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TheCountOfNowhere

Radical Measures Are Needed If We Want To Make The Dream Of Owning A Home A Reality

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http://www.mirror.co.uk/news/uk-news/tories-price-people-out-property-7239205#ICID=sharebar_twitter

"As Tories price people out of property market, how can they be the party of aspiration?"

Dripping-Tap.jpg

"Bitter disappointment awaits the young and not so young striving to scrape together a deposit when the average required is now £57,000."

Most people I know can't scrape together £570.00

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http://www.mirror.co.uk/news/uk-news/tories-price-people-out-property-7239205#ICID=sharebar_twitter

"As Tories price people out of property market, how can they be the party of aspiration?"

Dripping-Tap.jpg

"Bitter disappointment awaits the young and not so young striving to scrape together a deposit when the average required is now £57,000."

Most people I know can't scrape together £570.00

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Very simple.

Repeal the T&CPA.

Allow people who want to build houses buy land from the landowner at a price agreed between the two parties. In addition, someone buying a poorly built, 1960s bungalow on a large plot can flatten it and build 2/3 houses on the land without being forced to jump through many hoops by an arbitrary and self-serving planning department.

There are some very major upsides to this:

1. We get a proper free market in housing.

2. We lose dependence on the big house building companies and their pisspoor product.

3. The money spent on a new house goes into the quality of design and fabric of the building, not into the land it sits on. Off course building land will fetch a premium to marginal agricultural land, but removing the artificial scarcity will reduce the multiple.

4. Small housebuilders, all but wiped out between 2008-12, will thrive again, having direct accountability to their customers and employing skilled trades rather than importing apathetic subbies.

There are some downsides:

1. Values of existing homes, especially poor quality ones, will fall. Sharply. This is a problem for anyone who borrowed hundreds of £1000.00s to buy it and in turn, for the bank who lent the money to buy it.

2. Politically, it could cause electoral wipe out or a couple of decades of landslide victories. All depends on getting the timing to chime with the voting demographics.

3. The banking system may become insolvent although many sage voices suggest that it already it. Let them go and start again.

Radical enough for you?

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99% of people under 35 are only buying houses with the direct and indirect help of BOMAD.

When the BOMAD lot finally relize the gains they made in housing will all have to be handed down to their kids and so they in essence gained nothing , then something might happen.

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Wow - are we now starting to have frank comment on our predicament from the MSM ? If it had pointed out the hypocrisy of then whining about housing benefit it'd be my news clipping of the year.

its questionable whether any government has the stomach to engineer a collapse in house prices to bring them within reach of workers on typical earnings.

Osborne appreciated the value to the Tories of appreciative smugs when he boasted before the election the boom was good for votes.

We cant just build our way out of this crisis and buyers trapped by negative equity would deserve help if prices are depressed.

Edited by pig

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.....stop BTL mortgages.

Let people buy as many BTLs as they want using their own money not IO debt money.

Make it easier for people to build their own homes to LIVE IN on land allocated for building.......High penalties for land hoarding that has planning permission to build that is not built on.

Look closely at why we are selling land and buildings to non residents for investment, tax and storage purposes.......

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Many solutions.

-Raise rates

-Force BTL off-plan

-Introduce LVT and lower income taxes

The problem is that now in our society income is taxed much more compared to wealth.

Some stupid people are buying flats outside London at price near 400K. It just does not make sense.

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Very simple.

Repeal the T&CPA.

Allow people who want to build houses buy land from the landowner at a price agreed between the two parties. In addition, someone buying a poorly built, 1960s bungalow on a large plot can flatten it and build 2/3 houses on the land without being forced to jump through many hoops by an arbitrary and self-serving planning department.

There are some very major upsides to this:

1. We get a proper free market in housing.

2. We lose dependence on the big house building companies and their pisspoor product.

3. The money spent on a new house goes into the quality of design and fabric of the building, not into the land it sits on. Off course building land will fetch a premium to marginal agricultural land, but removing the artificial scarcity will reduce the multiple.

4. Small housebuilders, all but wiped out between 2008-12, will thrive again, having direct accountability to their customers and employing skilled trades rather than importing apathetic subbies.

There are some downsides:

1. Values of existing homes, especially poor quality ones, will fall. Sharply. This is a problem for anyone who borrowed hundreds of £1000.00s to buy it and in turn, for the bank who lent the money to buy it.

