Monday, Oct 05, 2015

Disillusioned by Britain's dysfunctional housing market

Telegraph: Downsize to raise cash? It would COST us £90,000

Beryl Morris is keen to sell her two-storey, four-bedroom family home in the near future. She and her husband have loved it for the 33 years they've lived there - but now it’s too big to manage.
Downsizing isn’t an option for the couple, however.

Posted by cornishman @ 08:18 AM (4895 views)
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1. mombers said...

This is a c0ck up - no one should face a penalty for moving, this just exacerbates the misallocation of housing. One thing though:
What we dont understand is why our large family house will not buy us a modest three-bedroom retirement home. It doesnt make sense,
The vast majority of working people under 50 could never dream of affording a 3 bed flat (we only just managed to do so 2 years ago, before the recent ramp up in prices, and would never be able to do it now even on my large City salary). That said, just get on with it and build these people what they want and can obviously afford (a three bed flat costs less than half of 280k to build)

Monday, October 5, 2015 08:47AM Report Comment

2. mombers said...

Another two puzzling ones:
"creating better options for equity release"
Equity release will encourage people to stay in their oversized houses surely?
"Lenders are also being urged to introduce more flexible mortgage options. Many refuse to lend into retirement, or offer mortgages to borrowers aged over 65"
More lending against a very inelastic supply will just push prices up even more... Also how many of these pensioner mortgages will end up getting paid for by the taxpayer under SMI?
The main problem is that there is no suitable housing to move to though. Just like the bedroom tax, there is a huge problem with trying to push people to move if there isn't anywhere to move to.

Monday, October 5, 2015 09:50AM Report Comment

3. Pinkie67 said...

Have any of these elder folk in their too-big houses ever thought about sharing their homes? Rent a room, even? Then they can stay in their community too ... just a thought!

Monday, October 5, 2015 10:17AM Report Comment

4. cornishman said...

There is no real financial incentive to move. As some of the comments in the article suggest: install a downstairs shower and toilet, make the dining room into a bedroom and just abandon the upstairs and the garden. If one of the couple has to go into care, then the remaining one can stay in the house and the council (we taxpayers) will foot the bill for the care. Sell up, downsize and release cash - and the cash will have to be used to pay for the care.

On top of that, before too long the cash may very well incur a charge just to leave it in the bank.

Also, the value of the house is not taken into account when assessing eligibility for council tax benefit etc. Far better for the individual to have an expensive house and very little cash-capital/income.

Monday, October 5, 2015 11:58AM Report Comment

5. Janch said...

Maybe HTB should be re-targetted to HTM (Help to Move) for the elderly homeowner who wants to downsize but finds moving costs prohibitive. OK it's giving money to people who are actually quite well off (if they did but realise it) but if it releases homes for families who need them that would be a good thing and could even bring down prices of larger properties.

Monday, October 5, 2015 01:18PM Report Comment

6. Johnts said...

Bla..blal..bla.... We want more...bla...bla... We deserve more... Bla... Not giving it away..bls..

Tuesday, October 6, 2015 07:00AM Report Comment

7. icarus said...

A small flat in Cambridge for 600k? Cambridge is an appendage of London regarding funny money flowing in from around the world into new-build, empty flats for 'investment' purposes.

Tuesday, October 6, 2015 08:56AM Report Comment

8. phils said...


If one of the couple dies and the other needs to go into a home then the house will be sold to pay the care home bills.
regarding your comment on council tax benefit, maybe that should be scrapped.

Tuesday, October 6, 2015 04:54PM Report Comment

9. Robindevilliers said...

What a load of crap.

The premise of the article is that bigger homes in the sticks cost less than smaller homes in highly sought after areas. No surprise there. The article doesn't say anything more. Its a load of crap.

There is a housing crisis, but this kind of article just doesn't factor into it.

Tuesday, October 13, 2015 09:50AM Report Comment

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