PROPERTY CORNER
HOUSING - A MAJOR STORM BREWING
Mohammed Mahroof BSc (Hons) MRICS Consultant Mark Jenkinson & Son This columnist has talked about the impending Housing crises for a number of years. I am not saying “I told you so”, but it was inevitable it would rise to the highest level on the political agenda. Little did I know when penning those articles how important an issue this would become in the General Election and furthermore the debate it would create not just locally but nationally. Look at any newspaper or listen to any talk show and you will clearly see that it has become a major issue.
Private Rented Sector
then why the developing crisis?. Demand and Supply is one part of the equation the other is finance. If you are on the front line of development you will know that to secure finance for housing development on a small to medium scale is very difficult. There are many sites in some areas lying undeveloped because developers cannot secure finance. Clearly this scenario is more evident in the north than the south.
It is a sector I have talked about before, very popular in many parts of Europe and the world, not so in this country. It is a changing sector with many commentators predicting that it will become a much more acceptable choice for many people. As demand for such accommodation increases so will the quality and volume. Political parties are starting to come forward with ideas of how this sector could work, such as longer tenancies giving people security In some areas where house prices are not so high developers are not keen on even talking about building new homes because of It was an issue that was addressed in Philip Hammond's first budg- to lay down roots. financial issues. If this situation is not fully addressed we could poet statement last week with billions of pounds allocated to providing affordable housing. How this works out will be a test of time. Rent controls, these have been tried previously. They could result tentially see house price differential growing rather than reducing. in fewer landlords entering the market although the climate and There are many planning applications across the country for new It is without contradiction a fact we need to build more homes. market thinking is different from the past. homes which have not been actioned because of financial issues. Why this has come about is also quite simple, demand outstrips If these sites were developed we would see supply insupply, an issue this columnist has talked about in precreasing in a more equitable way. vious ILM articles. The reason demand is higher than supply is also quite simple, we have been through In the market generally demand for good quality recessionary times resulting in very few homes being homes in the right areas are seeing prices rising and built thereby creating huge demand and rising prices. sales being agreed within a few days. A phenomenon I have not seen for over eight years. The demand for It is also good to hear all political parties agreeing. houses is going to continue to rise as we see more They will encourage building of new homes, ranging overseas investors coming into the market, coupled from 200,000 to over a million. Although these numwith many older people having their pensions unfrobers look high they do not go far enough in covering zen wanting to buy homes to rent, money in the bank the demand, why?, because we already have a high not yielding a great return, prices are inevitably going backlog to cover before inroads can be made into futo rise. ture need. Let's be positive, at least there is action and recognition, it is a subject that needs serious In London a one bedroom ex council flat can cost thought with supporting policies. £950K, the monthly rent could be £1200. It is easy to see why housing is very high on peoples agendas. By So how should this demand be met?, the thoughts no means is this scenario isolated to the south, it is coming forward are as follows. evident in the affluent suburbs of the north. Social House Building Building In The Green Belt. It was a very successful policy following the second It is an extremely unpopular solution which is unpalatWorld War. A huge number of houses were built able for many but it is one that will need to be considacross the country which provided much needed family homes. These numbers were further helped by Housing Asso- There are already major investors looking at investing in this sector ered. There have already been sites identified across the country making it clear this sector of the housing market is going to grow. which inevitably have been resisted. ciations and a steady stream of house building.
The real issue is that as a country our population is rising and we will need to look at the greenbelt however controversial this may It is the most popular choice for people in this country. Each party be. is laying out their policies aimed at this major army of would be home owners. They are considering building new towns, building Therefore whatever your political persuasion it is clear that housin the greenbelt, building on major brownfield sites. The enthu- ing has quite rightly become a national issue which hopefully will siasm to come up with ideas for new build are endless. In terms not get swept under the carpet. It is incumbent on Local and Cenof affording a new home the scenarios are many. Equity share, tral Government to address this issue as a long term policy. shared ownership, rent to buy, first time buyer incentives, lower In conclusion housing is a basic human need along with health, Will there be a widespread house building by Local Authorities? deposits, help to buy, one could go on. education and employment and is quite rightly being discussed at The answer lies in your town or city. How many have been built in If there are so many potential ways of owning your own home the top table. the last few decades or so?. There is a strong lobby developing, encouraging further social house building programmes. Predicated on the back of many of these properties having been sold on the Right to Buy policies of previous governments. Whatever your thoughts on this policy nobody can deny it was extremely popular. In fact there is talk about this policy being extended to people living in Housing Association homes which I would imagine will be just as popular. After all we are a nation passionate about home ownership.
Buying a House
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Stay Well This Winter Make sure you are prepared for winter, especially if you have long-term health conditions and are over 65. • It is important to keep warm in winter, so wrap up and heat your home to at least 18°C (65°F), and if you can, you might prefer your living room to be slightly warmer. • If you are entitled, make sure you get your flu jab before the 31 December. • At the first sign of a cough or cold, get immediate advice from your pharmacist before it gets more serious. • Speak to your pharmacist about medicines you should have in stock over winter. • Pick up prescription medications before the Christmas holidays start as many GPs and pharmacies will close over the holidays. • Visit a walk-in centre. They’re mainly run by nurses who can treat minor illnesses and injuries on the spot. • If you need help over the holiday period when your GP surgery or pharmacy is closed, call NHS 111 or visit www.nhs.uk. The Stay Well This Winter campaign can help you and your family prepare for winter. Visit www.nhs.uk/staywell for more information.
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