This issue can be dealt with quite simply - if the Government had the will to do so and were prepared to upset a percentage of private Landlords, the majority of whom are not the Rackmann type portrayed in the media.
Firstly, all private landlords should be registered with the Local Authority that they rent their property in. If it means registering with 20 Authorities, then so be it.
Secondly, a jointly agreed 'rent control' is introduced - based on a maximum of current market rent. That rent should increase at no more than CPI + 1% pa.
All private landlords with 10 or more properties should make at least 25% of their portfolio available at Social Rent prices with nominations purely from the relevant Local Authority. This to include tenants on full housing benefit.
A local 'Rental Income Tax' should be introduced (no more than 10% of yield on each property) to help fund and monitor the private landlords Register.
50% of all Private Landlord's portfolio should be on a new 5-10 year lease to give renters some kind of stability should they want it
To support the Landlord, the ability to set up 'starter tenancies' with early get out clauses to ensure there is some suitable control of tenants behaviour.
An easier process to evict residents who either commit ASB or are more than three months behind with their rental payments.
Why is owning such a common aspiration? I understand these days with rents so high but it is an aspiration that has gripped more and more people since right to buy your council house was first encouraged and seems to have gotten an ever tighter grip of people.
Why is owning such a common aspiration? I understand these days with rents so high but it is an aspiration that has gripped more and more people since right to buy your council house was first encouraged and seems to have gotten an ever tighter grip of people.
Independence and a desire to pass something onto your children.
Sorry to disappoint but London property price inflation, especially central London is a factor of: 1) real interest rates halving in the 90s - Asia financial crisis leading to lower interest rates 2) institutional policy failure in the western world pre crash 3) And not many lessons learnt after! 4) annuities and government bonds paying sweet fa and now 0% real interest rates making assets like property very attractive ~ globally 5) no government investment in building so a shortage of houses... More property inflation...understandable in the US, Spain and Ireland where there is still surplus property but not London and the South east. 6) London is booming and a place everyone wants to be
London and South east is the one place that can fund building off plan and our economy needs jobs and affordable housing. And our government needs to stop paying inflated housing benefit to landlords because of the accommodation shortage. So why not use that money to build houses and flats and improve transport links? Our economy has low interest rates for the foreseeable and councils and government should invest / build as long as they can get some money back through sales and rents.
We have a chance to vote in six months - I suggest people vote for candidates offering more building and more affordable housing...and the parties offering to place additional tax on property worth in excess of £2m. There are two of them to choose from and it's not the Tories nor UKIP.
( many of the points above come from an FT journalist who has written a book on the crash)
We have a chance to vote in six months - I suggest people vote for candidates offering more building and more affordable housing.... There are two of them to choose from and it's not the Tories nor UKIP.
100,000 starter homes will be built and offered to first-time buyers under the age of 40 at a discount of 20% if the Conservatives were to win the next election.
The discount will be made possible by exempting the homes from the zero-carbon homes standard and section 106 agreements, which oblige developers to build social housing as part of other development projects. The homes would also be built on brownfield land.
That should help free up some more affordable housing.
It means nothing other than the next place you buy will cost even more. Unless you plan on selling. Making 55 grand and moving into a caravanoverseas mortgage free.
Recent research by The National Housing Federation shows that:
•In 20 London boroughs, houses “earned” more than the average nurse’s pay of £35,316. •In 17 London boroughs, houses “earned” more than police officers do on average (£45,653) •Across London, average house prices rose by £57,278 in a year, more than the average chartered accountant’s salary of £55,372 •And in two boroughs, Kensington and Chelsea and the City of Westminster, average house prices rose by more than the Prime Minister’s salary (£142,000, for those who are keeping score).
Pretty persuasive argument for a mansion tax wouldn't you think ?
It means nothing other than the next place you buy will cost even more. Unless you plan on selling. Making 55 grand and moving into a caravanoverseas mortgage free.
My place has increased similarly. Shame I don't fancy moving up North - the market's remained stagnant up there while my place has been increasing. It is quite breathtaking to see what I could swap my moderately-sized 2 bedroom flat for if I was willing to move to more primitive surroundings.
A big problem is that many of the overseas buyers don't live in the property and don't even let it. London property is seen as a safe place to put your savings.
One thing that can be done is for council tax reform. The bands have been the same since 1991. The top band is for properties over £320,000, so studios in some parts of the London pay the same as Hyde Park mansions.
This is much better than a mansion tax with an arbitary cut-off point.
According to Zoopla (not to be believed) I'm rolling in money. But me and my wife will have to pop our clogs before anyone gets a sniff of any perceived profit.
