maddogdrivethru.net

Open all night
It is currently Thu Nov 21, 2019 4:36 am

All times are UTC - 5 hours [ DST ]


Forum rules


Harumpfh. English Gentlemen hardly need lectures on manners from some rabid colonial bumpkin



Post new topic Reply to topic  [ 5 posts ] 
Author Message
 Post subject: Britain’s Housing Crisis
PostPosted: Thu Jul 04, 2019 12:06 pm 
Offline
Sergeant Major
User avatar

Joined: Mon Sep 15, 2008 9:50 pm
Posts: 36448
Location: West coast of the east coast
Reputation points: 20000
https://www.city-journal.org/britains-housing-crisis

Quote:
EYE ON THE NEWS

Britain’s Housing Crisis

Homeowners in the U.K. are addicted to the shortage that drives up their property values.

Sam Watling
July 3, 2019 Economy, finance, and budgets

In 1951, Britain faced a housing crisis: not enough dwellings had been built to replace those destroyed by German bombs during World War II, partly because the Labour government’s restrictive system of urban planning had caused land and house prices to soar. Frustrated by this housing shortage, voters elected a Conservative government, under the leadership of Winston Churchill, that promised to make “housing a priority second only to national defense.” It was not clear whether Britain, on the verge of bankruptcy, could sustain a large increase in the rate of housebuilding. Nonetheless, the Conservatives promised to increase the number of houses built from 200,000 per year to at least 300,000.

Today, Britain faces a similarly severe housing shortage. The average price of a house has grown from £4,500 in 1970 to £226,800 today. In locales like London and Oxford, the average house, priced at more than £450,000, costs about 15 times the average wage. The young and the poor are priced out of homeownership. The most vulnerable are pushed into substandard accommodation, or, in the worst-case scenario, fall behind entirely and join the ever-growing ranks of homeless that shame Britain’s cities.

After taking office in 1951, Churchill’s government poured resources into housing and built 300,000 homes in nine months. Succeeding Churchill in 1955, Anthony Eden would be mainly known for his role in the Suez crisis, but under his leadership the Conservative Party also adopted the goal of a “property-owning democracy.” Increasing the number of homeowners became party policy, and it was continued by his successors, especially Margaret Thatcher, who began the process of selling Britain’s public-housing stock to its occupants.

As homeowners became the majority in Britain during the 1970s and 1980s, though, a strong political incentive emerged to ensure house-price inflation. High housing prices, once a sign of policy failure, became politically desirable. Local government bowed to NIMBY-ist demands to block new construction. No new towns were founded after the 1970s, and new public-housing construction had ceased by the 1980s. The government focused instead on tightening planning restrictions, making housebuilding impossible in much of the country.

The inevitable result of this constriction—an increasing scarcity of housing and spiraling prices—creates an existential crisis for today’s Conservatives. Property ownership is a core principle of Conservative ideology, and homeowners tend to vote Conservative. Yet homeownership among the young has collapsed. In the last election, these dispossessed young people turned to the hard-left Labour opposition. According to current polling, only 16 percent of voters under 35 would consider voting Conservative in the next election. If Conservatives are to appeal to the young, they must act to make housing affordable again.

Outgoing Prime Minister Theresa May has ignored the problem and allowed the crisis to fester. To salvage the Conservatives’ electoral prospects, the party’s next leader must institute planning reform and build more housing. The current leadership contenders don’t look promising in this regard. The frontrunner, Boris Johnson, has said nothing of substance on housing. Other candidates have only vaguely mentioned building more.

Tentative signs of change are emerging from within the party, however. Liz Truss, a minister widely regarded as a potential candidate for the Chancellor of the Exchequer, has advocated building 1 million new houses by removing planning restrictions that ban them on the edge of Britain’s cities. Sam Gyimah, an earlier leadership contender, pushed for an innovative plan that would allow individual streets, with a 66 percent voting majority, to let homeowners adopt a design code and construct apartments up to six stories high.

Britain’s Conservative Party of the 1950s backed an ambitious housing program that transformed the lives of millions. Now it stands at a crossroads. It can pander to the speculative interests of its homeowning membership and continue the restrictive-housing policies that have characterized the last 50 years, or it can reaffirm its vision of a property-owning democracy and once again make decent housing accessible to all. The Conservative Party’s future depends on which choice it makes.

Sam Watling is director of Brighton Yimby, a grassroots organization that seeks to end Brighton’s housing crisis with the support of local people.


There are some interesting reader comments after the above linked article.

_________________
The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.
- misattributed to Alexis De Tocqueville

No representations made as to the accuracy of info in posted news articles or links


Top
 Profile E-mail  
 
 Post subject: Re: Britain’s Housing Crisis
PostPosted: Thu Jul 04, 2019 12:45 pm 
Offline
Sergeant Major

Joined: Wed Nov 26, 2008 7:44 am
Posts: 12099
Reputation points: 19050
The comments seem to be full of similarly addicted idiots.

