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ElPapasito

House Of Lords Select Committee Inquiry Into The Economics Of The Uk Housing Market

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I think we need to make a collective submission and attach as many signatures as possible or is there mileage in making a formal 'housepricecrash' submission? I think the hpc name would detract from being taken seriously to be honest. http://www.parliamen...housing-market/ The attached PDF contains the questions to answer indicates the direction of travel being taken in the inquiry if you think about the questions they are NOT asking. EP

(Edited about date of submission)

Housing-Call-for-evidence-FINAL.pdf

Housing-Call-for-evidence-FINAL.pdf

Edited by ElPapasito

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Deadline is 17th December.

Please submit draft answers to the questions posed in the PDF attachment, i.e:

1 PRIVATE OWNERSHIP - increasing supply

1a Government Schemes

1b Taxation

1c Mortgages

1d Planning

2 PRIVATELY RENTED ACCOMMODATION - measures to increase the supply of low cost privately rented accommodation in UK

2a Reduction in tax relief to private landlords

2b Current trend in decline in home ownership and encouragement of stable long term rental culture

2c Restricting rent increases in private sector

3 SOCIAL HOUSING

3a Impact of RTB on HA tenants

3b Impact of changes to social housing rents announced in 2015 budget

If you post your answers against any of the above numbered sections (not just general discussion please) then I commit to collate contributions into a complete document.

Get drafting folks. YOU KNOW 118 WILL BE submitting on 2a. We need to be heard!

EP

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It should be submitted with the real names of whomever reads and approves of the final document we produce and no mention of HPC.

Sticky thread I reckon!

Things we should comment on but not listed in their brief include

* housing benefit: effect on rents and house prices (is this under control now with the 30th percentile calculations?), wealth transfer from tax payer to potentially useless private landlords

* is private ownership the holy grail? What about improving the rental sector: long-term lets of unfurnished accomm. suitable for families (moving costs are probably greater than landlord's void and redecoration costs)

Edited by Vested Disinterest

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For this "1a Government Schemes planning"

I would say

any office/shop that cannot be rented out automatically gets permission to become a house/flat

any land with permission to build loses it, if not used with 2 years

all new build homes should be at least 3 stories high unless there is a need for bungalows in that area.

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Compulsory purchase of land hoarded by builders. Compulsory purchase of empty inner city land in residential areas.

Such land to be for house building immediately.

Right now right away. It cannot be right for it to be hoarded under current circumstances.

Edited by billybong

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I would like any owner of land with permission to build to have to pay Council tax from the day that permission is granted (on the basis of what the tax would be once the properties are finished)

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I would like any owner of land with permission to build to have to pay Council tax from the day that permission is granted (on the basis of what the tax would be once the properties are finished)

I would second that

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I would like a ban on overseas property sales (like many countries have impemented)

Rationing of home ownership while their is a housing shortage (or rather, the government should stop spouting nonsence about lack of supply and yet do nothing to address how this supply is allocated)

Local authorities/housing association or any other public body that seeks and obtains planning permission on fresh land should pay the price for the land prior to permission being granted (they have this rule in Germany)

Create a national banding of Council Tax and pay according to this rather tha local bands

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I think a land tax in the order of £1000 an acre.However the owner can give the land to the government and rent it at £10 an acre. this would mean that the government would end up owning most of the land and can build what it wants.

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FYI: House of Commons - 02/11/2015

The second reading of the Housing and Planning Bill.

BBC IPlayer: http://www.bbc.co.uk/iplayer/episode/b06nzqwz/house-of-commons-02112015

Available for 27 days Duration 460mins :)

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Bump - a paragraph on each of these please...

1 PRIVATE OWNERSHIP - increasing supply

1a Government Schemes

1b Taxation

1c Mortgages

1d Planning

2 PRIVATELY RENTED ACCOMMODATION - measures to increase the supply of low cost privately rented accommodation in UK

2a Reduction in tax relief to private landlords

2b Current trend in decline in home ownership and encouragement of stable long term rental culture

2c Restricting rent increases in private sector

3 SOCIAL HOUSING

3a Impact of RTB on HA tenants

3b Impact of changes to social housing rents announced in 2015 budget

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For this "1a Government Schemes planning"

I would say

any office/shop that cannot be rented out automatically gets permission to become a house/flat - no, houses fetch more than commercial buildings, so that becomes a gravy-train for landlords to "fail" to rent it out and convert the thriving, as well as the genuinely empty.

any land with permission to build loses it, if not used with 2 years - no, just a land value tax that reflects the value of the permitted buildings.

all new build homes should be at least 3 stories high unless there is a need for bungalows in that area. needs to be flexibility. YOu could start with a presumption, but I expect the developers would do that anyway. So in reality that's red tape for nothing.

Compulsory purchase of land hoarded by builders. Compulsory purchase of empty inner city land in residential areas.

Such land to be for house building immediately.

Right now right away. It cannot be right for it to be hoarded under current circumstances.

