What next? Ban people from running more than one shop or restaurant as makes harder for others to do so?
Well one ain't gonna make a million running a shop up Grove Park BR Station that's for sure. I had visions of given Woolies a run for their money, but it was taken away by the Tesco Petrol Station across the way
There's a segment of our housing property market which is little more than high interest investment packages at the moment. Ironically, rather than a weakened GBP negatively effecting it, it's done the opposite. The ROI remains the same percentage, just the monetary barrier to entry is reduced.
Aussie style rules about foreign ownership would be great, or a tax that negates the advantageous ROI of an unoccupied property? Either would be a good start, and arguably the second would result in some very nice funds for the government - funds that could go in to dealing with homelessness and social housing.
Alas - much like the railways - whilst there's some cash to be made then those actually affected will have to sod off and fend for themselves. (Feck me, I'm not much of a Tory at heart, am I?!)
The market for overseas millionaires/billionaires buying property in London as an investment must surely be peaking? And Anchor and Hope lane is hardly that desirable a location, with all the warehouses, retail parks and Sainsbury's depot around there anyway, so I'd have thought they'd need to be relatively affordable to shift
But they don't need to shift. They'll lie there indefinitely - perhaps one day a better transport link might be opened (shuttle monorail to the Woolwich Crossrail stop?) and they'll be filled up, but this is for now largely irrelevant. They're London property. Who knows how much that'll be worth when the rest of Britain/Europe/the world goes to shit? The wealthy are terraforming the Earth to their absolute benefit - some of their punts don't work out, but if they secure enough of the good land, they'll be kings when the bad land dissolves into nothingness.
Owning large amounts of property that is not lived in should be illegal, of course, but which Labour leader would be badass enough to say this? Your move, Jezza...
Christ almighty......you're a happy little soul ain't ya!
Didn't the Torres also relax rules about having to include social housing? Agree higher tax on foreign investors is needed to reap a reward here - don't like that we penalise uk people for buying a second home /investment property for a pension or savings plan though
With the fall in the value of the Pound Sterling, I would sadly expect foreign investment in London property to increase - it's cheap as chips for them. Just go to Bicester Village to get an idea of how cheap we are now and how they're onto us as a cheap market in general.
We urgently need to follow the Aussies before it's too late - assuming it's not too late, which it might well be.
I refer you to a Genesis album from the early 1970s .. 'Selling England by the Pound' .. nothing new here .. everything is up for grabs .. companies, properties, railways, power companies .. you name it, we sell it and pay a heavy price later .. Australia has got it right
New changes in the U.K. Tax relief on Pensions is also having an effect - even though the Government have taken steps to dampen interest in second properties by way of duties. Imho, the duties are way too low and will not deter buyers who are redirecting what would have been pension funding into second properties or buy to let - this is also pushing prices up and reducing affordability of properties for our younger generations.
HMG is also removing tax relief on mortgages on buy to let.This will mean that a lot of landlords will need to get rid as profits disappear. I would expect a glut of 2 bedroom flats onto the market and prices of this type of property in particular to fall.
This is a subject I have massively strong feelings on for a number of reasons. First and foremost as a perennial renter I apologise if this comes over as sour grapes and my argument is led via rant than objectively taking into consideration all viewpoints (this is also almost entirely written from the point of view of living in London).
The whole property market here in our capital is a disgrace. for the 2nd time just gone I volunteered at crisis. What we have is a society led by a government who couldn't give a f*** if you're ever unfortunate enough to need help, disabled, sick or have the misfortune to lose your job. Not wanting to get overly political or left vs right, but the Tories just do not care.
Should you fall victim to homelessness, councils cannot help you anymore. There is no money left. You are at the mercy of what charities like st Mungos and Shelter can do for you. You are prioritised if you are a woman/woman with children which is absolutely fair enough, but if you are at the thin edge of that wedge then it's a long hard, hard road.
You may wonder why I lead with homelessness when this is a discussion about property, but it's all linked. Take rents. Now I live 3 to a 2 bed because I share it with my sister and her boyfriend. It's a lovely property and believe me, having done a couple of volunteer stints at Crisis, in the grand scheme of things, I have very little to moan about. What we pay in rent I imagine covers our Landlord's mortgage quite comfortably. I have grown up in London so have family and a network of friends.