Landlordism is absolutely endemic in this country, and that's absolutely a zero sum game. It's got more in common with feudalism than capitalism. What do you do when you got a bit of money lying around? Buy ten houses and set up a people farm. These people provide nothing in economic terms, no houses are being built, they aren't even being well maintained in general - they are simply being hoarded by those who have access to either money or debt.

The markets would have corrected this years ago if not for constant government intervention in what is very far from a free market. It's actually got to the point now where serious economic damage would happen if the situation was corrected, I think we're well beyond a typical correction being possible at this point. All because no politician wants the bust to happen on their watch, hence the epically low interest rates and even on top of that, things like government bungs to actually throw money at people looking to buy . You can get the government to pay your housing deposit these days. Mad.

One reason why I voted Brexit was because I hoped maybe the shock would pop the housing bubble. Unfortunately despite Remainers promising me that would happen and lead to catastrophe (not a catastophe to me, an Austrian school style correction and badly needed at that), it turned out to be another Remainer lie like all the others. :(

_________________
“The gap in EU finances arising from the United Kingdom’s withdrawal and from the financing needs of new priorities need to be clearly acknowledged.” - Mario Monti


Top
 Profile E-mail  
 
 Post subject: Re: Britain’s Housing Crisis
PostPosted: Thu Jul 04, 2019 1:19 pm 
Offline
Sergeant Major
User avatar

Joined: Mon Sep 15, 2008 9:50 pm
Posts: 36448
Location: West coast of the east coast
Reputation points: 20000
EUBanana,

What are your thoughts on the following snippet from the article that I posted?

Quote:
Tentative signs of change are emerging from within the party, however. Liz Truss, a minister widely regarded as a potential candidate for the Chancellor of the Exchequer, has advocated building 1 million new houses by removing planning restrictions that ban them on the edge of Britain’s cities. Sam Gyimah, an earlier leadership contender, pushed for an innovative plan that would allow individual streets, with a 66 percent voting majority, to let homeowners adopt a design code and construct apartments up to six stories high.


To me, loosening planning restrictions would seem like a good idea to promote new construction.

Also allowing the construction of apartment buildings up to six stories high should also create more housing units.

I can see the possibility though that creating a "...plan that would allow individual streets, with a 66 percent voting majority, to let homeowners adopt a design code" might possibly lead to those local residents to stifle, rather than create opportunity for new housing.

No plan is perfect though.

I would be interested in your thoughts.

_________________
The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.
- misattributed to Alexis De Tocqueville

No representations made as to the accuracy of info in posted news articles or links


Top
 Profile E-mail  
 
 Post subject: Re: Britain’s Housing Crisis
PostPosted: Thu Jul 04, 2019 1:21 pm 
Offline
Sergeant Major
User avatar

Joined: Tue Feb 01, 2011 3:06 pm
Posts: 15583
Location: inside your worst nightmare
Reputation points: 18687
What is the ostensible rationale for regulations against building on the edge of communities? To prevent sprawl?

That is actually a legit agenda, but failing to implement other elements that allow for better utilization of land inside of boundaries while trying to reduce sprawl is totally not cool.

Regulations are generally bad. Incentives are generally better where there is an agenda that government seeks to compel.

_________________
Anthro's NSFW Thread


Top
 Profile E-mail  
 
 Post subject: Re: Britain’s Housing Crisis
PostPosted: Thu Jul 04, 2019 1:29 pm 
Offline
Sergeant Major

Joined: Wed Nov 26, 2008 7:44 am
Posts: 12099
Reputation points: 19050
chijohnaok wrote:
EUBanana,

What are your thoughts on the following snippet from the article that I posted?

Quote:
Tentative signs of change are emerging from within the party, however. Liz Truss, a minister widely regarded as a potential candidate for the Chancellor of the Exchequer, has advocated building 1 million new houses by removing planning restrictions that ban them on the edge of Britain’s cities. Sam Gyimah, an earlier leadership contender, pushed for an innovative plan that would allow individual streets, with a 66 percent voting majority, to let homeowners adopt a design code and construct apartments up to six stories high.


To me, loosening planning restrictions would seem like a good idea to promote new construction.

Also allowing the construction of apartment buildings up to six stories high should also create more housing units.

I can see the possibility though that creating a "...plan that would allow individual streets, with a 66 percent voting majority, to let homeowners adopt a design code" might possibly lead to those local residents to stifle, rather than create opportunity for new housing.

No plan is perfect though.

I would be interested in your thoughts.


Yeah, that's what needs to happen, or one thing that would help. It's actually happening already, there's certainly a lot of building going on near me.

Ultimately though the problem is they don't even recognise the problem, not openly . House prices need to come down. That should be the objective of policy not something to avoid. That's completely unacceptable though so I suspect the best we can hope for is stagnation and let inflation work its magic.

Incidentally house prices are driven more by the availability of debt, I think . The problem at root is a banking problem. If the average joe can get a mortgage for 150k and meet the payments comfortably, then miraculously that will be what houses will cost on average.

_________________
“The gap in EU finances arising from the United Kingdom’s withdrawal and from the financing needs of new priorities need to be clearly acknowledged.” - Mario Monti


Top
 Profile E-mail  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 5 posts ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group