Recent research by The National Housing Federation shows that:
•In 20 London boroughs, houses “earned” more than the average nurse’s pay of £35,316. •In 17 London boroughs, houses “earned” more than police officers do on average (£45,653) •Across London, average house prices rose by £57,278 in a year, more than the average chartered accountant’s salary of £55,372 •And in two boroughs, Kensington and Chelsea and the City of Westminster, average house prices rose by more than the Prime Minister’s salary (£142,000, for those who are keeping score).
Pretty persuasive argument for a mansion tax wouldn't you think ?
So there you are in your modest 3 bed house you and your family have lived in for 40 years. You scrimped and saved with your partner to pay the £3,000 asking price in 1974.
Your family has left home and you're living on limited pension income - but you've become asset rich as your modest home is now worth £2m. Suddenly, the incoming government stuff you with a 1% "mansion tax" and you have to find £20k pa.
And people moan about the extra £16 a week some people are having to pay on their spare room subsidy!
Recent research by The National Housing Federation shows that:
•In 20 London boroughs, houses “earned” more than the average nurse’s pay of £35,316. •In 17 London boroughs, houses “earned” more than police officers do on average (£45,653) •Across London, average house prices rose by £57,278 in a year, more than the average chartered accountant’s salary of £55,372 •And in two boroughs, Kensington and Chelsea and the City of Westminster, average house prices rose by more than the Prime Minister’s salary (£142,000, for those who are keeping score).
Pretty persuasive argument for a mansion tax wouldn't you think ?
The homes under the hammer analogy is an interesting one. Entrepreneurialism is encouraged and encouraging but when you see these cowboys tosh up a 2 up 2 down in a shit part of rochester and then ask for the rents they do it makes me choke!
But because I'm on the other side of the fence I really can't get my head round those that have 4/5 properties. For me that is too many, regardless if that is their income. I don't know, just doesn't sit with me well.
Perhaps we should set limits on how many children people are allowed to have as well as how many properties they can buy - and tax windows.
Bit flippant considering I don't want this to become a vilification of all landlords, just pointing out that if you are a wannabe first time buyer like me, seems unfair that others can own 4/5 properties.
It's not going to change and will probably get worse.
A big problem is that many of the overseas buyers don't live in the property and don't even let it. London property is seen as a safe place to put your savings.
Why is owning such a common aspiration? I understand these days with rents so high but it is an aspiration that has gripped more and more people since right to buy your council house was first encouraged and seems to have gotten an ever tighter grip of people.
Not being at the mercy of shit landlords who do the bare minimum of maintenance, raise the rent by huge amounts each year, and then kick you out at short notice. It's enough of a pain in the arse when you're young and single, but once you've got kids you need stability, rather than having to worry about finding an affordable place to live that's near their school(s) or finding them new school places where you've ended up having to move to.
Bit flippant considering I don't want this to become a vilification of all landlords, just pointing out that if you are a wannabe first time buyer like me, seems unfair that others can own 4/5 properties.
It's not going to change and will probably get worse.
Work hard, save up and you can buy a house. Nothing unfair about someone owning 4 or 5 properties just like not unfair someone have 3 or 4 cars.
Bit flippant considering I don't want this to become a vilification of all landlords, just pointing out that if you are a wannabe first time buyer like me, seems unfair that others can own 4/5 properties.
It's not going to change and will probably get worse.
Work hard, save up and you can buy a house. Nothing unfair about someone owning 4 or 5 properties just like not unfair someone have 3 or 4 cars.
except there isn't (in relative terms to houses) a finite number of cars that you can produce.
Bit flippant considering I don't want this to become a vilification of all landlords, just pointing out that if you are a wannabe first time buyer like me, seems unfair that others can own 4/5 properties.
It's not going to change and will probably get worse.
Work hard, save up and you can buy a house.
I did that.
I bought my house in 1985. I left to go to Prague in 1993. Fortunately I kept the house.
When I left, having worked hard, I was on a very decent salary. So I had what was a decent house (3 bed modern terrace)
20 years later I have established that the typical salary now for the job I was doing then has risen 33%.
Yet the value of my house has risen by 430%!!!!!
How could someone in their mid 30's, possibly afford even my modest 3 bed town house, in need of modernisation, now?
They are going to do a bit more than just "work hard and save up", aren't they?
Honestly, I watch it from afar, thankful I never sold the thing, but bewildered by how people are expected to live in London now.
