Thursday, 24 July 2014

YPP Friday meet-up, 25 July

1. Usual haunt, Brewmaster Pub near Leicester Square Tube station, tomorrow from 5.20-ish.

2. If somebody wants to suggest somewhere else for next week/next time then I'm fine with anywhere between Canary Wharf and Southwark on the Jubilee Line (I think that must suit a few of us).

3. We have made some progress with the app, so if you can get internet on your phone I'll show you it.

Tuesday, 22 July 2014

Oh, so they've finally noticed? "Young priced out of a home"

From The Daily Mail (this was today's headline):

The number of young homebuyers has plunged to a record low.

A tiny 3 per cent of house sales last month were to those aged 18 to 30, down from 12 per cent last August. The stark figure shows how stagnant wages, rising property prices and tougher rules for borrowers are squeezing the young out of the market. It comes despite Government efforts to stimulate more purchases through its Help To Buy scheme.


Of course they are suffering from typical Homey amnesia.

This is actually the normal situation in unregulated land markets.

The only reason why previous generations could rent and buy cheaply was because of rent controls and mortgage restrictions, with easily available council housing for those with low or irregular incomes.

If you get rid of those things - which Thatcher and Blair did - we go back to the old ways where the poor get poorer, the rich get richer and there is a sharp divide between those old enough to have "got on the property ladder" and those young enough to be eternally shafted (broadly speaking, the divide is between those born before 1970 and those born later).

Thursday, 17 July 2014

YPP Friday meet-up, Friday 18 July/talk Saturday 19 July

Peter S said he'd be at The Brewmaster pub next to Leicester Square Tube Station from 5 or so, I'll pop in but I can't stay out long because I'm doing a talk near Cardiff at 3.30 on Saturday afternoon:
If you'd like to attend the Cardiff event, please send me an email and I will forward it to the organiser.

Friday, 11 July 2014

YPP meet up Friday 11 July

1. Usual haunt, Brewmaster Pub near Leicester Square Tube station, tomorrow from 5.20-ish.

2. If somebody wants to suggest somewhere else for next week/next time then I'm fine with anywhere between Canary Wharf and Southwark on the Jubilee Line (I think that must suit a few of us).

3. We have made some progress with the app, so if you can get internet on your phone I'll show you it.

Tuesday, 8 July 2014

Reader's Letter Of The Day

From the Evening Standard (8 July 2014, page 44):

Tony Travers is absolutely right (July 7) - London's land wealth could easily generate the revenue to fund all local services.

Rents are hugely in excess of building costs so councils could grant planning permission for built-to-let in exchange for [an] equity stake in each project, a common arrangement in parts of the EU.

Raising council tax to make London self-sufficient would also end the injustice of making the working poor in the rest of the UK subsidise Tube travel and (via housing benefit) rental receipts of the country's wealthiest landowners.

Joe Momberg, Young People's Party.

Tuesday, 1 July 2014

"Housing crisis? What housing crisis?"

It's all the entirely predictable outcome of deliberate and massive changes in UK government policy since the 1980s.

Full article at The Intergenerational Foundation.

Thursday, 26 June 2014

Outbreak of common sense…

… in London:

Half of Londoners want house prices to fall, an exclusive poll for the Standard reveals today. The startling find marks a historic about-turn in views on the soaring property market, say experts.

With the cost of buying a home rocketing out of the reach of ever more Londoners, almost a third of adults in the capital want property prices to go down “a lot”. A further 18 per cent favour them decreasing “a little”, the YouGov poll found, while just one in six people hopes prices carry on rising. The findings came as the Bank of England unveiled new measures to prevent an explosion of potentially dangerous mortgage debt that could stoke prices even higher.

Tanya Abraham of pollsters YouGov said: “While much has been made of the benefits of a house price boom, many Londoners don’t believe it’s a positive thing. Recently it seems thoughts have turned to the downside — namely, rising values locking many people out of buying a property.”

Home owners are now in a minority in London, with thousands of young “generation rent” workers feeling excluded from the property ladder by ever-rising prices. Those who have bought homes for the first time often find it impossible to move up to the next rung and would like to see prices falling. Younger adults aged 25 to 39, many of whom may be first-time buyers, appear most concerned about startling hikes of around 20 per cent a year in London, with 56 per cent of this group now wanting property prices to fall…

Paula Higgins, chief executive of the HomeOwners Alliance lobby group said: “There has been a fundamental, historic shift in attitudes that I don’t think the Government is aware of yet. People who own properties may have made money out of them but they now realise their children and grandchildren won’t have the same opportunities unless the Government stops this boom and bust property cycle.”


Until the 1980s the UK government had a raft of policies which prevented the worst excesses of the finance-land price boom bust cycle; it was made up of rent controls, mortgage multiple restrictions, social housing, high taxation of rental income, and bringing up the rear, Schedule A tax on owner-occupiers and Domestic Rates, all of which is moving vaguely towards a Land Value Tax system.