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Original poster

IMAGINE a mortgage free Britain

231 replies

HarrowToCroydon · 02/08/2023 13:06

For a moment, imagine if everyone in Britain lived in Government Housing. Everyone paid minimal rent, the cost to Government was 0 as the rent would cover upkeep and new buildings.

And society was secure in the knowledge that their children too will be housed.

How would you then spend your money which you have saved from paying a mortgage.

Will you be having a lot less stress?

OP posts:
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6
Wiccan · 02/08/2023 13:52

rosetintedmemories2023 · 02/08/2023 13:47

even in london, the median house price is £533k. The threshold for a couple is £1 million, for a single is £500k. So yes in London, a divorcee woman owning a terraced house or a generous flat in a nice area would probably pay inheritance tax and that would feel unfair, but that is a very isolated case.

Most people would not pay inheritance tax and for couples, it would be relatively easy to mitigate it by downsizing.

Sorry to be pedantic but i hate people trotting this out (and voting tory because they promise to axe inheritance tax) when the vast majority of people wouldn't be affected. And the 'average' people in London who would be affected- so many of them are already downsizing to help their kids out so it wouldn't really apply anyway.

Show quote history

You really don't get this thread do you 🤣🤣

Mariposa26 · 02/08/2023 13:53

Overthebow · 02/08/2023 13:32

I think I prefer the current system where I get to work hard and save my money for the house I actually want to live in, I don’t want to be allocated a government house where I don’t get to choose.

This.

ohtobeme · 02/08/2023 13:55

Just making it possible - if you want a council home you can have it - would probably do a lot to control house prices - would be great

Meadowflower2023 · 02/08/2023 13:59

TrundleWheel76 · 02/08/2023 13:22

No thanks. As a childfree couple we would probably be allocated a small flat with no garden, instead of our lovely stone cottage with outbuildings and land.

This is exactly the same as what I was about to type.

mumda · 02/08/2023 13:59

Approximately 8.8 million (36%) were owned outright, with 6.8 million (28%) owned with a mortgage or a loan.

Returns from all registered providers of social housing show that the sector owns 4.4 million homes across England

There were just under 5 million privately rented dwellings in England in 2021
Aneisha Beveridge, head of research at Hamptons, said: “We know that nearly 70pc of landlords in England own a home with a mortgage.

25 million
Residential property – how many houses are there in the UK and how are they utilised? The number of dwellings in England grew from 21.2 million in 2001, to around 25 million by 2021
In 2021, 62.5% of the population owned their accommodation

Some quick google results for different numbers.

You've seen what a good job the government makes of running the country and think they should manage all the housing too?

How many houses are in the UK? The lack & space for housing

Housing is urgently needed. But how many houses are there in the UK, where do we lack and where do the opportunities lie?

https://www.mfsuk.com/blog/how-many-houses-in-the-uk/

rosetintedmemories2023 · 02/08/2023 14:01

Wiccan · 02/08/2023 13:52

You really don't get this thread do you 🤣🤣

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Well most people(homeowners) are expressing their disagreement with state housing, i was just sharing some information about other state housing systems that do work relatively well
I actually find the replies to this thread quite depressing. While I think that a state housing system should be alongside private housing (council housing with different tiers for different income groups), the fact remains that renters (insecure private renters mainly) now outnumber mortgagors and people who own outright. as a homeowner, i find this concerning and it would change society (and probably not for the better). We may be at the stage where 70% of average disposable income gets spent on rent and this would mean more poverty and less economic growth and less money for healthcare and schools.

As to how I would spend the money saved on housing, there is no real answer. If everyone was spending less on housing due to the government subsidy aspect, I expect prices for consumer goods and food would rise overall. There may be more new businesses as people have a sense of security. I suspect a lot of women would give up work (many mothers only work part time to pay for the 'luxuries' which may not be necessary with affordable rent and no big mortgage) so perhaps there may be less disposable income available.

andymary · 02/08/2023 14:07

Overthebow · 02/08/2023 13:32

I think I prefer the current system where I get to work hard and save my money for the house I actually want to live in, I don’t want to be allocated a government house where I don’t get to choose.

100% this.
Plus then if we wanted to, we can sell the house being as it's ours, and have the money, or sell it and have the money for retirement, or save it to pass onto any children to give them a better life.

inamarina · 02/08/2023 14:14

EmpressaurusOfCats · 02/08/2023 13:27

Would I get to keep my lovely spacious flat all to myself? Or would I be expected to share?

My family come from a country where large flats indeed had to be shared. I’d rather have a mortgage.

ActDottie · 02/08/2023 14:14

GenericUsername99 · 02/08/2023 13:20

I'd move somewhere where I could buy and own my own house!

This!

ginghamstarfish · 02/08/2023 14:16

So communism? That hasn't worked well elsewhere.

