Does anybody think that there might be a boom in new builds for the next few years?

[Brigade77]

Dork is a private landlord with very many properties & much considerable wealth.

Dork is also very skool'd in economics, almost to PhD level if he'd bothered to take the exams.

Dork the Landlord would dearly like to offer his opinion on "how to solve the housing crisis", but Dork the Economist prevents him doing this.

Dork will throw caution to the wind & offer his qualified opinion, the answer is "BUILD MORE HOUSES".

Dork the Economist is waiting for your thoughts on exactly how you going to achieve that.

 

[Notch7]

Is any party even suggesting it?

No.

it’s a hot potato.

middle aged homeowners don’t want their over valued houses dropping in value….upset them, you lose loads of votes.

until generation rent outstrips home owners, it’s not a political winner.

 

[Captain Nemesis]

The assets of every generation eventually have to be sold to the next.

 

[Notch7]

The assets of every generation eventually have to be sold to the next.

not with care home fees, equity release etc.

 

[Brigade77]

"Generation Rent" is one great big MAHOOSIVE problem that will only enter a non economists mind shortly before it hits.

We have an unsustainable grouping of people who society can never afford to retire.

They don't have pensions & they don't have savings. When they retire, society will have to foot the bill for their extortionate rent as well as pay them a pittance to live on. We can't even afford their pittance of a pension.

I'm glad I won't be around to witness that one hit the economy.

 

[ReganAndCarter]

Because the UK has not enough housing stock do you think there's likely to be some kind of "new build" building boom starting once the effects of the pandemic have subsided (Hoping they do continue to do so)

Good evening, Teaboy. Yes, there will be a house building boom - as house builders are bunging, sorry donating millions to Tory coffers. Bloor Homes, for example.

 

[sxturbo]

Some.of generation rent is because they don't want to lose there nice Cars, fancy clothes and nice holidays to save up for a deposit.

Take all that away and a year or 2 of saving would get you a house deposit.

But that's to long for those entitled and have to have everything straight away

 

[Notch7]

Some.of generation rent is because they don't want to lose there nice Cars, fancy clothes and nice holidays to save up for a deposit.

Take all that away and a year or 2 of saving would get you a house deposit.

But that's to long for those entitled and have to have everything straight away

Many people are suffering in work poverty due to rental costs eating their monthly wage.

 

[JohnD]

Some.of generation rent is because they don't want to lose there nice Cars, fancy clothes and nice holidays to save up for a deposit.

Take all that away and a year or 2 of saving would get you a house deposit.

But that's to long for those entitled and have to have everything straight away

That's an interesting (false) opinion.

When you bought your first house, what multiple of average earnings was average house price?

What is it now?

 

[Bodd]

Many people are suffering in work poverty due to rental costs eating their monthly wage.

I think your both right... it's all about Priorities, but I feel for all the youngsters trying to get their foot in...

 

[JohnD]

When I bought my first house, I could only afford a run-down terraced house, in a shabby part of town, half an hour's walk from the station.

In those days you could get (IIRC) a mortgage of 2.5 times first income plus 1 times second income. We just managed it with good savings, on a young man's City wage plus a junior nurse's pay.

I just checked, and terraced houses in that street now sell for £400,00 to average £510,000. It is still a shabby part of town. Average earnings are now £30,000

Tell me you think a young couple could afford one by cutting down on coffee and avocados.

Going back to when you were young, the average house has gone up more than 65 times, but average earnings only 36 times. And many young people can't get a permanent job, thanks to the gig economy and zero-hours contracts. Try getting a mortgage on that.

https://www.newstatesman.com/politics/2021/05/how-uk-house-prices-have-soared-ahead-average-wages

 

[JP_]

there's quite a few big housing projects planned for my local area, that were initially supposed to be build by 2022, so I reckon there will be a big push soon as they must be over a year behind schedule by now.

House prices - I am really worried for my kids. It seems impossible to get a good home now. I bought my first flat in Walthamstow in 1999 for £56k, with a 100% mortgage based on 3 times my salary. Salaries for youngsters does not seem to have gone up a great deal in the last 20 years - college leavers still getting paid around £20k. Even a graduate on £30k is only going to be able to borrow £90k, which won't by a bedsit within 100 miles.

