Plans to free up 25 million unused bedrooms

DaddyBear

Finally the social impact of high house prices is filtering through to agencies and the government.
However, I doubt that the property-owning generations that have spent the last decade delighting in their "hard-earned" wealth are going to give it up that easily.
Clearly retired couples living in homes with 2+ spare bedroom is not a new thing, however, in the past those homes were easily within financial reach of many families. Not any more.

The most interesting line comes from the housing minister. "Instead we will work with families to ensure that housing becomes more affordable over time."
That is clearly going to happen anyway, and it looks like the process will also be encouraged by government policy, especially as politicians gradually come to office that didn't profit from the property boom. Those expecting any sort of property price increase over the next decade are in for a shock.


http://www.bbc.co.uk/news/uk-15362474

Realmoney_2

DaddyBear wrote: »

Finally the social impact of high house prices is filtering through to agencies and the government.
However, I doubt that the property-owning generations that have spent the last decade delighting in their "hard-earned" wealth are going to give it up that easily.
Clearly retired couple living in homes with 2+ spare bedroom is not a new thing, however, in the past those homes were easily within financial reach of many families. Not any more.

The most interesting line in the comes from the housing minister. "Instead we will work with families to ensure that housing becomes more affordable over time."
That is clearly going to happen anyway, and it looks like the process will also be encouraged by government policy, especially as politicians gradually come to office that didn't profit from the property boom. Those expecting any sort of property price increase over the next decade are in for a shock.


http://www.bbc.co.uk/news/uk-15362474

Absolutely right- Instead we will work with families to ensure that housing becomes more affordable over time."
That is clearly going to happen anyway

Funny how up till now the government has been more like " we will work with families to ensure that housing prices are propped up with ultra low rates and keeping people in their homes when they should be repossessed."

If they stop propping them up and change policy then we could see big falls in house prices.

One way or another you are spot on when you say " Those expecting any sort of property price increase over the next decade are in for a shock."

MacMickster

They suggest a tax break in the form of exemption from Stamp Duty for those over 65 downsizing. I can't see that this will have any impact at all if pensioners are comfortable financially, and would play only a very small part in the decision of pensioners wanting to release funds from their property to assist them in their retirement. Most view their property as a home rather than a financial asset. I wouldn't expect this to have any impact on house prices.

Social housing should be a different matter however. The social housing stock is a national asset which should be allocated according to need, rather than being seen as a single house for life. As a nation we can't afford to have a single pensioner living in a 3 or 4 bedroom house if it is needed by a family.

HAMISH_MCTAVISH

Well, I see this non-starter of a hare brained idea was met with snorts of derision from the powers that be.

Housing Minister Grant Shapps said: "Whilst this report makes interesting reading, we do not agree that people should be taxed or bullied out of their homes.

Crikey Grant, could you be any more brutal in your put-down?

HAMISH_MCTAVISH

DaddyBear wrote: »

Finally the social impact of high house prices is filtering through to agencies and the government.

:rotfl:

"Agencies and the government" eh?

Let's see who's behind this steaming pile of claptrap.

report co-author Matthew Griffiths.

Ahhh, it's our old friends at "Priced Out", re-inventing themselves as "The Intergenerational Foundation".

And what do they want?

To bully old people out of their homes, forcing them to downsize into smaller accommodation without the spare bedrooms to have their family come and visit at Christmas time, or for the Grandchildren to come and stay during School holidays.

Of course, Matt Griffiths knows full well what the real problem is, and admits it in the article.

"real problems in a country where new house-building is almost non-existent."

Well, Priced Out, that's what you get when the mortgage rationing YOU SUPPORT sends house building levels crashing down to the lowest levels since the late 1800's.

Bullying pensioners out of their homes through taxing them more just isn't going to happen.

It's political suicide and a total non-starter.

shortchanged_2

HAMISH_MCTAVISH wrote: »

And what do they want?

To bully old people out of their homes, forcing them to downsize into smaller accommodation without the spare bedrooms to have their family come and visit at Christmas time, or for the Grandchildren to come and stay during School holidays.

This said by the person who says young families should just get on with it and have 2 adults and 3 kids in a 2 bedroom house and stop whinging if thats all they can afford.

JonnyBravo

A soundbite.
Old people hate change at the best of times and the thought they might be tempted to downsize due to stamp duty exemption is frankly absurd and laughable as mentioned by MacMickster.
My olds have already told me they're leaving their house in a box..... thats probably another 20-30 years of having a house too big for them according to some. Well tough. I reckon I'll be doing something similar.

lemonjelly

This is a ridiculous idea.
Currently social tenants continue to have the right to remain in under-occupied properties, & that is its own political hot potato. But surely there is a huge issue concerning attempting to induce OO's to move out of the property they own, have bought & worked for, & purchase a less desireable house.
Hardly a vote winner is it?

Who do they expect will buy these larger houses that this is aimed at?

& perversely, wouldn't this act against the interests of 1st time buyers? After all, these downsizers would be cash rich & able to outbid almost all FTB's?

DaddyBear

HAMISH_MCTAVISH wrote: »

It's political suicide and a total non-starter.

Totally agree. However, articles like this could encourage a U-Turn in government policy from one that is propping up house prices to one that allows the inevitable falls to happen sooner.

MRSTITTLEMOUSE

I have four spare bedrooms and two spare living rooms downstairs that never get used however we like the space which is why we moved here.
We were in our late 50s when we actually moved INTO never mind out of a bigger property.
We wanted more space to enable us to pursue hobbies when we retire
If a family had wanted my house its strange that people with families did'nt even view it.
The only people interested were developers who wanted to turn this beautiful house into flats but that was probably because of the cost.
Which brings me to the fact that if people can't afford a larger property why should they get one.
Strangely we lived in a smaller house when we had children because we could'nt afford to buy larger.
Surely this is the way things are,you buy what you can afford not what you think people should be selling for just because you have too many kids and can't afford to live.
If thats the case don't have the kids till you can afford to house them.
I don't know any of my friends who would move into a smaller property (and some have much larger houses than me) and why should they.

Going4TheDream

My road is full of elderly people living in 3/4 bed large semis or 4/5 bed detached. it is a very nice quiet area but has very very few families and younger people, and by younger I mean people in their 40's! The houses hardly ever come on the market, usually only when someone passes away which suggests to me that the elderly can easily afford to live there and maintain them. Why would they want to move and more importantly why should they, and who would be able to afford them as they dont come cheap?