Showing posts with label housing shortage. Show all posts
Showing posts with label housing shortage. Show all posts

Monday, 30 September 2013

London Housing Crisis: How Would Labour Fix It?

This article by Dave Hill of theguardian on September 29th, 2013 reveals the ongoing debate that is taking place about the capital's particular housing problems behind the scenes since Ed Miliband's conference speech offered big policy ideas, but was short on detail.

The housing element of Ed Miliband's Labour conference speech was greeted by the wiser commentators with a mixture of disappointment, puzzlement and hope. Colin Wiles pointed out that despite that heavily-trailed pledge to be building 200,000 new homes a year by 2020 if Labour wins in 2015, only a few words of the Labour leader's oration were devoted to housing. He quoted all 212 of them in full, and so will I:
So we'll say to private developers, you can't just sit on land and refuse to build. We will give them a very clear message - either use the land or lose the land, that is what the next Labour government will do. We'll say to local authorities that they have a right to grow, and neighbouring authorities can't just stop them. We'll identify new towns and garden cities and we'll have a clear aim that by the end of the parliament Britain will be building 200,000 homes a year, more than at any time in a generation.
What do these words really amount to and how much encouragement should London, with its distinctive and growing clamour of housing troubles, draw from them?

As I wrote just before Miliband got to his feet in Brighton, the capital could be needing about half of those 200,000 when and if the Labour leader becomes prime minister, suggesting that the target isn't nearly big enough for either London or the UK as a whole. Or Britain. Or England. Jules Birch joined Wiles in wondering precisely which bits of the British Isles Miliband was applying the 200,000 figure to. For Lynsey Hanley the speech was a mere step forward when what's required is a giant leap.

However, both Birch and Wiles found some encouragement in those few dozen words. And their poverty of detail belies the scope of debate in Labour circles about housing policy, not least as it would apply in London should Miliband enter Number 10 and a Labour mayor - Jowell? Khan? Lammy? Adonis? - take command of City Hall in 2016.

There is a strong desire to clamp down on the scandal of land banking for massive profit in London at a time when the housing shortage is critical and overcrowding rife. Shelter's Roger Harding says here that the GLA reckons about half the hoarded sites in the capital aren't even owned by property developers, but by hedge funds and banks with no intention of building so much as a garden shed on them.

We already knew shadow London minister Sadiq Khan is giving some thought to if it's time for a land value tax, which could put a big break on speculation, and I'm told he has found the Smith Institute's case for a property speculation tax "very interesting".

Miliband's "use it or lose it" line on this had right-wing pundits howling about totalitarian state "theft" but even prominent London Tories are calling for radical remedies. In June, Conservative London Assembly member Tony Arbour asked for "the problem of land banking" to be dealt with by boroughs demanding that planning consents set a date for the plan's completion. Boris Johnson himself re-affirmed during the same debate that he is prepared to make greater use of compulsory purchase orders to deal with the "pernicious" phenomenon.

Labour policy thinkers are also putting their minds to devising a concept of "affordable" housing that isn't outright laughable, as is the case with the government's malfunctioning "affordable rent" ploy. How should "affordable" be defined? Who should decide?

There is, it seems, broad agreement that a "fairly high" percentage of the new homes Labour would want built in London would be for social rent as conventionally understood.

On the private rented sector it isn't only Khan who likes Newham council's accreditation scheme for private landlords. Shelter's proposal for inflation-linked, five-year stable rental contracts appears much admired as a better way of limiting rent increases and improving tenant insecurity than old-style rent controls, though the party hasn't yet worked out whether or not it thinks these should be statutory.

Miliband has asked the former BBC Trust chair Sir Michael Lyons to look into ways to to prevent precious land being left unused while its owners idly watch its value mount. Sir Michael will also consider the development of those "new towns and garden cities", a good percentage of which would very likely be within easy commuting reach of the capital. How times have changed. The New Towns built in London's orbit after the last war - Stevenage, Crawley, Basildon and so on - spoke to a readiness among Londoners to leave a smogged, bomb-ravaged London behind. The new New Towns would be in part a response to more and more people wanting to be here.

I'm told that firmer Labour proposals for housing in London will emerge in the coming months. Dare we hope they will be bold?

Article Source: http://www.theguardian.com/uk-news/davehillblog/2013/sep/29/how-would-labour-solve-london-housing-crisis

Tuesday, 17 September 2013

House Prices Rise Again Fuelling Fears of a 'Bubble'

Another house prices increase in addition to low mortgage interest rates could be mean economic crisis for the country according to this article by Eileen Kersey of Digital Journal on September 16th, 2013.

