Council housing is not subsidised, it pays for itself over 25 to 30 years, and thereafter makes a profit for the council. House owners still enjoy capital gains tax relief, currently worth almost £6bn. Those with no or only small mortgages also benefit from not being taxed on the value of their home. This tax relief is now valued at over £11bn. Pooling these benefits and adding back in the stamp duty and inheritance tax of approximately £5bn that owners do pay, the net subsidy received is still a surprising £12bn per year.Owners in difficulty also receive support with mortgage payments. All governments have provided subsidy to shared ownership, as a first step on the ladder, and about 170,000 homes have been built on this basis alone. The biggest subsidy of all (for the individual households who have benefitted) has been the right-to-buy, offering 2m buyers a typical discount of £26,000. The UK Housing Review gives the total value of these subsidies as £1.6bn for the year 2009/10 – and in the recent past they have been even higher.Owners in difficulty also receive support with mortgage payments. All governments have provided subsidy to shared ownership, as a first step on the ladder, and about 170,000 homes have been built on this basis alone. The biggest subsidy of all (for the individual households who have benefitted) has been the right-to-buy, offering 2m buyers a typical discount of £26,000. The UK Housing Review gives the total value of these subsidies as £1.6bn for the year 2009/10 – and in the recent past they have been even higher.
Libby Kemp ● 2928d