tony51, on 17 November 2015 - 09:40 AM, said:
Which ultimately comes down to restricted supply, which comes down to the high cost of land, in turn caused by the Planning system.
Allow anyone to build houses wherever they want (subject to Building Regs) and housing would become affordable overnight.
A lovely idea, but missing the real issue. Yes, supply and demand is the driver. BUT, if you increased supply what will happen. What will happen is, the UK will look more attractive still, more people will come and prices go up. The root cause of the problem is that the UK is reasonably prosperous, and, it would seem, an attractive place to live. As long as this remains the case, house prices, rented or purchased will remain high. Anyone that thinks more houses will solve the problem is delusional.
tony51, on 17 November 2015 - 07:57 AM, said:
What seems to have been ignored is the situation of private tenants. There is an inherent injustice in the system if tenants of HAs have a right to buy their property, but private tenants don't.
Whats actually bonkers here is that my tenants pay me more every month than a mortgage would actually cost. But they cant get a mortgage thanks to the new rules because we have to protect them from themselves. They can clearly afford it, they have never missed a payment n 4 ears. But they dont meet the new criteria so have no choice but to rent. Madness!
RandAbuild, on 17 November 2015 - 10:24 AM, said:
This is the craziest, back of a fag packet, proposal to come forward for a long time. It’s supposed to work like this:
- Give tenants of housing associations the right to buy (it was a manifesto commitment, so they have to do it)
- Tenants get up to £103,900 discount in London, £77,900 elsewhere, after just 3 years
- If your house is valued at say £225k, after three years the Government (ie us) give you the full discount to buy it. Quite a good return, one might say, especially as you’ve only paid about 17k rent, and you've had your repairs done for free during this time
- The money to pay for this comes from selling expensive Council housing when it falls vacant.
- In most London Boroughs and many areas of the south east, virtually all housing will qualify. So it will reduce the rented stock available to people on the waiting list. In parts of Cambridge, they predict it will wipe out all Council housing (perhaps the Government's intention)
- The money will also pay for a one-to-one replacement by the housing association that sells to the Right to Buy purchaser (it isn’t used to repay debt)
- The record for doing this isn’t good - over the past 10 years, the rate of replacement has been 9 sales for 1 replacement
- The economics of this simply don't work, as there's not enough income from sales to pay for it all
- Over 40% of properties sold under RTB are now owned by private landlords, who mostly let the to people on Housing Benefit at a much higher rent than the housing association used to charge. So we pay for it twice over.
So as Joiner says, it’s a disaster for LAs and pretty bad for housing associations, who will be required to sell of their rented housing (what they were set up to do) and replace it with shared ownership or discounted market housing.
I’ve nothing against people owning their own home, but why should they be given huge handouts to help them? Where is the help for others who don’t happen to be lucky enough to live in a HA property?
Probably, because of my comments above, there are fw other options that will work?
ProDave, on 17 November 2015 - 01:09 PM, said:
If they sell up now, or when the rumours about private tenants getting a right to buy at a discount, then they would sell to any ordinary buyer.
If they wait until legislation is actually passed saying the tenants have a right to buy, then there will be a flood of evictions and a flood of houses on the market, all sitting empty, and a housing market crash.
I don't see it ending well. no private landlord is going to sit tight just hoping his tenant doesn't exercise their right to buy his house at a substantial discount.
Correct. Just issue a section 21 the day after legislation is passed and sell house.
Crofter, on 17 November 2015 - 06:36 PM, said:
To play devil's advocate, such a rebalancing of the market would be welcomed by many younger prospective buyers today. There is an argument that current house prices are completely unrealistic.
If I can try to sum up my viewpoint:Our property prices are artificially high, and private rental is a poverty trap into which nobody would willingly place themselves. We have a generation of young people unable to get on the ladder, who are paying the mortgages of those luckier than them. I have limited sympathy for buy-to-let investors. This country has a real problem whereby houses are seen primarily as investments. We should be prioritising the right for people to have a roof over their head, rather than the rights of opportunistic property investors.
Your first comment is wrong. Supply and demand dictates the price. But he the demand side cant be managed.
Whilst you may have limited sympathy for me, i do need to provide for my retirement. My pension that i paid into for 20 years (railway) will give me £1700.00 a year thanks to a certain Mr Brown. So what to do? A wise man said to me dont invest in anything you dont understand. My take is dont invest in anything that can / will disappear. So that means physical assets. So houses and cars it is. Always interested to see what other options are, but i trust no one else to look after my money. My pension is clear proof of that!
Edited by joiner, 18 November 2015 - 09:00 AM.