London - When the economic crisis hit in 2008 it had direct links to the housing market. The UK has experienced inflated house prices in the past and the "bubble" subsequently bursting. Could the introduction of a Government scheme to help buy homes be bad news? 
 
People buy homes for many reasons -- to get a step on the housing ladder, investment, to get a family home or as there is little alternative available. 
 
News that house prices in parts of the UK are rapidly increasing, added to low mortgage interest rates, may be a winner for householders but it could be bad economic news for the country. 
 
The UK is suffering a housing shortage. The ill-thought out "bedroom tax" was allegedly created to ease this shortage, but to date has failed. Householders faced with a reduction in benefit or moving to a smaller property faced "Catch 22" -- there were no properties available. 
 
The coalition government's Help To Buy Scheme offers a lifeline to would be homeowners. On the surface it sounds a good scheme but there are some possible pitfalls. One for the British economy is that it could create a "housing bubble" which sooner or later will burst. If that happens any short term monetary gains you may have made will soon be wiped out. 
 
Deputy Prime Minister, and leader of the Liberal Democrat party, Nick Clegg insits that the UK is not facing another "housing bubble". The Lib Dems are holding their annual conference and Monday the Irish Examiner reports: 
 
 Nick Clegg, Britain’s deputy prime minister, has said that the UK is nowhere near a house-price bubble and the Bank of England has tools to prevent it, amid growing concerns that government support for home-buying is stoking another boom. If there’s another bubble, the Bank of England and the government “have means by which we can anticipate that and make sure it doesn’t happen again,” Mr Clegg told the BBC. 
 
 An increase in the value of your home is good news if you are a home-owner. House prices in the UK have stagnated, with some decreasing in value, since 2008. 
 
A false house price increase, stoked by a boom in the housing industry though, is bad news. In the past it meant that banks had expensive mortgages on properties that had reduced in value. 
 
This shortfall hit the banking industry in Spain and that economy has yet to recover.
 
The UK and US can pinpoint there financial woes to the banking sector, and housing industry. 
 
Getting a mortgage in the UK has been difficult since 2008 but this weekend Santander announced that it was offering a raft of new deals to open up the mortgage market. 
 
More good news but what about a possible housing bubble? Monday the Guardian reports: 
 
A leading estate agent has tripled its forecast for house price rises in 2013, stoking fears of a destabilising house price bubble. 
Online estate agent Rightmove has raised its 2013 house price forecast for the third time this year to more than double the rate of inflation. The chain expects the average property price to increase by 6% this year, up from the 4% it predicted just two months ago. At the start of the year it predicted prices would rise by 2%
On Wednesday the Bank of England's financial policy committee will meet to discuss the possibility of a property bubble, and what remedial measures can be taken. 
 
Calls for that committee to cap annual house price growth in the UK at 5% a year illustrate concerns about a housing bubble which could quickly form and rapidly burst. According to the Independent
 
 Britain’s leading chartered surveyors have made an unprecedented call for the Bank of England to put a cap on annual house price inflation in order to avoid a “dangerous” debt bubble. 
 
Surely, however, this will hit confidence in the UK housing market and deter those who buy property as an investment? 
 
With a north south divide in the UK house prices are already a hotch-potch across the country.

Read more: http://www.digitaljournal.com/article/358436#ixzz2f7dQ2Rsn

Tuesday, 3 September 2013

New Loan Scheme Aims to Bring Empty Homes Back Into Use

This engaging article by The Independent on September 2nd, 2013 reveals a new loan scheme that intends to assist the country's housing shortage by giving affordable loans to owners of empty properties.

A new scheme hopes to help solve the country’s housing shortage by handing cheap loans to owners of Britain’s 710,000 empty properties.

The cash – up to £15,000 per property – will be offered to help with renovations through a new Government-backed £3m National Homes Empty Loan Fund, which has been set up following last year’s Great British Property Scandal campaign by architect George Clarke.

It will be administered by green lender the Ecology building society in conjunction with the Empty Homes charity and 39 local authorities.

David Ireland, chief executive of Empty Homes, said: “Many homes are empty because it is difficult for owners to raise the money needed to bring them back up to a habitable standard. The scheme will kick-start efforts to tackle this.”

The loans will be charged at a fixed 5 per cent and are available to those who own a property that has been empty for six months or more.

Ecology chief Paul Ellis said: “At a time when there is increasing demand for homes but an acute lack of supply, it makes sense to bring new life to existing but neglected properties.”

Article Source: http://www.independent.co.uk/property/house-and-home/property/new-loan-scheme-aims-to-bring-empty-homes-back-into-use-8794322.html