Funding the Future The great British housing illusion
Oct 16, 2025
The discussion unveils Britain's housing market as a Ponzi scheme fueled by debt and speculation. Tax breaks and cheap credit convert homes into assets, exacerbating wealth inequality. Political choices safeguard homeowner wealth while trapping new buyers in a cycle of high costs. The consequences extend to delayed families and hindered entrepreneurship. A dwindling pool of buyers threatens market sustainability, prompting urgent calls for government intervention. Advocating for social housing and tenant protections highlights the need to prioritize community over profit.
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Housing As A Ponzi-Like System
- Richard Murphy argues the UK housing market functions like a Ponzi scheme built on illusion rather than value.
- He links this to tax breaks and cheap credit that turned homes into speculative assets, not shelters.
Tax Rules Fuel Unearned Wealth
- Murphy says tax exemptions on owner-occupied homes created perverse incentives to overinvest in housing as a wealth store.
- He calls the windfall gains of earlier buyers unearned and contrasts that with unaffordable entry for new generations.
Inequality Built Into Bricks
- He argues housing now rewards luck, age and inheritance rather than effort, embedding inequality in bricks and mortar.
- Governments protect homeowner wealth politically, favoring policies that sustain prices over fairness.