“Conservative thinkers popularised the idea that workers can be convinced not to join the revolution if they own a house with a nice garden”
In the decades that followed, successive governments enacted a series of major reforms in order to widen access to the benefits of homeownership. Taxes on land and property were removed, and subsidies for home ownership were introduced.
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If the ‘property owning democracy’ is failing, why are politicians still so committed to it? Part of the reason may stem from a widespread belief that high levels of homeownership are somehow related to economic success. However, examples such as Germany, Switzerland and Austria, which all have h...
Today the idea that increasing home ownership is desirable is almost universally accepted across the political spectrum. But this wasn’t always the case. As Sebastian Kohl, Senior Researcher at the Max Planck Institute for the Study of Societies, explained in the webinar, the idea that home owner...
“Conservative thinkers popularised the idea that workers can be convinced not to join the revolution if they own a house with a nice garden”, Kohl explained.
In the UK, the Conservative Party began to embrace...
This is because the wealth that is accumulated through the housing market is gained at the expense current and future generations who don’t own housing, who pay the price in the form of higher rents and higher rates of homelessness. Rising prices eventually choke off demand from first-time buyers...
In reality, the stubborn commitment to home ownership likely has more to do with politics than economics. In countries where the majority of the electorate are homeowners whose wealth is tied to house prices, there is a strong political incentive to keep stoking house price inflation. In addition...
The case for the ‘property owning democracy’ was always predicated on the assumption that the benefits of homeownership could be expanded to ever growing numbers of people. But as Brett Christophers, Professor in the Department of Social and Economic Geography at Uppsala University, highlighted i...
With the arrival of Margaret Thatcher, the state withdrew from house building, and councils were forced to sell their housing stock through ‘Right to Buy’ and prevented from building more. Rent controls were abolished and the private rental market was deregulated, fuelling a new ‘buy-to-let’ fren...
At the same time, the housing boom has been accompanied by soaring homelessness in almost every advanced economy. As Leilani Farha, Global Director of The Shift and the former UN Special Rapporteur on the Right to Housing, explained in the webinar, the rise in homelessness should not be viewed as...
Among the panellists participating in the webinar there was a strong consensus over the broad measures that need to be introduced to tackle the housing affordability crisis: tax land and property more effectively; regulate the private rented sector; restrict the flow of speculative funds into the...
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