Tuesday, 10 November 2015

In which we're told £40,000 is poverty wages



Take the new legislation in which any person in social housing earning over £40,000 in London and £30,000 outside of London will be made to pay the current market rent. To bring in such a law in London will be crippling to many families and assist the mass exodus of middle and working class families from the city – ethnic, social and class cleansing.

London's median household income in 2013 was £39,100 - I'm guessing it might have risen a little since then to say £40,000. So according to this writer half of London households are struggling in abject poverty. Now, I know London's got high rents but the economy of the city would be collapsing if this argument was at all accurate.

The answer isn't to subsidise rents, of course, but to build more homes.

1 comment:

Will Robinson said...

Is there an argument that free markets in house building cause shortages? If supply is kept low, demand is inflated, keeping prices up.

Let's say we let the floodgates open on housebuilding, is there a negative effect on the economy by driving house prices down, increasing negative equity and possibly causing another trench of defaulted mortgages and leaving banks in trouble?

I'm not presenting either of the above points as fact, just interested in people's thoughts on them.