Wow!

TickersPlaysPop

I'm really disappointed to find out firstly a select committy report and a gov policy to support financially a scheme to expand the private rental market. It is great to see evidence that pension funds are looking to increase investment, something that I suggested a while back but for a more large scale operation (with laws and regs that benefit investors, tenants and the market as a whole) to calm the market and encourage slow sustainable and less volatile price growth.

Will the gov initiative help push property prices down below wage increase for the length of time needed to make properties more affordable?

One of the root causes of demand for rental property is because prices are so high that many cannot afford to buy. The high prices are legacy of the credit feeding frenzy pre 2008 and the lack of house building. Both of which were allowed to happen by those responsible and with the power to do so.

These same people are pushing the housing market still further out of the reach of those wanting to buy their home and benefit from the huge % of take home pay spent on the roof above their head.

I completely understand the need for rental property, I myself rented for different reasons in my lifetime. What I am concerned about is the growth of the rental sector disadvantaging the owner occupier sector via influence on property prices.

Listerbelle

MrRee wrote: »

Some interesting data has come out this morning:-

11% of people own a second home or a BTL.

Is this reflected here on these Forums?

Was some other interesting data about the wealth of individuals, like 1 in 5 of University Graduates are worth more than £1 million.

I haven't read the entire thread.

We have three BTLs

Cornucopia

I've asked this before and never got a response...

What is an affordable price for housing - to buy or to rent?

IveSeenTheLight

Cornucopia wrote: »

I've asked this before and never got a response...

What is an affordable price for housing - to buy or to rent?

The extent to which something is affordable, as measured by its cost relative to the amount that the purchaser is able to pay

With regards to housing (both for OO and for rental), there is a limit on the supply of housing, meaning that the price is escalated to a level which limits the effective demand.

What this mean is that those of lower income are limited to lower options of housing.

It's a bit similar to myself admiring the Aston Martin DB7, however my income does not support this so I drive a vehicle which is in relation to my earnings.

The only way I could afford the DB7 is if I was to substantially increase my income or there was a significant influx or new supply.

Back to housing, whilst I understand the idea of a Utopia where everyone can afford to buy, the stark reality is that is not realistic and would severely impact on the flexibility and mobility of people to move around the country (how could you move if all properties were OO and the available options were severely restricted.)

My figures, but we probably need an additional 4 million homes to start to support some ideas on here of lower earners being able to afford property.
I do have to question how can this be afforded in a short timeframe where the more you build, the lower your asset value becomes.

CLAPTON

Cornucopia wrote: »

I've asked this before and never got a response...

What is an affordable price for housing - to buy or to rent?

'affordable' like 'sustainable' or 'hard working family' or 'squeezed middle'

are basically catch phases that mean something like ' I am a kindly, caring politician that understand your concerns (oh and please vote for me).

the other meaning of 'affordable' as in 'affordable housing' is a technical one that has a special meaning in planner speak i.e. it means 'social' housing for poor people.

This usage is preferred by politician because no-one really objects to 'affordable housing ' being built but lots of people object to council or social housing especially if it is next door to them.

captainhindsight_2

MrRee wrote: »

11% of people own a second home or a BTL.

With some houses available for around £50,000 its not a big barrier to coming a BTL landlord.

I've never paid more than £75,000 for a BTL, which isnt a massive stretch for a lot of people to become landlords.

Bantex_2

CLAPTON wrote: »

'affordable' like 'sustainable' or 'hard working family' or 'squeezed middle'

are basically catch phases that mean something like ' I am a kindly, caring politician that understand your concerns (oh and please vote for me).

the other meaning of 'affordable' as in 'affordable housing' is a technical one that has a special meaning in planner speak i.e. it means 'social' housing for poor people.

This usage is preferred by politician because no-one really objects to 'affordable housing ' being built but lots of people object to council or social housing especially if it is next door to them.

People would not object to social housing if it was properly run as when the early council houses or before that Alms houses were first developed. The tenancy agreements were very strict regarding behaviour etc and if you did not behave like a good citizen you were out.

CLAPTON

Bantex wrote: »

People would not object to social housing if it was properly run as when the early council houses or before that Alms houses were first developed. The tenancy agreements were very strict regarding behaviour etc and if you did not behave like a good citizen you were out.

if things were different then things would be different

at the moment things are as they are


many people object to social housing, not because of any perceived bad behaviour, but because they think that poor people should be subsidised and not a particular house and other reasons.

IveSeenTheLight

captainhindsight wrote: »

With some houses available for around £50,000 its not a big barrier to coming a BTL landlord.

I've never paid more than £75,000 for a BTL, which isnt a massive stretch for a lot of people to become landlords.

Or indeed owners

captainhindsight_2

CLAPTON wrote: »

if things were different then things would be different

at the moment things are as they are


many people object to social housing, not because of any perceived bad behaviour, but because they think that poor people should be subsidised and not a particular house and other reasons.

The problem with any type of housing is that you get slums of one type of housing. Near where I live there is an estate of 'affordable/council housing, an estate of £250000 houses, another with £500000 houses then another with just £750000 houses.

All these types of housing should be all mixed together and then this would mean people from different backgrounds would mix together and I believe this would solve many problems

Much like if you go into any old village or town where you will see a very large house with a couple of smaller houses next to it then a slightly bigger house and so on, this way everybody is integrated and mixes with each other and solves many social issues IMO.

I believe modern housing policy is forcing developers to deliver this type of housing so hopefully we wont end up with large areas and estates of carbon copy housing with people only mixing with people just like themselves making a polarized society.