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Originally Posted by entwisi
It doesn't reduce the cosy of the house, only making it so that they can have part ownership in one. And who owns the other bits, Banks and the goverment. Who would benefit from house prices rising? Oh yep, Banks and the goverment. You also have to pay rental on the portion you don't own.
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I agree, there is a problem with doing it this way but this government is keen to see private sector solutions for always, supported by public money.
The case still stands as Chav said, this wont put pressure on house prices to fall, quite the opposite. Prices will only come down if supply is increased. The stock market becomes more confident and investing in business's is made more lucrative than property. That the increased supply of houses is fixed at a low cost [ie not for profit Housing Association houses at part rent part buy] to maximise pressure on speculators and the market. The rent bit is important because rents are calcualted over the lifetime of the property and therefore much much more affordable, are therefore fixed to the actual build cost and do not sufer from market fluctuations and speculation. ie rise exponentially