Of course, all these public-private partnerships and housing schemes are making some people very rich.

 

[Diver Fred]

I find it interesting as this conversation evolves.
I've been a landlord of 1 or 2 properties for 40 years now. I've never had a problem with finding tenants when it's been known that a house is coming free I've usually had prospective tenants 'queuing at my door'. In the immediate area of my rental property in those 40 years I've the number of houses let decrease by around 80% before increasing to about 50% of what is was when I started out. Of those let houses in the 1980's it was a fairly even split between council, private lets and a few tied cottages. Of the council lets today 5 remain in council hands (out of 24) and it is pretty obvious which those are due to the poor maintenance of the properties. 4 of the council houses had the gardens reduced for the council to build old peoples bungalows on so that seniors could move out of their council houses into smaller properties freeing up the council houses for those families with children - the people the council wanted to move refused and in the end out of 6 bungalows 3 are occupied by youngsters, 2 by people moving from tied houses and one who did move from their council house but that person was forced to as he had never paid any rent.
All bar one of the tied cottages have been sold off, the largest pair knocked into one; of the remainder, 3 have been knocked down and one house built in it's place.
Private lets, as is mine have seen the biggest increase; houses of all ages, older houses refurbished, new houses bought in the main by people wanting to live or retire in the village, have been lived in by the owners for a period but have been moved by their employment but to retain a foothold in the area have themselves moved into rented properties. As I did when when my career moved me.
Just taking a quick review of the numbers of let houses in the village I can say that the houses let from 1 bed cottages to a couple of 5 bed houses.
As for 'Generation Rent' I'd say there are less people renting today than what there was 40 years ago but what doesn't help is the change from the majority let property maintenance moving from the tenant to the landlord. When I set out as a landlord my responsibilities was buildings insurance, exterior decoration and repairs to plumbing or electrics. Everything else was the tenants responsibility. Today my costs have increased substantially but my rent has not mirrored that increase particularly with the government imposed requirements. Ball park figure is that I'm receiving 3 times the rent and have 4 times the costs. I'm even having to pay for garden maintenance not particularly my choice but because I want to maintain the area looks and standards.
The government imposed changes (EPC grades from none to 'E' to 'C" in 2025) will reduce the rental stock considerably as many landlords cannot afford the work - I'm certainly out of the rental business by 2023 due entirely being unable to fund those costs (£13500).

 

[IT Minion]

House building in the UK over time: https://fullfact.org/economy/house-building-england/

Short version, we have built large numbers of houses in the past, proportionally massively larger numbers, but we have been slacking off for 40 years or more

 

[sxturbo]

That's an interesting (false) opinion.

When you bought your first house, what multiple of average earnings was average house price?

What is it now?

No idea, but it was only a few years ago,


Think it was 10 times our earnings.

There was no 95% or 100% mortgages offered,

We bought our first house after the banking collapse and had the added stress tests done on our finances, not many banks were offering 1st time mortgages at this time.

Ive never really earned much more than the average wage and wife is the same.

Neither of us come from wealthy families in fact both families have always struggled financially, though my parents are now ok.

I never had help ever from anything financial and would never expect it.

My first house required a 20k deposit and 5kish for solicitors fees. Which isn't to far out of the current market.
For this I saved up and we sold our cars and bought 1 cheap one between us, the money gained went towards the house, this gave us the first 12k,

At the time I was earning 24k and my wife 18k 5 years ago.

All furniture was either stuff we already had or.bought through Facebook and eBay of which we've only just started replacing as we decorate each room in our new house

I'm not as old as you think I may be, so I know exactly how hard it is to get the money together. All my friends have done the same thing over time.

The prices in London you allude to a bit of a special case and are definitely not the norm.

I do concur though that house prices cannot continue there upward Trend against wage rise as there will be a point where it becomes unviable. But even homeowners need first time buyers otherwise the market will go stale.



We're in a bit of a housing boom at the moment because people have been forced to save as they haven't been able to go out or go on holiday..