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Government Plans Could Cut A Third Or More Off Thousands Of House Prices

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Government plans could cut a third or more off thousands of house prices

http://blogs.telegraph.co.uk/finance/ianmcowie/100012144/government-plans-could-cut-a-third-or-more-off-thousands-of-house-prices/

Thousands of house prices could fall by a third or more if Coalition Government proposals to change planning rules in favour of developers become law, knocking hundreds of thousands of pounds off some of the most desirable homes in the green belt.

Many estate agents are reluctant to discuss this potential domestic disaster because they are linked to building and development companies who stand to gain if given a free hand to brick over the fields and meadows that make England such a green and pleasant land.

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There is no shortage. That's the point.

If there is no shortage, why are rents so high?

In the last decade or so, the population of the country has increased by nearly 3 million, so where have they all gone? We have certainly not built enough houses for them and there was not a huge oversupply before that.

More people are now crammed into smaller spaces - more staying with parents, sharing rooms or using the living room as a bedroom in rented accommodation. People buying now do without the spare bedroom they would once have wanted etc

There is a shortage of property

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If there is no shortage, why are rents so high?

In the last decade or so, the population of the country has increased by nearly 3 million, so where have they all gone? We have certainly not built enough houses for them and there was not a huge oversupply before that.

More people are now crammed into smaller spaces - more staying with parents, sharing rooms or using the living room as a bedroom in rented accommodation. People buying now do without the spare bedroom they would once have wanted etc

There is a shortage of property

and when you get one, there is a shortage of living space.

garages that wont fit a car in.

gardens that have no privacy.

200K three bedroom houses with a 10x20ft living area, including the dining table.

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The funny thing is how it's being presented as a bad thing. Bring it on I say.

How can I show support for this move?

This 'bricking over England's green and pleasant land' is only ever raised by people who believe they live in a this green and pleasant land themselves... and I wonder - why aren't they demolishing their own home and moving to the city so as to avoid their house being a blight on the landscape?

Another thing I fail to grasp, aesthetically, is that I don't find houses in the countryside to be a blot on the landscape... I like to see them... it's only cityscapes that are an eyesore - in my opinion... Maybe we should demolish those once the occupants have selected homes they prefer elsewhere?

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If there is no shortage, why are rents so high?

In the last decade or so, the population of the country has increased by nearly 3 million, so where have they all gone? We have certainly not built enough houses for them and there was not a huge oversupply before that.

More people are now crammed into smaller spaces - more staying with parents, sharing rooms or using the living room as a bedroom in rented accommodation. People buying now do without the spare bedroom they would once have wanted etc

There is a shortage of property

I love how when people recite the 'shortage of property' myth, they never both to check the supply side of the equation. So what, you don't think any homes have been built over this period to accomodate the extra population? You haven't noticed any newbuild estates popping up then?

Let me help you out - almost 2 million homes have been built over the period you quote. In 2001, the average household size was 2.3. That means sufficient homes have been built for 4.6 million people.

Now as you say, we now have more people sharing etc. so the chances are that figure of 2.3 to a household will have increased, which would increase the figure of 4.6 million.

You could argue that a higher proportion of flats have been built, but enough to account for the difference between3 and 4.6 million - really??

I you want to blame anyone, consider this: There are currently 1.3 million BTL mortgages - so basically, a large proprtion of the homes built over the last 10 years have gone into the hands of BTL. So the supply of owner-occupied homes hasn't increased enough to keep up with demand if anything.

BTW rents have increased by roughly the rate of inflation over the last 10 years, with some fluctuations recently (a couple of years ago they were relatively very low) due to things like LLs selling up and forced landlords. And even these inflationary increases would have been lower if it weren't for generous housing benefit allowances.

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If there is no shortage, why are rents so high?

Surely you have been on this site long enough to understand the impact of housing benefit on the housing market and rent.

A clear example where I live, we are renting for £435 from a friend (fair value around £650) next door identical house came up for rent after we moved in for £775 and was not even needed to be advertised and went to someone on housing benefit. His monthly family income was under £1000 from his employment.

Can you see how it works, just another part of the perfect set up created to goose the housing market into oblivion.

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and when you get one, there is a shortage of living space.

garages that wont fit a car in.

gardens that have no privacy.

200K three bedroom houses with a 10x20ft living area, including the dining table.

+1, so what is YOUR plan? Hope to find something that DOES have a lot of space? Move away?

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If there is no shortage, why are rents so high?

In the last decade or so, the population of the country has increased by nearly 3 million, so where have they all gone? We have certainly not built enough houses for them and there was not a huge oversupply before that.

More people are now crammed into smaller spaces - more staying with parents, sharing rooms or using the living room as a bedroom in rented accommodation. People buying now do without the spare bedroom they would once have wanted etc

There is a shortage of property

Paxman disagrees, he said there was a "surplus" the other night.The population increases will diminish as benefits and education places not to mention jobs are cut back, and as UK sheeple turn nasty (as they will) looking for scapegoats. My rent is 450 p.m, central Edinburgh, it has risen one hundred quid in THIRTEEN years ( and boom years at that). you can`t have everyone sharing/living at home/ crammed into cupboards and STILL have high rents, it doesn`t work like that.

