Should Governments be buying houses?

[Ramthorne]

Just a thought..... rather than the US and UK Governments throwing money at the Banks, why not buy the houses that are being repossessed, for social housing and long term investment?

The Banks get some of their toxic loans repaid, builders get work doing them up, pen pushers get work, poor people get houses and the housing market stabilises.

[sleep envy]

you can see the headlines - next door is a council house, I want compo...

[HiRich]

It is a very good idea that has already been suggested, and some councils are hoping it forms part of Gordon Brown's council house building policy (haven't heard any more about that, have we?).
Also:

• Rapid effect, as there are no significant planning permission delays.
• All those skilled builders are free and desparate for work. They could be on site in a month, and working on very tight margins. Fast and good value.
• Fits the green policy as decrepit properties can be upgraded to the highest environmental standard possible.

Problems:

• I believe VAT is still chargeable on renovations, not no new build. On larger developments, it would be more profitable to knock down and start again.
• Councils would still need to secure funding from banks who are still unwilling to lend. Although this is probably irrelevant as...
• Your idea does not allow for the continuing folly of PFI. GB would still require private firms to "assume the risk" (underwritten by the tax payer, at a higher rate of interest than if it was public borrowing). Those PFI contractors would have even less chance of securing funding, being higher risk than the councils. And the tendering process would add 12 months to the build programme.

[Pork]

Probably an election winner.

"we let them over-inflate, so we'll keep them there. Enjoy the TT/Boxster/Conservatory/flash holiday/Plasma we bought for you"

[Ramthorne]

As a taxpayer I would rather have a partially nationalised housing stock than partially nationalised Banks.

Also, wouldn't it be nice if the current situation saw PFI's quietly disappear.

[Maxf]

Sounds great until the nice 5 bed house next door to the pile you paid £600k for gets given to Mr and Mrs Caunsel and their 8 children for £55 a week.