Thread by @PositiveMoneyUK

⚡️ NEW ⚡️

We all know the UK housing system is broken and prices are too high. Which must mean there aren’t enough homes to go round, right?

Wrong. Here’s what’s really going on.

Share the video & read on (1/10). 👇

#HomesNotAssets

positivemoney.org/housing-report

2/ Today, you can earn more money by owning a house than by working.

That’s because for decades, policies by governments and central banks have turned our homes into vehicles for accumulating wealth, by making house prices go up much faster than wages.

3/ Over the last 50 years, housing policy has shifted dramatically.

We've seen tax cuts, the scrapping of rent controls, the sell-off of social housing through ‘Right to Buy’ & changes to housing benefits.

Property has been transformed into a more & more profitable investment.

4/ At the same time, our governments ripped up the red tape that limits how much banks can lend to people to buy houses.

That has meant much more money flowing into property, leading the wealthy to buy multiple homes and pushing prices up and up.

5/ What does this mean?

We all need a safe, warm and comfortable home to live a healthy and fulfilled life.

But the housing bubble has put safe, comfortable homes out of reach for a growing majority, especially young people, ethnic minority households & others on low incomes.

6/ In the 1990s it took the average young family in the UK 4 years to save for a deposit.

Today, it takes 22 years - 32 in London.

And Black & ethnic minority households in London have 6 times less household wealth than White British households.

7/ Banks and landlords gobble up more of people’s wages through rent and mortgage payments than ever before.

That means less money for essentials like food and heating, adding huge pressure to the #CostofLiving squeeze.

8/ The last few governments have tried to help more people onto the ‘housing ladder’ with schemes like ‘Help to Buy’ & expanding access to mortgages.

But these are sticking plaster solutions - and have actually fuelled demand and pushed up prices even more.

9/ In new @YouGov polling, we found:

🏠 62% think the purpose of housing should be 'mainly a home' rather than 'mainly a financial asset'

🏠 A majority (54%) of homeowners would be happy with their homes not increasing in value if it made housing more affordable for others

10/ We can get house prices under control. Here’s how:

💸Taxes on multiple property owners
🏠Renter protections & better alternatives to home ownership
🏦An updated mandate for the Bank of England to tackle rising house prices

Read more 👇
positivemoney.org/housing-report