Will the plan work to turn generation rent into buy?
Discussion
BritishBlitz87 said:
I'd love to move to Accrington and have my own 3 bed semi for 150k,I just don't want to spend the rest of my working life stacking shelves for a living because the nearest lab is three hours away.
You should .. some fabulous areas around with some of the best driving roads in the country on your doorstep Easy commute into Manchester with excellent transport links
Some really good high paid jobs in the area particularly in aerospace engineering
Oh and lots of Michelin starred pubs
Don’t sneer about what you clearly know nothing about
Northernboy said:
Don’t be daft. Looking only in my county there are old pit villages with very cheap housing 20 minutes from the centre of Newcastle, where there are plenty of good jobs. An awful lot of the villages themselves now have New Towns built around the old centre, with plenty of jobs in the industrial estates adjacent to them.
Merck develop and produce medicines in Cramlington, an old pit town. There’s a new Gigafactory being built where the power station once stood at Blyth. Coutts have an office in Newcastle, the old Armstrong factory is employing engineers again to reconfigure main battle tanks.
Sage Group is based in Newcastle, the National Institute of health has a biomedical research lab there, there’s a very good university, and until recently my tenant in Newcastle was was the CEO of an oil company.
That said, are you actually earning much more in your current job than a supermarket worker?
No Merck develop and produce medicines in Cramlington, an old pit town. There’s a new Gigafactory being built where the power station once stood at Blyth. Coutts have an office in Newcastle, the old Armstrong factory is employing engineers again to reconfigure main battle tanks.
Sage Group is based in Newcastle, the National Institute of health has a biomedical research lab there, there’s a very good university, and until recently my tenant in Newcastle was was the CEO of an oil company.
That said, are you actually earning much more in your current job than a supermarket worker?
Edited by Northernboy on Monday 5th April 18:46
, but most of the scientists and senior crafts are on good money and about half came up through the apprentice schemes; the T&C's of the job are some of the best around, the work is interesting and the pension is very comfortable indeed. 40 years' service isn't unusual, I once saw someone with a 60 years' service pin! A shelf stacker is extremely unlikely to be promoted to managerial positions IME and the company treats you like a used cotton bud even if your immediate managers do care.clockworks said:
The idea is to get the houses back on the market so that people can buy them to live in as owners rather than renters. Added bonus of a large influx of property would be to lower prices a little.
I had no idea that short-term lets by private landlords to skilled migrant labour was a thing. Maybe leave that kind of market to the big players - business landlords, rather than private individuals with one or two BTLs.
But I’ve not out mine back on the market. I’m having it refurbished. Shifting a couple of cars up there, and will start using it for part of the year. I’m not alone in this; the proposals are just going to screw a lot of renters whose needs aren’t serviced anywhere else.I had no idea that short-term lets by private landlords to skilled migrant labour was a thing. Maybe leave that kind of market to the big players - business landlords, rather than private individuals with one or two BTLs.
My Canary Wharf flat is tenanted, and I’m considering doing the same there. It’s making about 1% yield at the moment, and the professional couple who live in it don’t want to buy, they prefer to rent.
Biggy Stardust said:
Just out of curiosity, where will all the tenants live now that you've completely killed the rental market?
Also you've destroyed all remaining trust in the UK government regarding business investment. You might wish to consider the unintended consequences of your suggestion.
Well, they can buy the houses they are currently renting and live in them, then they would benefit rather than the current landlord who just happens to have some spare cash for a deposit.Also you've destroyed all remaining trust in the UK government regarding business investment. You might wish to consider the unintended consequences of your suggestion.
I don't have a problem with a proper professional business that wants to develop a site for rental, and is prepared to maintain the properties and look after the tenants.
I do have a problem with Joe Average buying the odd house here and there as an investment, pushing up prices, and stopping the less well-off getting onto the ladder. Generally at the cheaper end of the market, cutting corners to stay ahead of the mortgage payments.
clockworks said:
I do have a problem with Joe Average buying the odd house here and there as an investment, pushing up prices, and stopping the less well-off getting onto the ladder. Generally at the cheaper end of the market, cutting corners to stay ahead of the mortgage payments.
https://www.rightmove.co.uk/properties/104870126#/https://www.rightmove.co.uk/properties/104870126#/
Greg_D said:
ARHarh said:
That I think explains it, if you make the sacrifice you can afford houses.
Exactly. If you are serious about getting on the hoisting market and are well guided by adults then you can afford to get on the ladder. No takeaways, latest iPhone, pcp Audi, expensive nights out, expensive personal items like haircuts, fillers etc etc... allied to not getting stuck in the rental trap means you can get a deposit together and buy.
Cue all the renters throwing their hands up in horror...
Part of it is self-inflicted for some, but there is also big structural issues which make things much harder than they used to be. There is a lot of people who work hard saving and getting on with things quietly, but of course all the focus goes on the ones drinking coffee 2x a day etc.
Groat said:
https://www.rightmove.co.uk/properties/76813125#/
Won't some poor downtrodden millenial buy me?? Pleeeeeease!!!!!
I'd buy that on me credit card tomorrow. Commute to W London will be a pig though, even at 50mpg. Won't some poor downtrodden millenial buy me?? Pleeeeeease!!!!!
Idea for my retirement though. Wonder what the neighbours are like?
BritishBlitz87 said:
No , but most of the scientists and senior crafts are on good money and about half came up through the apprentice schemes; the T&C's of the job are some of the best around, the work is interesting and the pension is very comfortable indeed. 40 years' service isn't unusual, I once saw someone with a 60 years' service pin! A shelf stacker is extremely unlikely to be promoted to managerial positions IME and the company treats you like a used cotton bud even if your immediate managers do care.