28 years old, smack bang on the average London wage, work day in day out, saves as much as possible, with partner and child with absolutely no chance of buying a house in the area i've called home.... knowing that the developed areas are being whoremongered by foreign investors or glorified buy to let money grabbers homes under the hammer style, please drop me out!!!!
So there you are in your modest 3 bed house you and your family have lived in for 40 years. You scrimped and saved with your partner to pay the £3,000 asking price in 1974.
Your family has left home and you're living on limited pension income - but you've become asset rich as your modest home is now worth £2m. Suddenly, the incoming government stuff you with a 1% "mansion tax" and you have to find £20k pa.
And people moan about the extra £16 a week some people are having to pay on their spare room subsidy!
your "modest home" which cost £3k in 1974 is worth £2m ???? You made a pretty shrewd choice of where to buy ! Where are you living ? My modest house in Charlton which cost £19k in 1979 is worth about £550k.
Anyway, whatever it is now worth you (and I) have become asset rich by doing nothing while people working today in London can only dream of buying. So we would have to release some of that value to pay the tax which could be used to fund affordable housing. It doesn't have to come out of income.
Recent research by The National Housing Federation shows that:
•In 20 London boroughs, houses “earned” more than the average nurse’s pay of £35,316. •In 17 London boroughs, houses “earned” more than police officers do on average (£45,653) •Across London, average house prices rose by £57,278 in a year, more than the average chartered accountant’s salary of £55,372 •And in two boroughs, Kensington and Chelsea and the City of Westminster, average house prices rose by more than the Prime Minister’s salary (£142,000, for those who are keeping score).
Pretty persuasive argument for a mansion tax wouldn't you think ?
So there you are in your modest 3 bed house you and your family have lived in for 40 years. You scrimped and saved with your partner to pay the £3,000 asking price in 1974.
Your family has left home and you're living on limited pension income - but you've become asset rich as your modest home is now worth £2m. Suddenly, the incoming government stuff you with a 1% "mansion tax" and you have to find £20k pa.
And people moan about the extra £16 a week some people are having to pay on their spare room subsidy!
If you are in a "modest" 3 bedroom house worth £2m and you have no issues over getting to work or worrying about schools (as per your example) you can easily move a fairly short distance to a nice area and find similar for £1m to £1.5m. Mind you, then there's the dilemma what to do with that £500k in the bank... ;-)
If you are on a tight budget, paying a fortune to get to work each day, have to worry about your younger kids access to their current school and your eldest moves out leaving you subject to bedroom tax, it's a tad tougher I think?
In any event, what relevance does it have to the housing crisis? Each house is owned by someone and they are under no obligation to live in it. It can't just be taken off the owner and given to someone else.
What we have to do is to disincentivise people from holding empty homes (and indeed second homes).
Expand council tax bands Double council tax for any house left empty for more than six months. Triple if lefet empty for more than 12. Double council tax for second homes.
Comments
Firstly, all private landlords should be registered with the Local Authority that they rent their property in. If it means registering with 20 Authorities, then so be it.
Secondly, a jointly agreed 'rent control' is introduced - based on a maximum of current market rent. That rent should increase at no more than CPI + 1% pa.
All private landlords with 10 or more properties should make at least 25% of their portfolio available at Social Rent prices with nominations purely from the relevant Local Authority. This to include tenants on full housing benefit.
A local 'Rental Income Tax' should be introduced (no more than 10% of yield on each property) to help fund and monitor the private landlords Register.
50% of all Private Landlord's portfolio should be on a new 5-10 year lease to give renters some kind of stability should they want it
To support the Landlord, the ability to set up 'starter tenancies' with early get out clauses to ensure there is some suitable control of tenants behaviour.
An easier process to evict residents who either commit ASB or are more than three months behind with their rental payments.
That'll do for starters.
1) real interest rates halving in the 90s - Asia financial crisis leading to lower interest rates
2) institutional policy failure in the western world pre crash
3) And not many lessons learnt after!
4) annuities and government bonds paying sweet fa and now 0% real interest rates making assets like property very attractive ~ globally
5) no government investment in building so a shortage of houses... More property inflation...understandable in the US, Spain and Ireland where there is still surplus property but not London and the South east.
6) London is booming and a place everyone wants to be
London and South east is the one place that can fund building off plan and our economy needs jobs and affordable housing. And our government needs to stop paying inflated housing benefit to landlords because of the accommodation shortage. So why not use that money to build houses and flats and improve transport links?
Our economy has low interest rates for the foreseeable and councils and government should invest / build as long as they can get some money back through sales and rents.
