Housing

When will the property market start moving again?

For those looking to buy or sell houses, lockdown has put many of the best laid plans on hold. Since lockdown was imposed on the 23rd March, the property market has entered into a period of suspended animation. We don’t know when lockdown will end, nor what the financial and economic collateral damage will be for the UK economy and we certainly don’t know what the ‘new normal’ will be or how long it will have to go on for. So, what do we know? Financial markets, although initially taking fright, have recovered somewhat. Falls of between 10 and 15 per cent across indexes around the world with markets seeming

In defence of Priti Patel

We will rue the day we all decided bullying was a bad thing. The consequence is that the inept, the imbecilic and the perpetually frit will hang on to their jobs and we will become a much less efficient country. By bullying I do not mean physically beating someone up and stealing their lunch money, which is what it used to mean when it had a proper meaning. I mean telling someone they’re useless and deserve to be sacked, which is what bullying means today. As R.D. Laing might have put it, that kind of bullying is a rational response to irrationality. The Home Secretary, Priti Patel, who is 5ft

Why stamp duty could and should be cut

Given that the government is running a £40 billion deficit, is determined to increase spending on infrastructure and will not be facing an election for another five years, no-one should get their hopes up too much for tax cuts in the Budget. Indeed, most of the talk has been of possible rises. But if any tax is going to be cut it is likely to be Stamp Duty on property purchases, at least those made by owner-occupiers at the lower end of the market. No tax has been jacked up quite so much over the past two decades. When Gordon Brown started as Chancellor buyers paid a flat one per

Something is badly wrong with the housing market – so why aren’t we talking about it?

In 1991, 67 per cent of 25- to 34-year-olds owned their own home. In 2016, that figure had fallen to 38 per cent. The average house price in the UK is eight times the average wage, this ratio having doubled since 1998. Half of first-time buyers in Britain are now dependent on the Bank of Mum and Dad, rising to two-thirds in London and the south-east. Over the past 20 years, the proportion of people living in the private rented sector has doubled. There are one million more 18- to 34-year-olds living with their parents than there were in 2002. Between the mid-1950s and the mid-1990s (expressed in 2016 prices)

How much are political parties allowed to spend in the general election?

Election counts Michael Bloomberg — the ninth richest person in America — entered the US presidential race by buying $34 million (£26 million) worth of advertising just to launch his campaign. How does that compare with what British political parties are allowed to spend in the general election? — In Britain, each party is allowed to spend, centrally, £30,000 for each constituency fought. With 650 constituencies, this amounts to a maximum of £19.5 million. — In addition, individual candidates can spend £8,700 plus 6p per voter (in urban boroughs) or 9p per voter (in county constituencies). — Put the two together and it means there is an effective maximum level

Toxic regulations, not the fire brigade, are to blame for the Grenfell deaths

It has been bizarre to hear the London Fire Brigade taking the brunt of the blame for the deaths of 72 people at Grenfell Tower. Its commissioner Dany Cotton certainly deserves condemnation for persisting in telling residents to stay put when it ought to have been clear early on that fire was engulfing the building and it needed to be evacuated. Her suggestion that she ‘wouldn’t change anything we did on the night’ — in spite of the role her advice played in boosting the death toll — compounds her errors. Yet by the time the fire service arrived, tragedy was already assured. To pin the blame on Ms Cotton,

Great and small

‘I’m not going to your place, it looks like a crack den.’ It’s not exactly a vote of confidence when your mother describes your home that way. Admittedly, the bedsit I have lived in for ten years is tiny. There is no central heating. The white blinds have faded to yellow. It’s not much good for house parties: I could fit four people, five if I sat between the sink and the microwave. However, I would like to defend living in bedsits. Whenever I hear people complaining about housing in London, I wonder whether they have considered a bedsit. I’m autistic and work as a part-time carer, but even on

How the next PM can help solve the housing crisis

The Government’s commission on how to make new houses more beautiful – yes, that one – is set to publish its first report in the next few weeks. It no longer has a permanent Chair and it will be reporting to a different administration and a new prime minister, but its advice will be crucially important. In order to get new homes built in areas where opposition is most vociferous – which tend to be the places new homes are needed most – the house-building industry needs to change. Monocultural housing estates, once labelled the “turkey twizzlers of architecture” by the philosopher Alain de Botton, are simply not what the public wants.

The flawed logic behind Brokenshire’s landlord bashing

In what Communities Secretary James Brokenshire described as ‘the biggest change to the private rental sector in a generation’, the government has announced a ban on so-called ‘no-fault evictions’ of tenants by their landlords. ‘By abolishing unfair evictions, every single person living in the private rental sector will be empowered’, Brokenshire claimed. The Prime Minister said that ‘Millions of responsible tenants could still be uprooted by their landlord with little notice, and often little justification […] This important step will not only protect tenants from unethical behaviour, but also give them the long-term certainty and the peace of mind they deserve.’ According to the BBC, this means that ‘Private landlords will no

Would you be tempted by a 40-yr home loan? I know I would

I remember it so well: the existential angst, the self-doubt, the bitter railing against intergenerational inequality, all of which preoccupied me for much my twenties. The cause? Anxiety about getting on the housing ladder. When you’re in that desperate state, it’s all consuming. Owning your own home is the holy grail of adulthood. You imagine that if you achieve it, everything else will be alright, you will get on with the rest of your life, focus more on your career, somehow be more of a person. Flowers will grow in your garden, you’ll do things like chat to the neighbours and you will no longer be beholden to landlords, with

