Quote:
Originally Posted by Chris
Prior to the 1980s it was not uncommon for councils to collect less in rent than it cost to maintain their housing stock. The maintenance costs were therefore subsidised by rate payments. There is an argument that this is fair enough, if well-off homeowners are subsidising the rent of those who need social housing because, for whatever reason, they can't afford to rent or buy commercially. However, when renting a council house was de rigeur for an entire swathe of the British working class population, thanks to the large number of council houses that existed, the existence of artificially low rents basically amounted to the large-scale subsidy of council tenants by private homeowners, regardless of whether there was a social need for it (often, there wasn't). Local councils were, in effect, involving themselves in the business of wealth redistribution rather than simply providing socially necessary local services.
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I remember going to one of the local council meetings in the early 1980's, the main topic of a heated discussion was the high levels of rent arrears. The highly subsidised council housing rent at that time made it far cheaper than having a mortgage. It always used to amaze me walking to school in my last year or so seeing council houses with nearly new BMW's etc parked outside, whilst my parents who had a mortgage couldn't afford such luxuries.