Wednesday, Oct 07, 2015

Are they feeling the heat?

Guardian: Are they feeling the heat?

"David Cameron will promise to sweep away planning rules that require property developers to build affordable homes for rent in a bid to increase the building of homes for first-time buyers. In a bid to shift from generation rent to generation buy, Cameron will say in his speech at the Conservative party conference on Wednesday that he hopes his new starter homes proposal can unblock housebuilding in the UK by abolishing demands that developers provide a certain amount of affordable housing to rent in new developments." I'm pretty cold towards all political parties when it comes to housing policy but who knows? Could the current lot have stumbled across something useful?

Posted by quiet guy @ 01:06 AM (6229 views)
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1. mombers said...

I'm guessing these 'starter homes' will not have any restrictions on them so they become unaffordable after 5 years or whatever the restricted period is? Just like Right to Buy.
Also how are they going to handle the overwhelming demand for 90k handouts (20% off 450k)? And of course explain to the people who don't get this handout why they are deemed less worthy...

Wednesday, October 7, 2015 09:03AM Report Comment

2. Cassandra said...

With global interest rates about to rise (too many Black Swans out there , Junk Bonds, Emerging Markets etc), Camerons being not only dumb (well the EU do call him "the happy idiot") but hugely irresponsible. To encourage anyone to buy at these prices is lunacy and probably criminal.

Allow money to reach its value, property in the UK would reach fair value (3.5 times income), overshoot (markets that cannot be short sold always do), then , when everyone has walked away in disgust (2019?) think about buying.

To anyone on this site renting and wanting to buy I'd say don't despair, in 1989 I bought a flat in W1 London, it was reduced from 375k to 225k, I bought at 125k , by 1991 I couldn't get 60k for it, 1992 nothing doing at 40k..... the market between 1989 and 1994 was nowhere near as rigged as todays market.

To anyone on this site carping on about "it's different this time", heed the wise words of Sir John Templeton "its never , different this time"

To everyone else, enjoy the crash, it's gonna be a doozy !!

Wednesday, October 7, 2015 09:06PM Report Comment

3. libertas said...

Fabulous, though again, not limited to citizens, so many will get scooped up by newcomers, subsidised by natives.

This will encourage developers to be developers. Forcing them to be landlords stops them re-investing in development. Should boost overall housing starts. What it will do is re-distribute house prices from first time buyers to other purchasers, which is pretty much what happens already. Overall prices should not be altered from what the market seeks out.

Wednesday, October 7, 2015 09:23PM Report Comment

4. britishblue said...

I suspect Corbyn has got them rattled and they need to introduce policies to counter what he will major on in the next few years. The only way to sort the housing policy is to build on green belt. If we took 0.175% of the 13% of greenbelt in the UK and brought it down to 12.825% we could build a million new homes and all the infrastructure to go with it. ( parks, office buildings, road, rail, etc, etc). If we took 0.35% of the 13% greenbelt and brought it down to 12.65% we could build 2 million new homes and all the infrastructure to go with it. But this would require government intervention to compulsory purchase land and governements to build, which in our modern days society is bad, it is left wing exremism and marxism and everyone should throw their heads up in horror at the suggestion.

Thursday, October 8, 2015 07:01AM Report Comment

5. Rob Mk said...

Unless in favour of developer and made law - useless.
Developers know of a number of avoidance tactics to get just what they want: loopholes, delaying games, bribes (direct and diversionary).
Oh and new builds way too small rooms and gardens and parking, why do we put up with this, sheeple?
Beds council have recently imposed minimum requirements for parking: one space per bedroom, minimum garage widths and lengths..........

Thursday, October 8, 2015 07:03AM Report Comment

6. libertas said...

british blue, no, this is a swipe at Labour Policy. All the Labour Councils want moar social housing for rent for they are for dependency. This will really rattle and upset them, and yet the Tories are right. Most people want to buy, not rent, despite the minority of self defacing nutters lurking on this site.

Thursday, October 8, 2015 07:19AM Report Comment

7. libertas said...

By the way, it is bollax that only local authorities are capable of building on greenfield sites.

Thursday, October 8, 2015 07:21AM Report Comment

8. hpwatcher said...

Most people want to buy, not rent, despite the minority of self defacing nutters lurking on this site.

Most people? Actually EVERYONE wants to buy, it's just a question of price...or in the UK case, a question of debt.

UK property is looking very shaky at the moment.

I've arranged to see a house, and been advised - by the estate agent - to ''completely ignore the asking price'' and that I ''should be able to get a real bargain''. Last time that sort of thing happened was 2009.

You can see things changing on almost a daily basis.

Thursday, October 8, 2015 07:44AM Report Comment

9. icarus said...

What's this about developers preferring building for sale (money upfront) rather than for rent (income steam over decades)? Surely there are investors who will buy from the developers?

And wouldn't Rent to Buy be more helpful to more people than this 'affordable buying' scheme?

Thursday, October 8, 2015 08:07AM Report Comment

10. britishblue said...

