Housing Crisis - Could This Be Why?

69% of new builds are bought by non-residents (and most of them don't even want to live in them but want them as an investment property) and they are prepared to pay over the odds for what they want. Doesn't this push up the cost of housing,not to mention availability, for everyone else?

Isn't there a way this could be stopped? If it continues, will it come to either our grandchildren and their children could have little choice in the future or we end up building on every available piece of land?


(article too difficult to chop and still make sense)
http://uk.finance.yahoo.com/news/no-...165014502.html

Re: Housing Crisis - Could This Be Why?

Yes I've thought this all along, everyone wants to make a quick killing dont they and 'damn the consequences' !
Selfish lot !

Re: Housing Crisis - Could This Be Why?

They should allocate more for social housing. People who really can't afford to buy are either being forced to in order to stay in areas they need to live in or move away, either into cheaper properties or social housing wherever they can.

Re: Housing Crisis - Could This Be Why?

Its called Selfish Greed,no more,no less,Greedy Selfish people!

Re: Housing Crisis - Could This Be Why?

Maybe it's time there was a cap put on houses for sale and more social housing was encouraged - getting people to buy when they know what's inflating the prices is ridiculous.

Re: Housing Crisis - Could This Be Why?

This all stems back to Margaret Thatcher (phth, phth, phth) who determined to make us all home-owners. The problem then, as now is that Councils were and are debarred from building replacement social housing to replace those they sold-off. As a consequence there has been and still is a severe shortage of social housing in particular as well as a shortage of housing per se. Until this huge deficit is replaced there will continue to be problems with housing whilst those who buy to rent coin in the money and are likely to spawn another Rachmann.

Re: Housing Crisis - Could This Be Why?

There are now thousands upon thousands of respectable Rachmanns Joe. The difference now is that their behaviour is legal and subsidised by the government/councils. One of my sons recently moved from their two-bedroom rented maisonette to a bigger house. The landlord immediately put in the builders, divided the maisonette into 6 bedsits and is charging the same rent that my son paid for the whole maisonette for each bedsit. They can charge what they like because they know that the council will subsidise the rent for them. As a result millions goes into the pockets of private landlords when it could be used to build new social housing by local authorities at affordable rents.

Re: Housing Crisis - Could This Be Why?

I guess I'm not understanding. People are buying houses for income property.. that means that they are renting homes out to people. They are paying inflated prices to get these houses.. and renting them out at high rental rates? When you say non-residents do you mean that the buyers are from out of the country? If not.. then I don't see the problem. If the money is staying in England and being spent in England then it's benefiting the English economy. AND sooner or later, if people cannot afford the high rental rates, the market will adjust to demand and the prices charged will have to come down or the property will stay vacant.

Re: Housing Crisis - Could This Be Why?

We just need to use the properties we already have better IMO, empty houses and offices could I believe be put back into more productive use by making them into homes for people at an affordable rent. Just looking round Woking at all the empty offices we could house all the homeless and those in B&Bs really easily, they all have plumbing and electric and sound proofing and many are even air conditioned !

Re: Housing Crisis - Could This Be Why?

I think you've worked it out pretty well, Audrey. Some people might call it "Selfish greed", but others will call it "entrepreneurial". What does a shop do? - buys goods wholesale and sells them retail to make a profit.

Some people see an opportunity, develop a property and sell or rent it for a profit. And it's not that simple as there has to be a demand for the type of property that you're selling / renting. Also, housing has a set market value in a particular area and people are not going to spend more than the going rate. Typical returns on rental property are about 8%-10% of market value.