Shifting underoccupiers

There is little doubt that we are facing significant problems in the housing market. Most obviously, problems of access and affordability. And there is little doubt that we must be heading towards a housing statement from the Government. Reports from think tanks and lobby groups – each trying to exert some influence over the direction of policy – are appearing with alarming regularity. Last week it was the turn of the little-known Intergenerational Foundation to produce a report called Hoarding of Housing. The report received quite a lot of media coverage. As far as I could tell most of it was negative. That seems to me both fair and unfair. Read more of this post

Up to the task? Dealing with housing market volatility

It does not take great insight to realise the UK housing market is in a mess. Recently we’ve witnessed significant nominal house price declines and consequent negative equity, a massive contraction in the supply of credit, a private sector construction collapse, and social house building as a victim of austerity. Repossessions have risen. And that affects not just owner occupation but also ripples out to the private rented sector as Buy to Let landlords fall behind with their payments and tenants lose their homes. Demand for both social and private rented housing has increased as ownership becomes unaffordable or inaccessible for many.

Layered on top of all this we’ve had a series of policy initiatives around housing allowances in the private rented sector, support for independent living, and rents and tenure in the social sector that are not obviously going to improve the situation. Indeed, critics argue forcefully that these policy manoeuvres are only going to exacerbate the problems.

The dimensions of the problem are not generally contested. The question is what we do about it. The latest attempt to chart a course out of the jam we’re in is the final report of the Joseph Rowntree Foundation’s Housing Market Taskforce Tackling Housing Market Volatility in the UK, published today. Read more of this post

Under-occupation, over-accommodation, and the question of tax

It is always welcome when someone wanders on to your patch and looks at it with fresh eyes. That is why I found George Monbiot’s article in yesterday’s Guardian so stimulating (available here). Not that I entirely agreed with him, but I think he is right to pose unconventional questions about British housing policy.

Monbiot’s argument is, briefly, that if and when we think about under-occupation as a housing problem the focus is always on social housing, but this is to miss the bigger issue of under-occupation in the private sector. This is surely correct. Read more of this post

One and a half cheers (at least) for Mr Shapps

Our Housing Minister must be congratulated. Today’s Observer carries a front page article under the heading Minister pledges to end the housing price rollercoaster. Mr Shapps acknowledges that the rapid increases in house prices we have witnessed over the last decade have caused considerable pain for those seeking to enter the owner occupied market. Effectively many young people are completely shut out of the market by a combination of high prices and tight lending criteria – stringent deposit requirements in particular. Those without access to the ‘bank of mum and dad’ are further disadvantaged. They may be looking at heading into early middle age before being able to purchase a property. The remedy for this problem in Mr Shapps’s view is a housing market characterised by ‘house price stability’. The ideal, from his perspective, would be house price inflation of 2%, which is outstripped by the growth in real wages. This, of course, means housing becoming progressively cheaper in real terms.

This is all good stuff. It could turn out to be a defining moment in UK housing policy. Read more of this post

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