Imagine you're a single person who moves to the capital for a job, then loses that job and can't afford to pay rent and doesn't have a network to fall back on. You then slip through the cracks and through no fault of your own you're out on the streets. It can happen. And I believe it can happen to anyone outside of this demographic if certain things conspire to work against them in an unfortunate perfect storm.
The whole way housing is set up in the capital isn't fit for purpose anymore. Am I jealous of my mates that all own houses now. Of course I am. I'm happy that they have one, but at the same time, I feel I work hard, I was born in this city, I work here, my friends and family are here, why can't I buy a house here. I don't doubt that maybe if I'd have scrimped and saved and lived like a monk, there may be a deposit there by now for an over inflated property somewhere, but I also went to Uni, had to pay back a student loan, and a graduate loan when I decided to do my LPC at the College of Law and I've had to move a few times when renting. Each rental move for most means they've got to stump up quite a bit up front to cover a deposit and the first month's rent. Renting isn't cheap. When you consider all these factors, especially now, as it costs more to go to university, how the f*** are people going to save unless they're earning mega money?
I laugh when I see new builds going up in London that hit the market at £350k for a one bed flat. In the grand scheme of things that means you still need to have £35k deposit to play. Keep building as many f****** homes as you want. If they're priced at £350k to start, only foreign investors or existing homeowners can play. So essentially these properties become rental accommodation. The cycle of shit continues.
Again, I need to reign my vitriol in a bit because if I had a family and wanted to leave them security and an investment for their future and I already had one property but could buy another, of course I'm going to. I'm just saying in the interests of fairness for all of society, I don't think we have that luxury in London anymore where owning 2nd and 3rd homes is going to help address this practically.
I've also got to be mindful that the city is overcrowded, so I do have to take into account what practical steps can the government really make to address this. One thing I was amazed at was the BoE's decision to lower rates post Brexit. Great. Yet more lower rates of interest that benefit existing homeowners but don't really get to the core of solving the problem, and if anything just feels like another punch in the gut.
Sorry, I really do feel like I'm not being very objective here and have gone off on some diatribe. It's just that I'm sick of what seems to me a culture of people back slapping one another because they bought at a time when their property was worth X and it's now worth a lot more. I'm sick of not really feeling like I've achieved something because I turn 35 next week and feel like I'll be renting forever, despite playing the game to the very best of my abilities. I should really pull my head out my arse and remember I'm lucky to have a roof over my head having volunteered for crisis and seen how it could be.
Very good post Cabbles. A thoroughly depressing one I might add and something that probably many of us worry about. It's unsustainable and am concerned for the future generations and how anyone on a nice regular salary will ever be able to afford a home.
This is a subject I have massively strong feelings on for a number of reasons. First and foremost as a perennial renter I apologise if this comes over as sour grapes and my argument is led via rant than objectively taking into consideration all viewpoints (this is also almost entirely written from the point of view of living in London).
The whole property market here in our capital is a disgrace. for the 2nd time just gone I volunteered at crisis. What we have is a society led by a government who couldn't give a f*** if you're ever unfortunate enough to need help, disabled, sick or have the misfortune to lose your job. Not wanting to get overly political or left vs right, but the Tories just do not care.
Should you fall victim to homelessness, councils cannot help you anymore. There is no money left. You are at the mercy of what charities like st Mungos and Shelter can do for you. You are prioritised if you are a woman/woman with children which is absolutely fair enough, but if you are at the thin edge of that wedge then it's a long hard, hard road.
You may wonder why I lead with homelessness when this is a discussion about property, but it's all linked. Take rents. Now I live 3 to a 2 bed because I share it with my sister and her boyfriend. It's a lovely property and believe me, having done a couple of volunteer stints at Crisis, in the grand scheme of things, I have very little to moan about. What we pay in rent I imagine covers our Landlord's mortgage quite comfortably. I have grown up in London so have family and a network of friends.
Imagine you're a single person who moves to the capital for a job, then loses that job and can't afford to pay rent and doesn't have a network to fall back on. You then slip through the cracks and through no fault of your own you're out on the streets. It can happen. And I believe it can happen to anyone outside of this demographic if certain things conspire to work against them in an unfortunate perfect storm.
The whole way housing is set up in the capital isn't fit for purpose anymore. Am I jealous of my mates that all own houses now. Of course I am. I'm happy that they have one, but at the same time, I feel I work hard, I was born in this city, I work here, my friends and family are here, why can't I buy a house here. I don't doubt that maybe if I'd have scrimped and saved and lived like a monk, there may be a deposit there by now for an over inflated property somewhere, but I also went to Uni, had to pay back a student loan, and a graduate loan when I decided to do my LPC at the College of Law and I've had to move a few times when renting. Each rental move for most means they've got to stump up quite a bit up front to cover a deposit and the first month's rent. Renting isn't cheap. When you consider all these factors, especially now, as it costs more to go to university, how the f*** are people going to save unless they're earning mega money?