We have a chance to vote in six months - I suggest people vote for candidates offering more building and more affordable housing...and the parties offering to place additional tax on property worth in excess of £2m. There are two of them to choose from and it's not the Tories nor UKIP.
( many of the points above come from an FT journalist who has written a book on the crash)
These people from Hong Kong, China, et al that have access to buy these houses and rent them out, presumably don't pay tax on the income generated.
That can't be right
The discount will be made possible by exempting the homes from the zero-carbon homes standard and section 106 agreements, which oblige developers to build social housing as part of other development projects. The homes would also be built on brownfield land.
That should help free up some more affordable housing.
With the money you make from selling up in London, you could still afford a commute back to watch the Addicks...
•In 20 London boroughs, houses “earned” more than the average nurse’s pay of £35,316.
•In 17 London boroughs, houses “earned” more than police officers do on average (£45,653)
•Across London, average house prices rose by £57,278 in a year, more than the average chartered accountant’s salary of £55,372
•And in two boroughs, Kensington and Chelsea and the City of Westminster, average house prices rose by more than the Prime Minister’s salary (£142,000, for those who are keeping score).
Pretty persuasive argument for a mansion tax wouldn't you think ?
One thing that can be done is for council tax reform. The bands have been the same since 1991. The top band is for properties over £320,000, so studios in some parts of the London pay the same as Hyde Park mansions.
This is much better than a mansion tax with an arbitary cut-off point.
Your family has left home and you're living on limited pension income - but you've become asset rich as your modest home is now worth £2m. Suddenly, the incoming government stuff you with a 1% "mansion tax" and you have to find £20k pa.
And people moan about the extra £16 a week some people are having to pay on their spare room subsidy!
It's not going to change and will probably get worse.
Bit flippant considering I don't want this to become a vilification of all landlords, just pointing out that if you are a wannabe first time buyer like me, seems unfair that others can own 4/5 properties.
It's not going to change and will probably get worse.
Work hard, save up and you can buy a house.
Nothing unfair about someone owning 4 or 5 properties just like not unfair someone have 3 or 4 cars.
It's not going to change and will probably get worse.
Work hard, save up and you can buy a house.
Nothing unfair about someone owning 4 or 5 properties just like not unfair someone have 3 or 4 cars.
except there isn't (in relative terms to houses) a finite number of cars that you can produce.
It's not going to change and will probably get worse.
Work hard, save up and you can buy a house.
I did that.
I bought my house in 1985. I left to go to Prague in 1993. Fortunately I kept the house.
When I left, having worked hard, I was on a very decent salary. So I had what was a decent house (3 bed modern terrace)
20 years later I have established that the typical salary now for the job I was doing then has risen 33%.
Yet the value of my house has risen by 430%!!!!!
How could someone in their mid 30's, possibly afford even my modest 3 bed town house, in need of modernisation, now?
They are going to do a bit more than just "work hard and save up", aren't they?
Honestly, I watch it from afar, thankful I never sold the thing, but bewildered by how people are expected to live in London now.
I certainly do not deem that fair!!
So there you are in your modest 3 bed house you and your family have lived in for 40 years. You scrimped and saved with your partner to pay the £3,000 asking price in 1974.
Your family has left home and you're living on limited pension income - but you've become asset rich as your modest home is now worth £2m. Suddenly, the incoming government stuff you with a 1% "mansion tax" and you have to find £20k pa.
And people moan about the extra £16 a week some people are having to pay on their spare room subsidy!
your "modest home" which cost £3k in 1974 is worth £2m ???? You made a pretty shrewd choice of where to buy ! Where are you living ? My modest house in Charlton which cost £19k in 1979 is worth about £550k.
Anyway, whatever it is now worth you (and I) have become asset rich by doing nothing while people working today in London can only dream of buying. So we would have to release some of that value to pay the tax which could be used to fund affordable housing. It doesn't have to come out of income.
If you are on a tight budget, paying a fortune to get to work each day, have to worry about your younger kids access to their current school and your eldest moves out leaving you subject to bedroom tax, it's a tad tougher I think?
preferential interest rates for first time buyers?
tax/surcharge foreign owners/investors ?
build more properties?
control immigration/population ?
https://www.gov.uk/government/statistics/council-taxbase-2014-in-england
In any event, what relevance does it have to the housing crisis? Each house is owned by someone and they are under no obligation to live in it. It can't just be taken off the owner and given to someone else.
What we have to do is to disincentivise people from holding empty homes (and indeed second homes).
Expand council tax bands
Double council tax for any house left empty for more than six months. Triple if lefet empty for more than 12.
Double council tax for second homes.