Eight radical solutions to the housing crisis.

[chem1st]

lol nearly everyone can afford to buy a house as long as your willing to make a few sacrifices to save enough cash for a deposit.

 

Howcome home ownership has been in decline since 2002?

 

Howcome the private rented sector has increased massively since the 1980s?

 

Howcome we have a shortage of homes?

[Vague_Boy]

Then once they've got the deposit, take out a 95% mortgage repayable over 25 years that they stand a realistic chance of paying off rather than borrowing beyond their means to buy a house they can't afford.

Houses are unaffordable because of a decades long credit bubble.

 

Or was it just a coincidence that house prices stalled in 2007, at exactly the same time that the global credit taps were turned off?

 

None of this "they're not making any more land", "new paradigm", "it's different this time" or any of the other BS that was flying around.

 

The conclusion to be reached after 10 years of madcap lending is that house prices are not a function of demand, but are simply a function of how much money the lenders are willing to advance. Almost everything else is immaterial.

LINK [The Guardian, 10 August 2010]

 

Former Bank of England governor Eddie George has even admitted that the BoE deliberately fueled the credit expansion.

 

Ex-Governor George says Bank deliberately fuelled consumer boom

 

The Bank of England deliberately stoked the consumer boom that has led to record house prices and personal debt in order to avert a recession, the former Bank Governor Eddie George admitted yesterday.

LINK

 

"In order to avert a recession". Well that worked out well didn't it Georgie boy.

 

You can't even blame a shortage of housing.

 

One million homes in Britain are empty

 

House prices are too high for most people to afford in these credit crunch times. The answer is not more lending, that's what caused prices to become unaffordable in the first place, not to mention the effects on the banks.

 

The answer is to let the market set prices, free of government interference such as SMI and idiotically low interest rates.

 

It will be very painful for those who rent from the bank homeowners but there's simply no avoiding it. It will happen, they can kick the can down the road but eventually they will run out of road.

[chem1st]

Why dont we just ban private housing altogether. This could be the only truely fair option. There would be no arguments over us taxpayers subsidising cheap rents as we would reap the benefits too and people like Chem1st would be happy as there would be a state sponsored roof for everyone in the country.

 

I mean what could possibly go wrong.... That's would be wonderful wouldn't it......A little Sheffield Homes Communist Society.

 

Dwellings would be allocated to you by the council, repaired and maintained by the council, built and knocked down by the council who could move you around when they saw fit or when supply and demand changed because it would never be your home to argue over,

 

they could maintain them to whatever good or bad standard they like because there would be no alternatives, they could charge what they wanted because they would be no alternatives and surely no ghettos would develop because everyone would be in the same boat....... a new community for a new generation...... streets in the sky bringing communities together.... A completely mixed and diverse society all living on the same street or in the same block. What could possibly go wrong??

 

God I hope I go to meet my maker before that ever happened.

 

You might be taking the mickey, but your suggestion is a good one.

 

1000 hours of labour in a house back in the 1930s, even less today. That is half a years work at 40 hours a week.

 

Although if we were to do so, I'd suggest we bring back national service, but for men only (and women who wish to participate). 2 years of housebuilding and agricultural work to entitle one to housing, free travel etc.

 

Once we meet the basic needs of ALL people (shelter and food supply), then we can concentrate on other things. We can all work less, and live better lives.

[Flowersfade]

Howcome home ownership has been in decline since 2002?

 

Howcome the private rented sector has increased massively since the 1980s?

 

Howcome we have a shortage of homes?

 

Because people would much rather waste money on luxury items than save for a deposit etc.

 

Also they may rent as they wish to live in a certain area. Many areas such as Pitsmoor etc have cheaper housing available to buy.

There is no shortage.

[ECCOnoob]

You might be taking the mickey, but your suggestion is a good one.

 

1000 hours of labour in a house back in the 1930s, even less today. That is half a years work at 40 hours a week.