I laugh when I see new builds going up in London that hit the market at £350k for a one bed flat. In the grand scheme of things that means you still need to have £35k deposit to play. Keep building as many f****** homes as you want. If they're priced at £350k to start, only foreign investors or existing homeowners can play. So essentially these properties become rental accommodation. The cycle of shit continues.
Again, I need to reign my vitriol in a bit because if I had a family and wanted to leave them security and an investment for their future and I already had one property but could buy another, of course I'm going to. I'm just saying in the interests of fairness for all of society, I don't think we have that luxury in London anymore where owning 2nd and 3rd homes is going to help address this practically.
I've also got to be mindful that the city is overcrowded, so I do have to take into account what practical steps can the government really make to address this. One thing I was amazed at was the BoE's decision to lower rates post Brexit. Great. Yet more lower rates of interest that benefit existing homeowners but don't really get to the core of solving the problem, and if anything just feels like another punch in the gut.
Sorry, I really do feel like I'm not being very objective here and have gone off on some diatribe. It's just that I'm sick of what seems to me a culture of people back slapping one another because they bought at a time when their property was worth X and it's now worth a lot more. I'm sick of not really feeling like I've achieved something because I turn 35 next week and feel like I'll be renting forever, despite playing the game to the very best of my abilities. I should really pull my head out my arse and remember I'm lucky to have a roof over my head having volunteered for crisis and seen how it could be.
Nail on head, Cabbies A well explained article on a depressing subject. I fear that many of our Politicians are buy to rent Landlords so I don't see much change in the system any time soon. Good luck - sounds like you're a hard working, decent man with honest values.
I couldn't afford to live in London if I wanted to - certainly not how I'd like to live, that's for sure. My recommendation is to move out to Suffolk or North Essex if practical - it's beautiful, by the seaside and we have space!
@cabbles - why did you not wait until you had a deposit to buy a property rather than going into the rental market ?
I'm presuming that there weren't other options. While I expect my kids to be living with me until they're in their 50s/I've died, this isn't always possible for everyone.
@cabbles - why did you not wait until you had a deposit to buy a property rather than going into the rental market ?
Yeah - why didn't you just save 60k or so mate?!?
Interesting comment.
I am in my late 50's now however when my wife & I decided to buy our first home in our 20's we opened a joint account and saved very, very hard for two years, it paid off and we got our deposit together and this resulted in us getting on the property ladder.
We passed this ethos on to our children and both did the same with a partner and after a couple of years of very hard saving and sacrifice they were both in their own houses and on the property ladder before they hit 30 and this was within the last 3 years.
Obviously this is harder for a single person but not impossible.
If a youngster nowadays wants to go clubbing every weekend, holiday in Ibiza and get a new iphone every 6 months it is not going to happen, the rental market is the best they could expect.
However with hard work and sacrifice it can be done.
And before anyone thinks my kids earn a lot of money they don't, my son is an electrician, employed not self employed and my daughter is a manager in a child's nursery which is an industry known for poor wages.
Comments
Ban people from running more than one shop or restaurant as makes harder for others to do so?
Don't you mean clob?
An occupied property used as an investment vehicle doesn't even provide council tax to the community.
There's a segment of our
housingproperty market which is little more than high interest investment packages at the moment. Ironically, rather than a weakened GBP negatively effecting it, it's done the opposite. The ROI remains the same percentage, just the monetary barrier to entry is reduced.Aussie style rules about foreign ownership would be great, or a tax that negates the advantageous ROI of an unoccupied property? Either would be a good start, and arguably the second would result in some very nice funds for the government - funds that could go in to dealing with homelessness and social housing.
Alas - much like the railways - whilst there's some cash to be made then those actually affected will have to sod off and fend for themselves. (Feck me, I'm not much of a Tory at heart, am I?!)
Jokes aside, that'd be a little goldmine. Are they gonna build a station to put it next to?
The whole property market here in our capital is a disgrace. for the 2nd time just gone I volunteered at crisis. What we have is a society led by a government who couldn't give a f*** if you're ever unfortunate enough to need help, disabled, sick or have the misfortune to lose your job. Not wanting to get overly political or left vs right, but the Tories just do not care.
