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Help to Buy is helping people get their foot on the housing ladder
People don’t really question the idea that home ownership is a good thing
It’s something that they’ve always been told and assume it must be true
The realisation of the American Dream, the envy of the entire world
I’ve been renting for the whole 20 years since I came to Switzerland
Diyana rents this apartment with her twin sons and her partner
We’ve been here for three years and it’s really home for us
…and the people who live here enjoy a very high quality of life
You would think that would mean that most people...
Far from it
A house in Switzerland is worth just 70% more today than it was in 1970
...are connected
In Britain, for example, just one-in-four families owned their own home
…then at least you’ve got some assets which you can sell
…and relief on capital-gains tax were put in place to promote home ownership
The big, massive global financial crisis of 10 years ago was a housing crisis
But the damage caused by encouraging people to buy their own houses…
The whole rich world today builds, like, half the houses…
…in the parts of the country where you’d most like it to increase
So if the economy is booming and supply cannot respond, it raises prices a lot
There is always this question of we’d like housing for young people…
…aren’t able to get the basics they need in life, such as a house
…it means that they struggle to get the jobs that they want
…have made it much harder for people like Tim to get on the housing ladder
We’re helping every American find their path to the American Dream
But, in fact, having more renters may not be such a bad thing
…and it comes 9th in the world on the UN’s Human Development Index
…to reduce the price because the reference interest rates were also reduced
In 2018 renters across most of the rich world did spend more…
But to see the full picture, we need to look at all the costs over a longer period
But if they decided to buy, their costs would include mortgage repayments…
And that depends quite a lot on the interest rate and the economy
But both the theory and the evidence suggests that renting…
While many have gained from increasing house values since the 70s…
And the net effect of the policy on home ownership is essentially zero
…and Britain has banned letting agents from charging renters’ fees
…and Britain has banned letting agents from charging renters’ fees
But that’s not enough