2. Politically, it could cause electoral wipe out or a couple of decades of landslide victories. All depends on getting the timing to chime with the voting demographics.

3. The banking system may become insolvent although many sage voices suggest that it already it. Let them go and start again.

Radical enough for you?

+1

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Many solutions.

-Raise rates

-Force BTL off-plan

-Introduce LVT and lower income taxes

The problem is that now in our society income is taxed much more compared to wealth.

Some stupid people are buying flats outside London at price near 400K. It just does not make sense.

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Many things can be done. To start with:

1. Halve LHA - thus should bring BTL on it's knees.

2. Make it same across the country - this will get people moving out of London. Services will follow people.

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Very simple.

Repeal the T&CPA.

Something's been happening in the planning department.

Saturday I was talking to a friend who's father owns a small farm in Somerset. He was telling me that after 15 years they finally got outline planning for 20 to 30 houses on a piece of land that they had been trying to get permission on for 15 years!

"Joy for farmers" you'd think.. But No....

He was telling me that since "the changes ??" there is now a surplus of plots available and the plots are now only worth "20k/£30k each!

I haven't gone digging for evidence of this, but i'm fairly sure that this is near enough the truth. I feat that if there is further intervention in the mortgage market we could see an Irish style malinvestment building for investors boom.

Watch Carney and BOE closely, they make a lot of noise about BTL potentially being a problem but I think it's likely they will be doing exactly the opposite.

We need lots of house built __in the right places__ not in the field in the middle of nowhere, 3 miles from Glastonbury!

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Just to add, it looks like he was right!

http://www.rightmove.co.uk/commercial-property-for-sale/find.html?locationIdentifier=POSTCODE%5E858696&insId=1&displayPropertyType=land_development&oldDisplayPropertyType=land_development&radius=20.0&areaSizeUnit=acres

2 years ago in this search area there were about 6 plots available for about 150 houses, now there dozend of plots for hundreds of houses.

Anyone else seeing the same? Maybe worth a new thread?

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Just to add, it looks like he was right!

http://www.rightmove.co.uk/commercial-property-for-sale/find.html?locationIdentifier=POSTCODE%5E858696&insId=1&displayPropertyType=land_development&oldDisplayPropertyType=land_development&radius=20.0&areaSizeUnit=acres

2 years ago in this search area there were about 6 plots available for about 150 houses, now there dozend of plots for hundreds of houses.

Anyone else seeing the same? Maybe worth a new thread?

So they've granted so much planning permission that it no longer commands a big financial premium? Lmao!

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Doubt many would wish to live in an area with a high risk of flooding......I do notice many smaller houses built close together on estates, not on roads to somewhere.

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Something's been happening in the planning department.

Saturday I was talking to a friend who's father owns a small farm in Somerset. He was telling me that after 15 years they finally got outline planning for 20 to 30 houses on a piece of land that they had been trying to get permission on for 15 years!

"Joy for farmers" you'd think.. But No....

He was telling me that since "the changes ??" there is now a surplus of plots available and the plots are now only worth "20k/£30k each!

I haven't gone digging for evidence of this, but i'm fairly sure that this is near enough the truth. I feat that if there is further intervention in the mortgage market we could see an Irish style malinvestment building for investors boom.

Watch Carney and BOE closely, they make a lot of noise about BTL potentially being a problem but I think it's likely they will be doing exactly the opposite.

We need lots of house built __in the right places__ not in the field in the middle of nowhere, 3 miles from Glastonbury!

I agree with your last point - but if the people building the houses have to pay for the connecting roads and services then this will limit the appetite for building remote houses in the middle of nowhere.

However, regarding your observation about the value of the plots, this doesn't appear to be a problem to me unless you are the landowner who has already spent the £100k or so that you may have thought that they were worth. Presumably these plots are smaller than a fifth of an acre which gives the farmer up to £120k for an acre of second grade land which would be worth, what, 6k-8k/acre as farmland and probably only achieves any sort of return due to the area payments.

For the buyer, 30k for a plot is about right. He/she can spend another £130k building a decent , if not luxury , 4 bedroom house, with a garden without having to mortgage their working life to a bank to buy a crappy little box off one of the volume housebuilders. In the meantime, the farmer has some cash in the bank and one acre less of poor, unproductive land to worry about, EU taxpayers have a bit less subsidy cash to stump up and the LA gets five new sets of Council Tax. Apart from the banks and the big housebuilders, where are the losers in this?

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