Home truths | 21 February 2019

The creation of a commission to examine beauty in new building created a stir in the media, with the chairman subjected to a hate storm of unusual turbulence even by the standards that he regularly has to endure. Hate storms arise when powerful interests are threatened, and this was no exception. There is hardly a person in this country who is not aware of what Milan Kundera has called the ongoing ‘uglification of our world’ and who does not hope that something might be done about it. No one I talk to denies the need for a large number of new houses. But they all hope that this need can

Sadiq Khan is wrong about rent control

Rent control would worsen London’s housing crisis while hurting the poor, immigrants, and minorities. Yet Sadiq Khan wants to make it the central plank of his bid to win re-election as London Mayor. Khan has said the case for rent control is ‘overwhelming’ and that ‘Londoners overwhelmingly want it to happen’. But while some may see rent control as a way of capping the money going into the pockets of landlords, it would actually make London’s problems worse. Rent control would lead to less home building—what London actually needs. On top of that it will mean lower quality housing and discrimination against the most vulnerable. From San Francisco to Stockholm, Berlin and New York, rent

Renter’s paradise

On turning 50, I realised I’d never own my own home. What bank would agree to give a mortgage to someone with no regular source of income? Even if I did somehow hold down a job, I would have just 15 years until retirement age. For a while, I was depressed. Owning your own home is the British dream. Why else would all those property shows I drool over be so popular? I won’t have anything to hand down to my kids. What sort of loser am I? Then I remembered: I live in a five-bedroom Victorian terrace in Islington, which is owned by the council. At £650 per month,

Home truths | 29 November 2018

King’s Cross station at 10.30 p.m. is not a happy place. Most commuters have long returned to their centrally heated homes, leaving the concourse free for the homeless to roam randomly in search of a few coins from stragglers. I was there to catch a late train to Potters Bar last week and almost missed my Cambridge–bound service due to the numerous men and women who approached and asked for money. Some looked dishevelled, disturbed, miserable; others were polite and seemed resigned to rejection. I keep thinking about one man in particular. He said he was an ex-soldier — a ‘veteran of conflict’, as he put it — and that

Creating inequality by degrees

Imagine a world where employers judged applicants solely on their dress. Anyone in frayed clothes or scuffed shoes would never get a job. This would be unfair to poorer applicants so, in the name of equality, the government might offer favourable loans up to £1,000 to buy interview clothing. At first glance this would seem a wonderful way to promote fairness. Yet if the number of jobs remained constant, such a policy would have the opposite effect: it would merely ratchet up the level of wasteful, zero-sum competition for what limited chances exist. Soon, anyone not sporting Savile Row tailoring and handmade shoes would be written off. Rather than widening

Theresa May’s housing speech shows up her flaws

The National Housing Federation isn’t used to Prime Ministers attending its annual conference. In fact, it’s not used to getting to know the same housing minister from year to year, as the job is the subject of so many reshuffles. Today Theresa May proudly told the body that represents housing associations that she was the first Prime Minister in history to speak at this event, adding: ‘To me, that speaks volumes about the way in which social housing has, for too long and under successive governments, been pushed to the edge of the political debate.’ Her speech then went on to say that she had made it her ‘personal mission

How does the housing crisis threaten a Tory government, and how can they fix it?

In Britain today, home ownership rates stand at a 30-year low. More and more families with young children are renting, while recent research from the Resolution Foundation found that one in three millennials are unlikely to ever own their own home. At the same time, Britain ranks fifth on infrastructure spending when compared to its G7 counterparts. How can the government solve problems in housing and infrastructure, and how can the private sector help in the fix? M&G Prudential brought together a group of politicians, economists and fund managers to determine the strategy, going ahead, at a recent Spectator roundtable. Fraser Nelson, Editor of the Spectator, chaired the roundtable. He

Another country | 31 May 2018

One day there won’t be anyone to deliver the mail any more, and then what will the City types do? I heard this prediction more than 20 years ago when I worked behind the bar at one of the pubs here in my rural town. At the time I considered it melodramatic, but now it seems like straight prophecy. Quite out of sight of central London — and other metropolises — the English countryside is suffering from a terrible immigration problem. These migrants don’t arrive on the back of lorries or in overcrowded boats, but in removal pantechnicons and SUVs, carrying laptops and trailing children. Unable to afford the space

How can Britain build more homes?

It is generally agreed that Britain is suffering from a housing crisis, with big cities such as London being particular flashpoints. This year in the capital, the number of renters exceeded the number of homeowners for the first time. In the country, home ownership rates stand at a 30-year-low. And the proportion of 25 to 34-year-olds who are renters has almost doubled in the last 10 years. At the same time, 1.8 million families with children live in rented homes with tenancies shorter than a year. Homelessness is also on the rise and house building has consistently fallen below the government’s target. But what is the policy solution to all

Home truths | 19 April 2018

Much rot is spoken about how the young have it so bad. In fact, this generation is healthier, richer and better-educated than any before — as well as being better-behaved and more conscientious than their parents were. But the one area where they do struggle is in buying a house. The asset boom of recent years has disfigured the economy, sending property prices soaring and conferring vast wealth on pensioners while giving the young a mountain to climb. Home ownership rates stand at a 30-year low. And the proportion of 25- to 34-year-olds in private rented accommodation has almost doubled in the last ten years. This marks not just a