Economy & Banks

I personally know one person who bought a new build flat next to Tate modern 2 / 3 year ago. It has never been lived in. It could have been a home for a couple with a id or two for the last 2 or 3 years.

Lots of foreigners see capital appreciation as the goal and occupation as a hassle that won't bring in much money and will stop the flat being new when they come to re-sell.

They're foolish then, or stupidly rich. You'd make more renting it.

I don't think that's the norm for most normal properties. Maybe for the off-plan sales in new developments.

Myth 1 - I agree - we need to spread the wealth around the country.

Myth 2 - people priced out of mayfair buy in - say - St John's wood. The people priced out of there buy in Chiswick. The people priced out of there buy in Wandsworth. The people priced out of there buy in streatham. Knock on effect.

Yes, but one Russian buying a million pound penthouse does not create hundreds of students and designer types looking for flats in Shoreditch. You're blaming it all on foreigners when in fact most of the money is from closer to home.

Why is shared ownership a disgrace?

Shared ownership is a disgrace. Shit shit system. Social housing should be for those who do not have jobs or who can't work - not for those who do not earn enough from a perfectly respectable job to buy a private home.

We need to punish developers who hoard land, and speculators and second home owners who keep property empty, spread the wealth to get people out of London and the south east, spend more tax payers money on social housing, drive wages up to levels where people can actually live and not rely on income support / housing benefit.

You are Citizen Smith and I claim my £5.

Teasing aside, I don't think that punishing those particular people - popular as they would undoubtedly be - would actually fix the problem. Spreading the wealth out of London - yeah, maybe, but it's hard to do. Trust me, people are trying.

As for higher wages - how do you do that without just stoking more asset price inflation?

Land banks are what big property companies sit on, deciding not to build housing we need now, rather build it at some indeterminate point in the future when they think that they can make more money.

Most people understand land banks to be investment schemes were you buy a plot of land that the land bank manager claims will be developed, in the expectation that the value will rise when planning permission is granted. By and large, it never is, and you've paid massively over the odds for a couple of feet in a field somewhere.

The big property developers don't tend to carry excess land on their books, as they have enough cash flow problems without tying up capital in pointless speculation.

Ah, Jeez, but without the immigration we won't have the economic growth needed to pay for our ageing and increasingly long-lived population, so you're damned if you do and you're damned if you don't, basically.

"It does not address the issue of unaffordability. They are - from what I know - hard to sell, and you're still fucked if you want to trade up. Shared ownership AFAIAC is only good for people who want a long term secure rental - and that should be available to all not just those who buy 25% of the house that they are renting."

My first home was shared ownership. It might not be right for everybody, but a great entry level housing concept, if you ask me, certainly not a disgrace.

How to get to this point is a very difficulyt question to answer.

No, it's very easy, but political suicide. You just have to keep interest rates at a level which promotes investment in things other than property.

"How was your experience of selling up?"

Surprisingly easy, and yes, I acknowledge that that might not be the norm. The parents of a girl I knew at UNI bought my share.

"From what I have heard it can be quite difficult."

So I understand. To the best of my knowledge "friend of a friend" kinda schemes are quite common.

"How did you afford the next step up the property ladder?"

The usual way I suppose... Basically invested everything I owned and bought a house with my ex-wife borrowing and begging from friends and both our families. Due to work I now mainly rent or live in company accommodations, but that's besides the point.

Seeing as we are talking about scarcity and affordability of housing, Moray Council in Scotland have implemented a scheme to make sure vacant properties are filled by increasing council tax by 50% in the first year the property is listed as unoccupied and then 100% every year thereafter.

Increasing supply would help to deflate the rental market bubble and therefore reduce the attraction for the buy to let / investment buyers.

Sounds good in principle but how is it implemented? Are you required to list as unoccupied? If so, what happens if you don't? What is unoccupied even as? I imagine its easy to get around if the person wishes.

if its not unoccupied, they'll have to pay the council tax.

Better than paying 50% more in the first year, 100% more after that. Or are these increases on the reduced CT for an unoccupied home?

http://www.scotland.gov.uk/Topics/Government/local-government/17999/counciltax/Secondhomes

British born and bred people

British people don't breed, they receive breeding. :)

Born and Bread

Bakery punnage team, assemble!

We've done baking puns so many times before, I can't really rise to it now.

good, let's roll onto the next subject then

Last thing we knead.

I believe such companies should be encouraged to develop ASAP by the tax system.

They already are by not having to pay VAT on new build housing.

The easiest way of guaranteeing enough good quality and affordable housing is built in this country that can benefit all sections of society is for councils to start building again and to funnel more investment (via our state owned banks) via responsible housing trusts.

Or make the North East of England a desirable place to live in terms of jobs, culture, sport etc.

Or make the North East of England a desirable place to live in terms of jobs, culture, sport etc.

lol...I was born there but lol

It hasn't happened in the last 2000 years but with modern tech we could have the next Silly Cone Valley on our hands. Or maybe they could go the Dubai route and build some fake islands in the shape of a pasty and a pint glass?

I think some people have taken this on board will local housing trusts branching into mid market rental properties as they say.

The next tier up from low cost social housing and aimed squarely at Yopros who want something stable.

I think Housing Associations are the way forward when it comes to creating some equality in the housing market. The not for profit model provides transparency and accountability as well as establishing the building blocks of a community.

Also my 100% inheritance tax would keep a constant cheap supply of houses in local authority control/being sold off cheaply.

Vote for me!