s standards this proposal is a model of reason. Last time I looked he was some sort of Truther.
Here’s link debunking him.
3 chris strange // Sep 28, 2008 at 5:44 pm
I wonder who they are going to borrow the money from once they shut down the capital markets.
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