Friday, 5 September 2014

Reader's Letter Of The Day

From The Evening Standard (5 September, page 56):
 
It was the postwar policy package of rent controls, higher property taxes  and easily available council housing that enabled Lammy's parents to buy a house for £6,000. It was inevitable that house prices and rents would rocket after Thatcher and Blair dismantled and reversed this.
 
There's much to welcome in Lammy's housing plans. If anything he is too timid. Why not cap private sector rents at 20 per cent below current levels rather than 20 per cent higher, saving billions in Housing Benefit and easing the strain on working tenants.
 
Mark Wadsworth, Young People's Party

Thursday, 28 August 2014

YPP Friday meet-up, 29 August

We had a good turnout two weeks ago; five members and two interested.

I can't make it tomorrow (family outing) but you can co-ordinate with each other in the comments to this post.

Our usual haunt is the Brewmaster pub near Leicester Square Tube station, tomorrow from 5.20-ish.

Saturday, 16 August 2014

UK house prices are now about seven times earnings

Shaun Richards at Mindful Money has looked at Halifax' recent statistic that house prices are 5.02 time earnings...

Putting it another way using median earnings for everyone the ratio of earnings to house prices is now 6.9.

Well worth a read.

I left a comment as follows:

There is another reason for going with your 6.9 figure and that is because you have to compare like with like.

Halifax' £186,000 house price is not the average (that's about £260,000 according to the ONS) it appears to be the median.

So you can compare median house price with median wages = 6.9

Or you can compare average house price with average wages = 7.4

Thursday, 14 August 2014

YPP Friday meet-up, tomorrow 15 August

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.

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.