 

Although if we were to do so, I'd suggest we bring back national service, but for men only (and women who wish to participate). 2 years of housebuilding and agricultural work to entitle one to housing, free travel etc.

 

Once we meet the basic needs of ALL people (shelter and food supply), then we can concentrate on other things. We can all work less, and live better lives.

 

My god. How to drag civilisation backward. Never mind the decades of developements and evolutions in personal welfare, living standards, working world, technology, consumerism and lifestyle development. Never mind business and economy lets all go back into living like a self sufficient commune. The superpowers in the east would p**s themselves laughing at us.

 

If you ever become prime minister I really hope im worm food.

[chem1st]

My god. How to drag civilisation backward. Never mind the decades of developements and evolutions in personal welfare, living standards, working world, technology, consumerism and lifestyle development. Never mind business and economy lets all go back into living like a self sufficient commune. The superpowers in the east would p**s themselves laughing at us.

 

If you ever become prime minister I really hope im worm food.

 

You'd rather we throw more and more money and resources at purchasing houses with debt, living like slaves than at production and wealth creation?

[johncocker]

12. Send John Cocker back to school.

 

 

 

there you go with your lower middle class angst again:hihi:

untill some political party as got the guts to take on the major religions who encourage people to breed like rats and pay them for it you'll always have a houseing crisis .

 

that includes your lot the chosen ones.

 

you know the ones who wake up every morning and say "thank you god for not making me a woman":hihi:

[Ms Macbeth]

Howcome home ownership has been in decline since 2002?

 

Howcome the private rented sector has increased massively since the 1980s?

 

Howcome we have a shortage of homes?

 

IMO one of the reasons for the decline in home ownership has been the falling numbers of council house sales. These reduced for an obvious reason - most of the best ones in the most desirable areas got snapped up quickly! Its also worth remembering that in the 1980s people with mortgages got tax relief, and if they fell on hard times, got help in paying the mortgage. Nowadays, those who rent get much more help in terms of housing benefits than people with mortgages. Another reason for fewer people buying is the restriction on lending. I for one am glad that 105% & 110% mortgages are no longer available, they tempted people into buying what they really couldn't afford.

 

The private rented sector fulfils a lot of people's needs. Young professionals and students sharing houses and flats, young couples and families who want a choice where they live, but can't afford to buy in the area they want. I've had plenty of experience in my own family of the younger generation renting as they've moved around the country because of their careers. Only when they have settled down have they considered buying.

 

Also, there are people who are ineligible for social housing because they may only be in the UK for work or to study. Where would they live if there were no private rented properties? The increase in immigration has led to a rising need for rented properties, as contrary to some opinion most immigrants don't go to the front of the queue for council housing.

 

Although I agree there is a shortage of affordable rented homes, not everyone who rents wants social housing.

[MrSmith]

Howcome home ownership has been in decline since 2002?

 

Howcome the private rented sector has increased massively since the 1980s?

 

Howcome we have a shortage of homes?

 

Because buying a house is too expensive for first time buyers.

 

As housing became more expensive fewer people could buy, leaving a market for private rented properties. In affect the private landlords created their own market by targeting affordable housing and driving the prices up. Banks preferred to lend to landlords because it was a lower risk than lending to a first time buyer.

 

There isn't a shortage of homes but there is a shortage of desirable affordable homes. Fewer houses have been built whilst the population as expanded. The developers will keep supply low in order to keep prices high. Then there is a second, third holiday homes that are vacant for most of the year that prevent many locals in desirable areas from buying an affordable house.

[Cyclone]

You seemed to have missed the bit about funding the building of the hostels in the first place as someone will have to pay for them. I didn't say that affordable would make a difference.

 

Plus benefit claimants, as you already know, don't get charity they get benefits and may not get enough housing benefit to cover full rent costs.

 

No, you said what's needed is lots more affordable social housing.

Why does affordable matter if you're talking about people who won't be paying for it?

Charity is being given money that you haven't earned. Benefits are charity.