BBC: Where property prices are set by what local people earn

Sunsaru

Now this is a scheme I could easily get behind.

https://www.bbc.co.uk/news/business-65271214

GDB2222

Sunsaru said:

Now this is a scheme I could easily get behind.

https://www.bbc.co.uk/news/business-65271214

Edit: after posting this I realise it may break the forum rules. If it does I'll ask to get it pulled.

The local authority donated the land, and it has enabled a handful of very lucky people to get cut price properties. It's not really going to solve the housing shortfall. 

Sunsaru

GDB2222 said:

Sunsaru said:

Now this is a scheme I could easily get behind.

https://www.bbc.co.uk/news/business-65271214

Edit: after posting this I realise it may break the forum rules. If it does I'll ask to get it pulled.

The local authority donated the land, and it has enabled a handful of very lucky people to get cut price properties. It's not really going to solve the housing shortfall. 

Not in the short term no and it is a trial, but it could be one part of a long term solution.

GDB2222

It's only going to make a significant difference if there's lots of free land available, and of course there isn't. 

YoungBlueEyes

I heard that piece on the radio yesterday lunchtime and thought it was a good idea, for those few people. It won't solve the housing crisis by any means but at least someone's trying to think of, and trial, a different approach.

[Deleted User]

It's a good idea, but the problem is finding the land. Anything that isn't donated to one of these schemes will be bought by developers who can always pay more for it.

The apartments they built are tiny too. 1 bedroom. They say they are to help get on the housing ladder, but the value of the flat is a multiple of local average income, so is constantly falling further behind average house prices. Moving up the ladder is going to be extremely difficult, if not impossible.

It solves a short term problem for a small number of people, but it unfortunately won't do much to fix the crisis in Britain.

ReadingTim

Suspect most people would get behind this, until some "unelected faceless bureaucrat" decides that they're not local enough and blocks their proposed purchase, whereupon they'll suddenly become far more free market about the whole thing….

Exodi

As others have said above, I hate to be pessimistic but this sounds more like a postcode lottery than a solution to the housing crisis in Britain.

It's also, by it's nature, not sustainable.

user1977

Not clear from the article how mortgageable these properties are - there is mention of a mortgage by one owner, but I expect this sort of restriction may be put in the "too difficult to bother with" pile by many lenders.

Sarah1Mitty2

https://forums.moneysavingexpert.com/discussion/comment/80025870#Comment_80025870

No one viewing property to buy or rent is homeless, the "shortfall" is more about not enough "dream" or "forever" homes, not really about a shortage of units. Interest rates will soon solve the pricing issue as they are designed to bring down prices, something the economy badly needs.

spoovy

Interest rates are the main lever used to keep inflation near to the 2% target, and houses prices aren't counted in the relevant inflation figures. So no, higher interest rates are not designed to bring down house prices.

House prices have already started rising again after only about a 4% dip, and interest rates are expected to start going down again next year.

I'm afraid this scheme in Lewisham will just benefit a tiny, statistically insignificant group while everyone else continues to deal with the wage/price difference increasing ever more.