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Radical New Approach Needed Towards Housing

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http://news.ulster.ac.uk/releases/2011/5649.html

Note that this was said today not in 2006/7

“We need to look at the role of the tax system and its interface with housing as an asset class; we need action to make land more easily available for affordable and market homes; we need to realign our government accounting rules so we can use billions of pounds of existing assets to lever in even more private finance; we need to tackle abandoned communities and unemployment; we need to stop wasting precious NHS resources as a result of unhealthy and unsafe homes; we need to balance FSA regulatory protection with the need for an affordable mortgage market; we need to provide a wider range of sub-market rents and fixed-term lets as part of a progressive and forward looking approach to meeting a wide range of housing need, not just as a tool to build more housing.”

I take all this Housing Market talk witha pinch of salt as I am a dyed in the wool free marketeer when it comes to housing. Anything that makes housing more afordable to buy puts the price up.

Anything that supports the Public Rented Sector cuts the ankles away from the Private Rented Sector. What does he mean "tax system and its interface with housing as an asset class"? Higher taxes on main residences? Protection of Capital appreciation is something of a Sacred Cow. Does he want to slaughter that one?

Make land more easily available for affordable homes? Hmm. Lever more private finance into the system for what? Subsidised Public Housing? Tackling unemployment etc, good stuff but getting off topic. Unhealthy homes? That is really a social deprivation issue, and a cultural one! Back to affordable mortgages? Yes things are too tight at the minute but history shows the tap will open again when the shocks in the capital markets subside. Sub-market rents? Pulease??

Rant over.

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“We need to look at the role of the tax system and its interface with housing as an asset class; we need action to make land more easily available for affordable and market homes; we need to realign our government accounting rules so we can use billions of pounds of existing assets to lever in even more private finance; we need to tackle abandoned communities and unemployment; we need to stop wasting precious NHS resources as a result of unhealthy and unsafe homes; we need to balance FSA regulatory protection with the need for an affordable mortgage market; we need to provide a wider range of sub-market rents and fixed-term lets as part of a progressive and forward looking approach to meeting a wide range of housing need, not just as a tool to build more housing.”

I take all this Housing Market talk witha pinch of salt as I am a dyed in the wool free marketeer when it comes to housing. Anything that makes housing more afordable to buy puts the price up.

Anything that supports the Public Rented Sector cuts the ankles away from the Private Rented Sector. What does he mean "tax system and its interface with housing as an asset class"? Higher taxes on main residences? Protection of Capital appreciation is something of a Sacred Cow. Does he want to slaughter that one?

Make land more easily available for affordable homes? Hmm. Lever more private finance into the system for what? Subsidised Public Housing? Tackling unemployment etc, good stuff but getting off topic. Unhealthy homes? That is really a social deprivation issue, and a cultural one! Back to affordable mortgages? Yes things are too tight at the minute but history shows the tap will open again when the shocks in the capital markets subside. Sub-market rents? Pulease??

Rant over.

Couldnt agree more, i wish they would stay the hell out of the way.

Constant tinkering with various schemes to "breathe life back into the market", all it does is distort and delay true recovery.

The artificial price floor in rental properties, is a prime example of this distortion.

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“We need to look at the role of the tax system and its interface with housing as an asset class; we need action to make land more easily available for affordable and market homes; we need to realign our government accounting rules so we can use billions of pounds of existing assets to lever in even more private finance; we need to tackle abandoned communities and unemployment; we need to stop wasting precious NHS resources as a result of unhealthy and unsafe homes; we need to balance FSA regulatory protection with the need for an affordable mortgage market; we need to provide a wider range of sub-market rents and fixed-term lets as part of a progressive and forward looking approach to meeting a wide range of housing need, not just as a tool to build more housing.”

I take all this Housing Market talk witha pinch of salt as I am a dyed in the wool free marketeer when it comes to housing. Anything that makes housing more afordable to buy puts the price up.

Anything that supports the Public Rented Sector cuts the ankles away from the Private Rented Sector. What does he mean "tax system and its interface with housing as an asset class"? Higher taxes on main residences? Protection of Capital appreciation is something of a Sacred Cow. Does he want to slaughter that one?

Make land more easily available for affordable homes? Hmm. Lever more private finance into the system for what? Subsidised Public Housing? Tackling unemployment etc, good stuff but getting off topic. Unhealthy homes? That is really a social deprivation issue, and a cultural one! Back to affordable mortgages? Yes things are too tight at the minute but history shows the tap will open again when the shocks in the capital markets subside. Sub-market rents? Pulease??

Rant over.

The problem is the land market isn't free, its controlled by planning who are basically corrupt..or trying to manage an unmanageable system. Planned land has a huge value because it is so rare. But the problem is more fundamental, we can't keep increasing the population and expect to keep the same population density, keeping green belt free of housing.

I do agree tax breaks or assistance for buyers just puts prices up, devaluing the overall economy as more money is diverted to unproductive areas.

The only rear solution is a land tax so that we make the best use of land and a new financial system that doesn't require exponential population rises to keep the pyramid alive... Sustainability... but its too big a concept for politicians to grasp until we reach break point.

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Hmm.

The land market is not controlled by Planning. The supply of land onto the the market is influenced by the Planning system. I am no great fan of the system but would stop a long way short of labelling it corrupt. There may be noises of discontent regarding the lobbyiing of and the influence exerted by our politicians but the notion that our officials may be corrupt is a new one on me. Perhaps you are referring to the systen as such but such language I do not think is justifiable.

As regards manageability I would veer toward your sentiments there. It is a difficult situation to manage.

There most be some control put on the ability to develop otherwise all sorts of horible things will be built God knows where.

To jump to the only real solution being a land Tax is unacceptable to me. Another tax designed to influence the market or skim money off a sector perceived to be flush with it. Either way is flawed to me.

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The land market is not controlled by Planning.

To jump to the only real solution being a land Tax is unacceptable to me. Another tax designed to influence the market or skim money off a sector perceived to be flush with it. Either way is flawed to me.

The 'land market' may not, but I suppose I was really talking about the land for housing market, which is entirely influenced by planning. For example developers will mostly go for land that planning are likely to approve for building. They will more likely approve density increases rather than release green belt for example, unless they 'zone' land for building.

How else do you suppose we ration land and make the best use of it in a capitalist society, does it belong to those who 'own it', is it fair that those who own have by in large benefited from historical ownership 'clarified' in the doomsday book and will continue to own it without putting it to any good use.

It does not matter how flush a market is or not, what matters are the incentives and business model. Those things decide if the market takes away or contributes to the economy. Everything has these, whether it be regulation, tax breaks or extra taxes or just normal tax. The market and those active in it have to adjust to 'changes'. The housing land market has been shown to be completely unsustainable with the current model, thus changes are needed, but not necessarily the ones proposed by politicians.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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