Libertas @4. I think you are overgeneralising. People want a roof over their head at a fair price. Most would like to own and some would prefer to rent: All at a price that is fair and comparable to their income as was mainstream Tory policy 30 years ago.
Greenbelt is simply a throw back to policy 70 years ago when arbitary lines were drawn on the map to stop urban sprawl, it has little relevance to modern day living, where in most towns around london, community areas, small business premises, old pubs and many more parts of our society are being bulldozed or redeveloped for cramped housing with no parking. We could solve the housing crisis, reduce the huge cost to the state of private landlords of social tenants, create much better living environments and build homes that are more eco sound for the future. And at the same time make the UK more ompetitive as higher housing costs have to feed into higher wages and production costs so we are not on a level playing field with other countries. However, If large scale governement housing took place we would have a house price collapse like never before. The only way I see this happening is that the next financial crash that we are heading into is so horrendous that the system collapsed in advance and then Corbyn gets elected because he is different. It would then be like a post war economy where common sense took place over greed and as we dont have anough houses, people would unite and say it is a social need to build. There are many people out there that think 2008 was the baby crisis and we are heading for an almighty meltdown or we will be taken into war. If either of these scenarious plays out then events like I have outlined could become a reality.

Thursday, October 8, 2015 08:08AM Report Comment

11. icarus said...

bb - you're not Mark W by any chance?

Thursday, October 8, 2015 08:41AM Report Comment

12. britishblue said...

I@9.. No.I've commented on this site for a good few years. I miss some of his comments though. I don't know why he dissapeared. However, I truly beleive that we are heading for the mother of all crisis in the next couple of years and there will be a major reset across many areas of society.

Thursday, October 8, 2015 09:00AM Report Comment

13. mombers said...

@10 MW was banned due to asking too many questions of flashman...

Thursday, October 8, 2015 09:55AM Report Comment

14. hpwatcher said...

I@9.. No.I've commented on this site for a good few years. I miss some of his comments though. I don't know why he dissapeared. However, I truly beleive that we are heading for the mother of all crisis in the next couple of years and there will be a major reset across many areas of society.

Yup - I can testify to that.

@10 MW was banned due to asking too many questions of flashman...

Goodness knows how he became so powerful......

Thursday, October 8, 2015 10:01AM Report Comment

15. mombers said...

@8 high housing costs don't push up house prices. We have the highest rents and house prices (i.e. worst value) in the world but we don't have the highest wages by any stretch. Private house prices are capitalised private rents, and private rents are determined by wages. Social housing on the other hand is provided at cost, which is pretty much the same across the country as the building industry is competitive. So the more people who are socially housed, the less private landlords can extract from aggregate wages. Those socially housed or owner occupiers with low mortgages have more income to spend on the productive economy so it's a real loss if so much of people's private property is expropriated through rent and mortgages as this spending does not create any meaningful economic activity. My mortgage payment does not cause anything to be produced, if I was paying cost plus a normal profit margin on my housing, I could spend money on things that actually employ people and create wealth...
Unfortunately this policy will produce a temporary and small reduction in the amount of money that banks and landlords trouser, but as soon as the lucky few who get these discounts sell, either a bank or a landlord will step in, just like what happened with Right to Buy.

Thursday, October 8, 2015 10:03AM Report Comment

16. Harveygg said...

So I'm 44, I've been locked into renting for almost 10 years. Would love to buy again....but I'm not worthy as over 40 to the massive discount offered to people in their 20s and 30s....nice.

Thursday, October 8, 2015 10:41AM Report Comment

17. jack c said...

I've finally capitulated and elected to buy a property for my Daughter. Interestingly the agreed price represents a 32.5% reduction on the peak price of the property which sold on 10/11/2006.

Thursday, October 8, 2015 01:10PM Report Comment

18. britishblue said...

J@14. I guess this isnt in London then?

Thursday, October 8, 2015 02:36PM Report Comment

19. letthemfall said...

"the minority of self defacing nutters lurking on this site"
Indeed - the cloud-seeding conspiracists, for example

Thursday, October 8, 2015 03:42PM Report Comment

20. jack c said...

BB (Thursday, October 8, 2015 02:36PM) no it's "oop North" (South Tyneside to be precise)

Thursday, October 8, 2015 04:02PM Report Comment

21. icarus said...

bb @ 10 - thanks for clarifying.

bb @ 3 & 8. Even more relevant than building on the green belt, especially for London, is building on publicly-owned, under-used land. In 'The Public Wealth of Nations' Dag Detter and Stefan Folster show that vast amounts of commercial assets around the world are held in public ownership, most of which is poorly managed/accounted and exploited. Probably 30% of land in London is owned by boroughs, much in low-density housing estates, and even more by Transport for London and the Army. A large proportion is on good transport links and would generate massive public funds and solve much of the housing problem if it were properly exploited for that purpose.

(See Chris Giles 'Build houses on Britain's wasted public land' in today's FT)

Thursday, October 8, 2015 05:40PM Report Comment

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