Just tax it at a rate based on whatever planning permission there is. That's a proper disincentive to hoarding. Give them a quid-pro-quo elsewhere, such as for example tax relief on the cost of providing infrastructure.

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It should be submitted with the real names of whomever reads and approves of the final document we produce and no mention of HPC.

Sticky thread I reckon!

Things we should comment on but not listed in their brief include

* housing benefit: effect on rents and house prices (is this under control now with the 30th percentile calculations?), wealth transfer from tax payer to potentially useless private landlords

* is private ownership the holy grail? What about improving the rental sector: long-term lets of unfurnished accomm. suitable for families (moving costs are probably greater than landlord's void and redecoration costs)

private ownership IS the holy grail.

private ownership by as many people as possible.

what the rest of our illustrious corporate leaders, even bill gates etc, are now espousing, is private ownership by a tiny cabal who think they know better than the rest of us.

never,ever worked in history.

when crap hits fan, everything from marie antoinette to caeucescu comes home to roost on those who thought themselves better, and entitled to rule over the masses.

500+ years of recent history bears this out

sporadically nearly 5000 years of history also bears this out.

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Just tax it at a rate based on whatever planning permission there is. That's a proper disincentive to hoarding. Give them a quid-pro-quo elsewhere, such as for example tax relief on the cost of providing infrastructure.

said before..

all purchases listed with land registry

..council tax taken from land registry valuations with a multiplier.

1-10 properties= 100% ( or say 1% of total listed value)

10-25 properties= 125%

25-50 properties= 150%

50+ properties=200%

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According to the news on the radio today they're going to do away with several inner city prisons in order to build FTBer/starter homes and then going to build some new prisons - they claim they'll save millions a year.

So remove existing inner city prisons and build new ones on the green belt? - the economic craziness just goes on and on and on...

As someone commented it'll be luxury property marketed to rich overseas people in order to set local house prices at crazy levels.

At least it's all free money taxpayers' money.

Edited by billybong

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No council tax discount on 2nd homes. Bedroom tax should be extended to private houses and rolled into council tax, e.g council tax = standard rate * (rooms / occupants).

Obviously the greater of the 2 so you don't get a discount by cramming occupants in, I.e (rooms / occupants) cannot =< 1, or maybe 0.5

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Also, ex council houses with a preservation of right to buy covenant on them should be sold in favour of owner occupiers.

I say this purely because I recently lost a sealed bid to, I suspect, a developer on a property with such a covenant.

In my opinion, if ex council houses are sold on the open market because there is no tenant who can exercise their right to buy, then the sale should be in favour of somebody intending to make it their home.

I'd be happy if it just became a convenant to say the house cannot be sold again within 5 years, or maybe preferably it cannot be sold at a profit beyond wage inflation.

These were our, as a collective, houses originally afterall. Happy for them to fall into private (non lha) hands, not happy for the purchasers to make a fortune selling them on.

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Just tax it at a rate based on whatever planning permission there is. That's a proper disincentive to hoarding. Give them a quid-pro-quo elsewhere, such as for example tax relief on the cost of providing infrastructure.

It could be a disincentive to hoarding depending how fast residential land is increasing in "value" and depending on the level of tax.

If residential land is worth say £50,000 per new housing unit and land value is increasing at the rate of the inflation (say 2%) and it's being taxed at say the council tax rate for a housing unit then it's a real disincentive (unless a government is in hock to them and is promising to relax the tax if they're elected).

If the land value of a housing unit is increasing at say 20% a year and the tax is at the council tax rate of a housing unit then hoarding is still very profitable.

Compulsory purchase gets round all the shenanigans especially in circumstances such as London has experienced with crazy house prices - and it makes the land available to be built on immediately. Of course if the tax is ratcheted right up in accordance with the increase in value each year then the disincentive to hoarding increases. If they're taxed more than the increase in value they'd get rid of the hoarded land quicker than you can say Jack Robinson.

Edited by billybong

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For anyone interested in making submission to the inquiry just a heads up that recent DPS claims (HPC thread on them here) may feature in a few landlord submissions:

Eight out of ten renters want tenancies of a year or less

Eight out of ten of those renting accommodation want tenancy agreements of one year or less, a large survey by The Deposit Protection Service (The DPS) has suggested.

39,855 tenants whose deposits are protected by The DPS’ responded to the survey, with 80.1% saying that they preferred agreements that lasted no longer than 12 months.

89.83% said that they preferred agreements that lasted up to two years, with 34.60% of the total saying they wanted contracts for six months or less.

Julian Foster, Managing Director at The DPS, said: “This comprehensive survey suggests that the idea that tenants crave longer tenancies is a myth...

Ros 10/11/2015 at 21:14

Thanks for this excellent article – which I am using for the basis of a submission to the Lords Committee on the Economics of the Housing Market. It would be interesting if we can find that they are looking at other ‘non-problems’ too! i.e. as I pointed on the other thread, they are trying to help their ‘target group’ by encouraging the development of something they don’t want – i.e. long-term rentals.

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