Forum Topic

There may be some other nations that restrict property ownership to citizens but not economically successful ones. It is a fallacy to think that foreign ownership is a significant cause of the housing shortage in fact the opposite is probably true. Ultimately foreigners buying property here is a capital investment and our balance of payments is very dependent on this inflow. All the complaints about Hong Kong and Singaporean individuals buying flats as investment ignore the fact that without such investment the flats may not have been built. Because of the restrictions on mortgages and the reduced incentives domestic buying interest is much reduced. If you took away foreign buying there would be fewer flats built and an even more acute housing shortage.It also needs to be reiterated that there is no evidence that foreign buyers are more likely to leave a property empty than domestic ones. A Commons Select Committee published a report on this matter and it showed that the 'void' rates for flats were much the same regardless of ownership. This confirms what common sense would have told us anyway - why on earth would an investor buy a flat and not put a tenant in it as getting a yield on their investment is the whole point?Blaming foreigners for our housing problems is hitting the wrong target. Restrictions on foreign inward investment would also have a significantly negative impact on trade negotiations with all these countries we expect to be doing lots of business with after Brexit.

Andy Jones ● 2921d

Thanks for those links Libby. They increased my understanding of the issue.I would not dispute that residents should always be properly consulted. This shouldn't extend to giving them a veto on any plans but there should be a guarantee that all existing tenants are rehoused in accommodation which is as good as or better than their current home. For those with family houses, it may not be possible to do so in the local area as most of these developments increase density to maximise the number of units built. Many of my friends and neighbours have been forced to move out of the area as their family got larger due to cost and I don't think we can guarantee that social housing tenants be immune to the same pressures.I would agree that it is wrong if new developments are leading to an overall loss in social housing units but if it is just the case the proportion is falling then that would be fine. It is also true to say that 'affordable' housing, as currently defined is in no way a substitute for social housing. Personally I think we should scrap the concept altogether.Subject no social housing being lost, I don't see how you can argue that these developments are not a good thing. Thousands of new homes are being built reducing upward pressure on prices. The Council saves a huge amount of money on having to rebuild existing stock and ongoing maintenance and repair costs. The new units are cheaper to maintain, more environmentally friendly and safer. Tenants get improved accommodation. It seems to me these arrangements are attracting the level of criticism that they do for internal party political reasons rather than concern for social housing tenants who in my, admittedly limited, experience are generally delighted with their new homes.

Andy Jones ● 2924d

Council housing is not subsidised, it pays for itself over 25 to 30 years, and thereafter makes a profit for the council. House owners still enjoy capital gains tax relief, currently worth almost £6bn. Those with no or only small mortgages also benefit from not being taxed on the value of their home. This tax relief is now valued at over £11bn. Pooling these benefits and adding back in the stamp duty and inheritance tax of approximately £5bn that owners do pay, the net subsidy received is still a surprising £12bn per year.Owners in difficulty also receive support with mortgage payments. All governments have provided subsidy to shared ownership, as a first step on the ladder, and about 170,000 homes have been built on this basis alone. The biggest subsidy of all (for the individual households who have benefitted) has been the right-to-buy, offering 2m buyers a typical discount of £26,000. The UK Housing Review gives the total value of these subsidies as £1.6bn for the year 2009/10 – and in the recent past they have been even higher.Owners in difficulty also receive support with mortgage payments. All governments have provided subsidy to shared ownership, as a first step on the ladder, and about 170,000 homes have been built on this basis alone. The biggest subsidy of all (for the individual households who have benefitted) has been the right-to-buy, offering 2m buyers a typical discount of £26,000. The UK Housing Review gives the total value of these subsidies as £1.6bn for the year 2009/10 – and in the recent past they have been even higher.

Libby Kemp ● 2928d

You DO need to look further than the local administration.  You need to look at what other boroughs are managing to do with the slashing of budgets.  That does not mean that this administration is anything like good let alone perfect.Gordon Brown was NOT responsible for the world recession in fact he has been credited with helping to ameliorate the effect of it!  There is also an increasing older population - pensions and care were not designed for people living so long.  There was a 105 year old woman on the radio the other day who is still driving and certainly does not sound older than an 80 year old (whatever that sounds like) so say she retired at 60 that is 45+ years of pension!  Unfortunately our political parties pussyfoot around and pander to their electorate not wanting to lose voters.  Years and years ago they ALL should have seen what was happening and reorganised tax and NI to ameliorate any shortfall.  The relationship of Councils with the big developers is worrying and legislation too vague and unworkable.  Councils too easily even when "affordable" housing was included in planning permission later give way to developer claims that they won't make enough money if they include it and so manage to wriggle out of the provision. New developments have in some cases been only advertised for sale abroad and it is only recently that the mayors of London and Manchester have managed to get some promises that some developments will be advertised here and available for UK first time buyers first for a short amount of time.  There are many empty units.http://www.thisismoney.co.uk/money/mortgageshome/article-5353137/UK-buyers-dibs-London-new-builds-350k.htmlThere has been a lot of discussion of the meaning of "affordable" and who CAN actually afford this.  It most definitely is NOT the same as social housing.  Social housing is not being built or replaced at the rate that it needs to be and that is a big reason why we have a housing problem.  Working people cannot afford the rents being asked.The Right to Buy social housing unfortunately did not give the Councils the Right to Build replacement social housing or all the proceeds of the sale - which is why we can have the too close relationships with developers.  As Libby pointed out there are a lot of smaller flats but not a lot of family houses being built.

Philippa Bond ● 2928d