Failed housing policy?

[Berberis]

But the help to buy keeps the rises going, house prices will correct themselves when the time is right. Government interference is keeping prices high.

Within 5 years interest rates will increase, will those with a mortgage be ok with that.

 

No they wont. Prices have only gone in one direction over the period and moved more and more out of reach of first time buyers. Without first time buyers the whole housing market grinds to a halt.

 

---------- Post added 09-02-2017 at 12:04 ----------

 

It's nowhere near that simple. You might not like to compete with lower-skilled immigrants for work, but I guarantee you like a lot of the tax revenue they generate and the services they provide.

 

There were stats released that showing how EU and none EU immigrants contributed to the country by way of tax contributions. I remember EU nations where a net contributor but non were not. I can't remember where this was published but it was pretty hot news at the time.

[unbeliever]

 

There were stats released that showing how EU and none EU immigrants contributed to the country by way of tax contributions. I remember EU nations where a net contributor but non were not. I can't remember where this was published but it was pretty hot news at the time.

 

I'd be interested to see that data if you can recall where you found it.

[Berberis]

I'd be interested to see that data if you can recall where you found it.

 

Here you go.

 

New report shows immigration from outside Europe over the Labour government years cost the public purse billions of pounds, while recent migration from inside Europe generated a £4 billion surplus

 

http://www.telegraph.co.uk/news/uknews/immigration/11209234/Immigration-from-outside-Europe-cost-120-billion.html

 

Sorry its a Torygraph link.

[dangerousedd]

why would companies go on a massive building surge when such a move would drive down prices?

[El Cid]

There were stats released that showing how EU and none EU immigrants contributed to the country by way of tax contributions. I remember EU nations where a net contributor but non were not. I can't remember where this was published but it was pretty hot news at the time.

 

But they are a negative when it comes to housing.

 

---------- Post added 09-02-2017 at 13:27 ----------

 

why would companies go on a massive building surge when such a move would drive down prices?

 

They built many more houses in the 1960s, they should be able to do it again.

We are at historical low levels for building new houses.

 

Not sure about recent years.

 

http://www.economicshelp.org/blog/15814/housing/uk-housing-history/

[Berberis]

But they are a negative when it comes to housing.

 

Pressure on housing will always be there if we do not build enough to accommodate the work force. Forget about people coming to the UK and think about how many people are needed to work in our economy. UK birth rate is 1.9 live births per woman. It needs to be 2+ to grow a population.

 

The simple fact is, the UK does not build enough houses to sustain the requirement. The UK only builds on 10% of the land. Other countries, such as Germany for example build on 13% and their housing market is stable and sustainable with relatively cheap housing by our standards.

Edited February 9, 2017 by Berberis

[Ms Macbeth]

There are lots of housing issues outwith the 'market'. IMO, we need more social housing in selected parts of the U.K. However, I'd like to think priority should be for low and middle income working families.

 

People in 'ordinary' jobs can't afford to buy or rent near their jobs in London and other expensive parts of the U.K. We are fairly fortunate in South Yorkshire as there are properties for rent at reasonable rates. Similarly there are properties for sale comparatively cheaply.

 

There is a shortage of suitable properties for older downsizers. Many older people would like a smaller property, perhaps a bungalow or apartment, and in some cases with appropriate support. Even for the better off there are few options in some parts of the city for sale or rent. council Lettings policy only allows one bedroom for a couple who want or need social housing, although some housing associations are more flexible. So many families are scattered nowadays, a spare room isn't a luxury. I think it makes sense for older people who wish to sell up to have the option to rent. They would be financially independent, no housing benefit or council tax benefits required. They wouldn't have to worry about repairs and maintenance. They'd be able to pay for help at home if needed, and they'd be freeing up a family home.

 

Living in accessible and appropriate housing could also reduce bedblocking, as its one of the the main reasons older folk remain in hospital when they could be discharged.

[Berberis]

There are lots of housing issues outwith the 'market'. IMO, we need more social housing in selected parts of the U.K. However, I'd like to think priority should be for low and middle income working families.

 

People in 'ordinary' jobs can't afford to buy or rent near their jobs in London and other expensive parts of the U.K. We are fairly fortunate in South Yorkshire as there are properties for rent at reasonable rates. Similarly there are properties for sale comparatively cheaply.

 

There is a shortage of suitable properties for older downsizers. Many older people would like a smaller property, perhaps a bungalow or apartment, and in some cases with appropriate support. Even for the better off there are few options in some parts of the city for sale or rent. council Lettings policy only allows one bedroom for a couple who want or need social housing, although some housing associations are more flexible. So many families are scattered nowadays, a spare room isn't a luxury. I think it makes sense for older people who wish to sell up to have the option to rent. They would be financially independent, no housing benefit or council tax benefits required. They wouldn't have to worry about repairs and maintenance. They'd be able to pay for help at home if needed, and they'd be freeing up a family home.

 

Living in accessible and appropriate housing could also reduce bedblocking, as its one of the the main reasons older folk remain in hospital when they could be discharged.

 

Bungalows are less efficient on space for obvious reasons and this is why they appear to no longer be built.

[ez8004]

why would companies go on a massive building surge when such a move would drive down prices?

 

This is a point lost on many.

[unbeliever]

why would companies go on a massive building surge when such a move would drive down prices?

 

Selling 2 houses at a profit of £10000 each is better than selling one at a profit of £15000.

Just think about it. Where in the market do things actually work in the way you're suggesting?