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Fears as private equity moves in on social housing


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Fears as private equity moves in on social housing

https://www.standard.co.uk/business/focus-there-goes-the-neighbourhood-fears-as-private-equity-moves-in-on-social-housing-a3964271.html

 

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When the city of Madrid was running out of money in 2013, the council decided it had no choice but to sell a big tranche of its social housing to the private sector.

Overnight, 5000 of its most vulnerable families and individuals found themselves changed from being tenants of the council to clients of Goldman Sachs and private-equity giant Blackstone.

In some cases, the transition was painful; the new American owners allegedly whacked up rents when tenants’ contracts expired, sometimes by 40%, according to Reuters reports at the time.

Blackstone and Goldman say they always adhered to the law, but, given the controversy, many in the social housing world were worried when Blackstone declared in January that it was entering the British market too...

 

Edited by Saving For a Space Ship
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People without jobs generally will be unable to pay the rents whoever the landlords happen to be......down to the those holding the purse strings as to whether they are prepared to pay the landlords the rents they ask...whosoever holds the purse strings will be either the state or anyone ready, willing and able to pay the price that is asked..... ;)

 

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20 minutes ago, winkie said:

People without jobs generally will be unable to pay the rents whoever the landlords happen to be......down to the those holding the purse strings as to whether they are prepared to pay the landlords the rents they ask...whosoever holds the purse strings will be either the state or anyone ready, willing and able to pay the price that is asked..... ;)

 

Agreed.  PE want a stable (and guaranteed) return.  Either they think workers will pay and will turf out social tenants or that Government will step in some form of tenancy underwriting.

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1 hour ago, winkie said:

People without jobs generally will be unable to pay the rents whoever the landlords happen to be......down to the those holding the purse strings as to whether they are prepared to pay the landlords the rents they ask...whosoever holds the purse strings will be either the state or anyone ready, willing and able to pay the price that is asked..... ;)

 

You have seen the LHA funding rates?

You can get £2k a month paid for by the taxpayer for a 3 bed in London. If house prices in London fall expect more that take that trade... 

Crappy flat reduced from low starting point, maybe even ex council block, SDLT savings, rent out to the council for £2k a month... happy days.

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3 hours ago, spyguy said:

Its Spain.

Spain has 3 things - sunshine, loads of empty houses and no jobs.

 

It's Madrid. Prior to the pandemic very hard to get accommodation in the city of Madrid (unless you paid a huge increase on the previous year). A higher population density than London. And a per capita gdp better than the UK. Same with Barcelona and Bilbao.

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  • 3 weeks later...

 

The Big Boys Are Back Financializing Single-Family Houses

https://wolfstreet.com/2020/10/04/the-wolf-street-report-the-big-boys-are-back-financializing-single-family-houses/

Article focused on the US, but in Europe too..

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As after the last crisis, fueled by ultra-cheap money, they’re taking financialization of the housing market to the next level: Now it’s buy-to-rent, build-to-rent, sale-leasebacks, and buy-to-sell

 

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  • 433 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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