Simon Says...
Stuff I think of...
Friday, February 28, 2025
Zelensky vs POTUS
Friday, February 21, 2025
Ukraine vs. US (Wasn't that supposed to be USSR?)
Saturday, February 15, 2025
One and a half million homes!!
th February)UK House Building
This morning (Sunday the Labour Deputy Prime Minister Angela Raynor has re iterated the governments drive to build 1.5 million homes before the next general election, The interview can seen here for the next few months on BBC iPlayer. I don't intend to spend any time on the what was said. What was said was pretty much what the government wanted us to hear. Go check it out for yourselves. What I do want to do is provide a little context to the debate.
The concern among many commentators is that, currently, the next generation of home owners have been priced out of the market and that the current "business model" for home ownership and for personal savings etc is building on feet of clay. The pitfall being that without a constant supply of first time buyers eventually all the home owners will die off and with the laws of supply and demand so will the housing prices. This in turn will affect those who have taken out mortgages that require paying back up 3 times what was borrowed in the first place. They will have borrowed on the basis of constantly rising house prices and that they would get some kind of return on their payments. If that is not the case the whole concept of banking in this country could be thrown into turmoil as mortgages will become deeply unattractive.
There are many reasons that house prices have risen the way they have. But London is the focal point or epicentre. House prices in London have been going of the charts since the 1970's at the very least. probably longer. People, mostly the middle classes have been moving to the suburbs since the 1920's and so called "new towns" like Basingstoke and Milton Keynes have been developed in the post WW2 period.
I blame this nations and London's move to being a financial services led economy. London always was an important banking centre but since Thatch in the 80's and the so called big bang.
I dont want this blog post to get anymore turgid than it needs to be so I will sum up
The reason the Government is going to fail is not that it lacks ambition or even wont be because it can or can't effect changes in planning law.
It will be because builders are building the wrong type of houses.
It's not their fault. Housebuilders are all in the same financial straightjacket we all are. The houses that make the most money are the up market detached houses. Executive housing for want of a better word. Too expensive to new buyers. Also much less dense housing that starter homes.
An estate of typical starter homes would be limited to 20/21 houses an acre. Executive houses fit about 5/6 houses per acre. So a third as dense. No matter how much extra land the Government gets to release to builders, the builders will most likely only stick on much more profitable larger houses. Therefore the situation will not improve as the new houses will still be out of reach of new buyers
I know developments by and large are forced to create 10% of their estates as affordable homes but is that enough?
Instead of changing planning laws, for instance, Would the government be better served to force t construction industry to build only affordable housing? Like when councils used to do it?