In the past those who could afford to buy a house did and those who couldn't afford to buy a house got council housing, either way people had a secure home to live their life and raise a family. Now it is much more difficult for young people to access either of these options, instead they live in private rented, paying a fortune and with no security.
PWC said recently that in 10 years time 40% of households will be in private rented. What is going to happen when these people retire? In the past home owners will have paid off their mortgages and live off their pensions, no ongoing housing costs for the state to pick up. Council tenants would still have rent to pay in retirement so would receive HB to do so, this money would be going back into the pocket of the council, so effectively, no ongoing cost for the state to pick up. Private renters are imo unlikely to have pensions big enough to pay rent on a house so will receive HB, this will go to private LL at massive cost to the state.
I heard that the Gov plans to make public institutions sell of land for housebuilding to private companies. Why don't they just build the housing themselves and use it for social housing thereby dodging the bullet coming our way and helping out our young people now. Social housing used to be for everyone, now it seems it's just for those up shit creek.
I know, I know very little about economics, I don't pretend I do so please don't be rude about my lack of knowledge, just explain why building lots of social housing isn't the best plan. The only reason I can see for the Gov not building social housing is ideology, but I think pursuing that ideology is just to expensive in the long run.