Friday, September 7, 2012
They own land! Give them money!
Affordable housing rules dropped to boost builders
"Under existing rules builders are required to designate a set percentage of every development either for housing associations or available at a reduced price. The coalition says this requirement can be too onerous and will allow developers an opt-out if they can prove that it economically unviable to develop a site." It is of course nearly always economically viable to develop a site, you take £30,000's worth of bricks and timber and roof tiles etc and turn it into a house worth at least £80,000, the £50,000 is earned fair and square by architects, bricklayers, roofers, plumbers etc. What they are actually talking about is protecting the land-bankers' super-profits, i.e. the land value element.
Posted by mark wadsworth @ 10:37 AM (1692 views)
6 thoughts on “They own land! Give them money!”
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bankster says:
At the end of the day the old policy never increased the number of “affordable homes” it just meant devlopers had to build a token amount of small houses which weren’t cheap and were snapped up by investors anyway (unless they stuffed a few brown envelopes- in which case they didn’t even have to do that) 🙂
dill says:
Let’s just clarify here what they mean by ‘affordable’. It is:
Homes for sale or for rent which are below market value.
Given that no-one knows what market value truly is, other than materially below present assumptions (which has been seriously and detrimentally resisted), the phrase ‘affordable’ has become redundant in Britain because the majority can’t really afford to play this game at these erroneous price levels now or, especially, in the future.
Losses must be taken now. Considerable margins must be reduced.
Let your children breathe, Britain.
mark wadsworth says:
Bankster: “the old policy never increased the number of “affordable homes””
Agreed, it almost certainly didn’t, but the fact that developers are so keen to get rid of these provisions hardly fills me with confidence that house prices will now start falling.
dill says:
@3
Of course they won’t. Most of them have shareholders. Watch their balance sheets as time unfolds – it won’t be pretty.
You’ve clearly lost the faith – must be the old rentier in you!
fubar says:
Why Mr Bond, I’ve been expecting you. I very nearly posted the same headline when I heard this ridiculous policy the other day. Another little slash at the countries vitals by a cowardly government. The fact we even have the phrase “affordable homes” in the 21st century is a national disgrace.
dill says:
@ fubar
The nation is a disgrace.