Should you fall victim to homelessness, councils cannot help you anymore. There is no money left. You are at the mercy of what charities like st Mungos and Shelter can do for you. You are prioritised if you are a woman/woman with children which is absolutely fair enough, but if you are at the thin edge of that wedge then it's a long hard, hard road.
You may wonder why I lead with homelessness when this is a discussion about property, but it's all linked. Take rents. Now I live 3 to a 2 bed because I share it with my sister and her boyfriend. It's a lovely property and believe me, having done a couple of volunteer stints at Crisis, in the grand scheme of things, I have very little to moan about. What we pay in rent I imagine covers our Landlord's mortgage quite comfortably. I have grown up in London so have family and a network of friends.
Imagine you're a single person who moves to the capital for a job, then loses that job and can't afford to pay rent and doesn't have a network to fall back on. You then slip through the cracks and through no fault of your own you're out on the streets. It can happen. And I believe it can happen to anyone outside of this demographic if certain things conspire to work against them in an unfortunate perfect storm.
The whole way housing is set up in the capital isn't fit for purpose anymore. Am I jealous of my mates that all own houses now. Of course I am. I'm happy that they have one, but at the same time, I feel I work hard, I was born in this city, I work here, my friends and family are here, why can't I buy a house here. I don't doubt that maybe if I'd have scrimped and saved and lived like a monk, there may be a deposit there by now for an over inflated property somewhere, but I also went to Uni, had to pay back a student loan, and a graduate loan when I decided to do my LPC at the College of Law and I've had to move a few times when renting. Each rental move for most means they've got to stump up quite a bit up front to cover a deposit and the first month's rent. Renting isn't cheap. When you consider all these factors, especially now, as it costs more to go to university, how the f*** are people going to save unless they're earning mega money?
I laugh when I see new builds going up in London that hit the market at £350k for a one bed flat. In the grand scheme of things that means you still need to have £35k deposit to play. Keep building as many f****** homes as you want. If they're priced at £350k to start, only foreign investors or existing homeowners can play. So essentially these properties become rental accommodation. The cycle of shit continues.
Again, I need to reign my vitriol in a bit because if I had a family and wanted to leave them security and an investment for their future and I already had one property but could buy another, of course I'm going to. I'm just saying in the interests of fairness for all of society, I don't think we have that luxury in London anymore where owning 2nd and 3rd homes is going to help address this practically.
I've also got to be mindful that the city is overcrowded, so I do have to take into account what practical steps can the government really make to address this. One thing I was amazed at was the BoE's decision to lower rates post Brexit. Great. Yet more lower rates of interest that benefit existing homeowners but don't really get to the core of solving the problem, and if anything just feels like another punch in the gut.
Sorry, I really do feel like I'm not being very objective here and have gone off on some diatribe. It's just that I'm sick of what seems to me a culture of people back slapping one another because they bought at a time when their property was worth X and it's now worth a lot more. I'm sick of not really feeling like I've achieved something because I turn 35 next week and feel like I'll be renting forever, despite playing the game to the very best of my abilities. I should really pull my head out my arse and remember I'm lucky to have a roof over my head having volunteered for crisis and seen how it could be.
A well explained article on a depressing subject.
I fear that many of our Politicians are buy to rent Landlords so I don't see much change in the system any time soon.
Good luck - sounds like you're a hard working, decent man with honest values.
I couldn't afford to live in London if I wanted to - certainly not how I'd like to live, that's for sure.
My recommendation is to move out to Suffolk or North Essex if practical - it's beautiful, by the seaside and we have space!
I am in my late 50's now however when my wife & I decided to buy our first home in our 20's we opened a joint account and saved very, very hard for two years, it paid off and we got our deposit together and this resulted in us getting on the property ladder.
We passed this ethos on to our children and both did the same with a partner and after a couple of years of very hard saving and sacrifice they were both in their own houses and on the property ladder before they hit 30 and this was within the last 3 years.
Obviously this is harder for a single person but not impossible.
If a youngster nowadays wants to go clubbing every weekend, holiday in Ibiza and get a new iphone every 6 months it is not going to happen, the rental market is the best they could expect.
However with hard work and sacrifice it can be done.
And before anyone thinks my kids earn a lot of money they don't, my son is an electrician, employed not self employed and my daughter is a manager in a child's nursery which is an industry known for poor wages.