Edited by dances with sheeple

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How can I show support for this move?

This 'bricking over England's green and pleasant land' is only ever raised by people who believe they live in a this green and pleasant land themselves... and I wonder - why aren't they demolishing their own home and moving to the city so as to avoid their house being a blight on the landscape?

Another thing I fail to grasp, aesthetically, is that I don't find houses in the countryside to be a blot on the landscape... I like to see them... it's only cityscapes that are an eyesore - in my opinion... Maybe we should demolish those once the occupants have selected homes they prefer elsewhere?

Yep, and that argument alone exposes them for the hypocritical, self-serving cu nts they are.

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If developers can`t sell existing "homes", why build more? I don`t understand. Where are all the homeless if there is truly a shortage?

There is the rub.

Where I live, a developer free-for-all stopped the moment the credit the propped up the ludicrous house prices dried up in 2008. There are plenty of outstanding permission and land banked with outline PP. There was a bias towards 'luxury' :lol: apartments and the BTL mania.

There are also hundreds of thousands of vacant property / property that could be renovated (Pathfinder in the North).

It is a complex issue but it clouded by government interference and dodgy dealings.

Developers aren't interested in building cheap homes, certainly when the government and the banks (huge VI) can be used to prop prices up.

Allowing more self-build might help. As would penalising the land-bankers to free up latent supply.

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I you want to blame anyone, consider this: There are currently 1.3 million BTL mortgages - so basically, a large proprtion of the homes built over the last 10 years have gone into the hands of BTL. So the supply of owner-occupied homes hasn't increased enough to keep up with demand if anything.

Totally agree with this. I'm not saying we don't need any new building to go on, but my concerns with this are:

1) The houses these developers build in the countryside will blight the landscape because they will be more of these awful tiny lego houses, and mostly completely unsuitable for a modern family.

2) It's highly likely that a large number of the houses that do get built will be bought by investors and rented out. Developers will often give discounts to investors and arguably prefer to sell BTL'ers as there's less risk, and indeed they're often the only people who can stump up the deposits needed these days. So what we'll end up with is lots of these new houses falling into the hands of the existing property owning population again (boomers et al).

In my opinion, building loads more houses in itself isn't the first step in this. Without making multiple home ownership a poor investment vehicle for amateur landlords through taxes and/or regulation, building more houses isn't going to help. The game of housing monopoly will just continue.

And once we've got that stage sorted out, what I'd personally like to see is more self-build going on. If regulation and taxes could favour those wanting to buy a bit of land and build a house to suit their own circumstances, we might actually see the quality of our housing stock become fit for purpose.

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The funny thing is how it's being presented as a bad thing. Bring it on I say.

The Torygraph is campaigning against planning changes. So as with other campaigning issues, any particular story about it may be truth, misrepresented truth, or outright fabrication. To be taken with a pinch of salt.

They presume most of their readership are homeowners, and the renters are probably broadly balanced by the rentiers, so their readership won't want price falls. Hence, price falls bad.

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+1, so what is YOUR plan? Hope to find something that DOES have a lot of space? Move away?

I rent.

There is planning for TWO 5 bedroom homes on the plot I live on...LL's son says he is going to get planning for FOUR five bed houses.

evil brat.

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If developers can`t sell existing "homes", why build more? I don`t understand. Where are all the homeless if there is truly a shortage?

Paying inflated rents? Living in less-than ideal houses with aspirations to do better?

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More people are now crammed into smaller spaces - more staying with parents, sharing rooms or using the living room as a bedroom in rented accommodation. People buying now do without the spare bedroom they would once have wanted etc

Smaller spaces than when?

People aspire to better things, but was there ever a time in history when the masses had more space per person in their homes than today?

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garages that wont fit a car in.

that would've fitted a family not so long ago.

gardens that have no privacy.

Gardens? GARDENS? Now we really are talking luxuries! My garden is called Dartmoor, and I'd much rather have it than some postage-stamp plot of lawn.

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Smaller spaces than when?

People aspire to better things, but was there ever a time in history when the masses had more space per person in their homes than today?

There are certainly locations in the present where the masses have more space. Pretty much every western nation outside the UK, for example.

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The No1. reason government likes these sorts of stories "out there" is to keep the sheeple beliving they bought a scarce asset :lol: the banks are in enough trouble without Mr and Mrs Thick saying "wait a minute, all this supply and demand stuff is crap, we`ve been conned dear! I`m not paying any more bankers rent"

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I can assure you that there are lots of empty houses in the country.....and over the years in and around London town many large Edwardian and Victorian houses have either been converted into flats or HMO or knocked down to the ground and a block of flats built in its place, the gardens turned into parking spaces.

In the country there is not enough living wage jobs to support the property prices... some own more than one and leave it empty most of the year, whilst working elsewhere to pay for it.....In London more people are being squeezed into smaller spaces.

I would say there is enough property but the prices are too high to buy for many, so because they can't be sold it is not cost effective for them to be built.... but others own more than one they live in. ;)

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  • 331 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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