Wiccan · 02/08/2023 14:20

rosetintedmemories2023 · 02/08/2023 14:01

Well most people(homeowners) are expressing their disagreement with state housing, i was just sharing some information about other state housing systems that do work relatively well
I actually find the replies to this thread quite depressing. While I think that a state housing system should be alongside private housing (council housing with different tiers for different income groups), the fact remains that renters (insecure private renters mainly) now outnumber mortgagors and people who own outright. as a homeowner, i find this concerning and it would change society (and probably not for the better). We may be at the stage where 70% of average disposable income gets spent on rent and this would mean more poverty and less economic growth and less money for healthcare and schools.

As to how I would spend the money saved on housing, there is no real answer. If everyone was spending less on housing due to the government subsidy aspect, I expect prices for consumer goods and food would rise overall. There may be more new businesses as people have a sense of security. I suspect a lot of women would give up work (many mothers only work part time to pay for the 'luxuries' which may not be necessary with affordable rent and no big mortgage) so perhaps there may be less disposable income available.

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Stop spouting statistics at me !

OPs question was " what would you spend the money on by not having a mortgage "? 🤣😂🤣😂🤣

ErrolTheDragon · 02/08/2023 14:24

I'd rather imagine a system where everyone had a realistic option of decent 'government housing', but that people also had the freedom to choose what they spend their earnings on and so could rent or buy outside of that system if they choose.

Of course, localism can be good so rather than central government it'd be Council housing .....

Smellslikesummer · 02/08/2023 14:25

So we would be allocated a house in the same neighborhood we currently live in? If yes I guess it would be nice.
But then what happens when say the children move out, are we forced to downsize?
And what if people trash their house, who pays?

rosetintedmemories2023 · 02/08/2023 14:26

andymary · 02/08/2023 14:07

100% this.
Plus then if we wanted to, we can sell the house being as it's ours, and have the money, or sell it and have the money for retirement, or save it to pass onto any children to give them a better life.

Show quote history

You could also sell your house to fund private healthcare treatment because the NHS does not exist on account of struggling to attract staff who leave the profession because NHS pay does not cover the cost of rent. Then your children who were patiently waiting to inherit your house to buy their own wouldn't have it. The BBC featured a woman who did precisely that so it is already happening.

Lucky you for having a house. at least you get medical care then. Personally while we have private healthcare, i have already written off a big chunk of the value for my London flat as that will be the cost of medical bills and care costs for the two of us. Hopefully there would be something left. I almost think i would be better off if I didn't own (but had secure housing and the NHS survived).

gogomoto · 02/08/2023 14:29

Can't happen because people are greedy, people want choice and it would cost us money because we are mortgage free!

gogomoto · 02/08/2023 14:31

And what happens when you fancy moving somewhere else, I've lived in 5 areas as an adult, I love where I live next to the sea, I chose it because it's nice

HamBone · 02/08/2023 14:32

I think that longterm fixed rate mortgages would be a better idea. In some countries, you can lock in your interest rate for the full mortgage term if you wish to so people know exactly what they’ll be paying for the next 25-30 years.

You can still do shorter terms and refinance when rates are low.

Wiccan · 02/08/2023 14:33

Smellslikesummer · 02/08/2023 14:25

So we would be allocated a house in the same neighborhood we currently live in? If yes I guess it would be nice.
But then what happens when say the children move out, are we forced to downsize?
And what if people trash their house, who pays?

Yeah exactly people are not necessarily going to take care of their home . I think anyone without kids are going to end up 15 floors up in a high rise and what about disabled people ?.

lopsyl · 02/08/2023 14:34

Sounds an awful lot like living in pods and eating ze bugs.

I think I'd take that money and use it to move to a free country.

I haven't got a problem with mortgages. I think the issue with housing is that our population has shot up massively in the last few decades and we are a small country and haven't built enough houses. Some folks seem to think we should open our borders to everyone who wants to come here. Well, that'll be a bit a problem re housing, won't it?

MrsTerryPratchett · 02/08/2023 14:36

Needmorelego · 02/08/2023 13:17

Hmmmm…..isn’t that what places like North Korea are like?

More like Singapore actually.

Ponderingwindow · 02/08/2023 14:37

Is probably be saving my money to get out of the country. In government housing, I probably wouldn’t be allowed my big soaking bathtub that takes away my stress. I certainly wouldn’t be allocated space for my art.

yogasaurus · 02/08/2023 14:38

No thanks.

ImNotReallySpartacus · 02/08/2023 14:43

How would that work for those of us who have paid off our mortgage?

TrundleWheel76 · 02/08/2023 14:43

ImNotReallySpartacus · 02/08/2023 14:43

How would that work for those of us who have paid off our mortgage?

Or who never had one in the first place?

MrsTerryPratchett · 02/08/2023 14:44

If anyone is actually interested, read about Singapore's system. https://en.wikipedia.org/wiki/PublichousingginSingapore

Questions about trashing the place, upgrading, neighbours, moving etc. are all answered. Someone has been doing this successfully for decades so they've sorted out a lot of the issues. It's BOUGHT public housing not RENTED.

I know I'm supposed to say what I would do with he money <sigh> (travel) but I'm actually more interested in what people would do it they weren't homeless, trapped in poverty, living with mold and mice and overcrowding.