One of the major issues in Cornwall is housing – the lack of it! That is affordable I mean! Someone winning millions on the lottery does not have a problem moving to Cornwall! Ordinary folk however have a huge problem finding a place to live. Wages for many are not high down here and affordable houses and flats (apartments) are few and far between. Recent legislative changes and interest rate rises have caused the supply of rented accommodation to decrease. Then of course there is the issue of “holiday homes”!
What we need in Cornwall are lots of affordable homes that people can either buy or rent.
The Tories are not going to embark on mass social housing programmes as we saw in the immediate post WW2 period. Nether is Sir Keir Starmer’s Labour Party.
So, how do we tackle this problem?
By Residential Letting Foundations (RLFs)!
I suggest that Residential Letting Foundations (RLFs) be set up by statute – part of a Finance Act at the time of the budget. These foundations would own residential property and let it on terms that are agreed with the local authority in which the houses are situated. The terms would be aimed at making the rent affordable with security to ensure that the tenants need not worry about the landlord evicting them for reasons other than non payment of rent, damage to the property or anti-social behaviour.
In return for accepting a lower than open market rent, agreeing not list the property on “Air B&B” and granting long term security of tenancy the person (and it has to be a natural person) is able to invest and gain an income free of all taxes.
By all taxes I mean all taxes! This includes Inheritance Tax and Capital Gains Tax! So, in addition to being able to keep the rental income free of income tax, the wealthy person would be able to invest large sums into a Residential Letting Foundation (RLF) confident that when they die they will be able to pass the assets onto their heirs without having to pay ANY IHT!
Now, I know that all good socialists will be rolling around foaming at the mouth after reading this! But after they’ve recovered and have swallowed their blood pressure pills maybe they will conclude that this is a practical way of providing a solution to the housing crisis?
Of course in addition to Residential Letting Foundations (RLFs) we need to increase the supply of new builds!
This is difficult as whenever a new property is proposed their will be locals who will object strenuously.
Were someone to propose that agricultural land be built upon then these local objections reach the level of hysteria!
Of course, we also have to deal with the Net Zero lunacy!
Affordable houses means houses built without ground source heat pumps!