My first job was a shelf stacker, my most recent one was Head of Trading., but most of the scientists and senior crafts are on good money and about half came up through the apprentice schemes; the T&C's of the job are some of the best around, the work is interesting and the pension is very comfortable indeed. 40 years' service isn't unusual, I once saw someone with a 60 years' service pin! A shelf stacker is extremely unlikely to be promoted to managerial positions IME and the company treats you like a used cotton bud even if your immediate managers do care.What sort of lab work are you in that’s going to buy you a big family home in the Home Counties but that doesn’t exist in the North?
clockworks said:
Biggy Stardust said:
Just out of curiosity, where will all the tenants live now that you've completely killed the rental market?
Also you've destroyed all remaining trust in the UK government regarding business investment. You might wish to consider the unintended consequences of your suggestion.
Well, they can buy the houses they are currently renting and live in them, then they would benefit rather than the current landlord who just happens to have some spare cash for a deposit.Also you've destroyed all remaining trust in the UK government regarding business investment. You might wish to consider the unintended consequences of your suggestion.
I don't have a problem with a proper professional business that wants to develop a site for rental, and is prepared to maintain the properties and look after the tenants.
I do have a problem with Joe Average buying the odd house here and there as an investment, pushing up prices, and stopping the less well-off getting onto the ladder. Generally at the cheaper end of the market, cutting corners to stay ahead of the mortgage payments.
Tenants buying the properties would also push prices up. Same number of people, occupying the same number of properties.
At no point have you reduced the demand, or increased the supply. All you've done is change the financial model for putting one family in one home.
The issue as ever is there is not enough property to house the number of people needing a home. That is the principal driver of high prices.
clockworks said:
Well, they can buy the houses they are currently renting and live in them, then they would benefit rather than the current landlord who just happens to have some spare cash for a deposit.
Many don’t want to, or can’t.To go back to my tenants, they would have had a stamp duty bill of £35,000 to buy the house that they are renting, and they knew that they were only going to be there for three years.
Some people want the flexibility of renting, some want to try an area before buying, and others just like having no responsibility for maintenance.
You’d cause immense problems to solve a “problem” that doesn’t really exist. Rental yields for anywhere decent are tiny at the moment.
The problem is simple, everyone wants everything all at the same time.
You cant all have it. Someone will have to lose.
The govt don't want that to happen.
P*ss off the boomers with a tax or what not and their BTL portfolio becomes worth less.
Raise rates and new buyers will struggle more due to MMR. You also P*ss off the boomers again with their 7 figure BTL porfolios.
You can try and reduce the value of property for kids but the money has to come from the tax payer.
Its a lose lose. So the govt will just keep the plates spinning.
You cant all have it. Someone will have to lose.
The govt don't want that to happen.
P*ss off the boomers with a tax or what not and their BTL portfolio becomes worth less.
Raise rates and new buyers will struggle more due to MMR. You also P*ss off the boomers again with their 7 figure BTL porfolios.
You can try and reduce the value of property for kids but the money has to come from the tax payer.
Its a lose lose. So the govt will just keep the plates spinning.
Northernboy said:
clockworks said:
Well, they can buy the houses they are currently renting and live in them, then they would benefit rather than the current landlord who just happens to have some spare cash for a deposit.
Many don’t want to, or can’t.To go back to my tenants, they would have had a stamp duty bill of £35,000 to buy the house that they are renting, and they knew that they were only going to be there for three years.
Some people want the flexibility of renting, some want to try an area before buying, and others just like having no responsibility for maintenance.
You’d cause immense problems to solve a “problem” that doesn’t really exist. Rental yields for anywhere decent are tiny at the moment.
Agree that it's not really the problem though. The real issue is that its difficult and expensive to build in the areas people actually want to live in.
red_slr said:
The problem is simple, everyone wants everything all at the same time.
You cant all have it. Someone will have to lose.
The govt don't want that to happen.
P*ss off the boomers with a tax or what not and their BTL portfolio becomes worth less.
Raise rates and new buyers will struggle more due to MMR. You also P*ss off the boomers again with their 7 figure BTL porfolios.
You can try and reduce the value of property for kids but the money has to come from the tax payer.
Its a lose lose. So the govt will just keep the plates spinning.
You cant all have it. Someone will have to lose.
The govt don't want that to happen.
P*ss off the boomers with a tax or what not and their BTL portfolio becomes worth less.
Raise rates and new buyers will struggle more due to MMR. You also P*ss off the boomers again with their 7 figure BTL porfolios.
You can try and reduce the value of property for kids but the money has to come from the tax payer.
Its a lose lose. So the govt will just keep the plates spinning.
It's pass the parcel but the music will never stop
98elise said:
clockworks said:
Biggy Stardust said:
Just out of curiosity, where will all the tenants live now that you've completely killed the rental market?
Also you've destroyed all remaining trust in the UK government regarding business investment. You might wish to consider the unintended consequences of your suggestion.
Well, they can buy the houses they are currently renting and live in them, then they would benefit rather than the current landlord who just happens to have some spare cash for a deposit.Also you've destroyed all remaining trust in the UK government regarding business investment. You might wish to consider the unintended consequences of your suggestion.
I don't have a problem with a proper professional business that wants to develop a site for rental, and is prepared to maintain the properties and look after the tenants.
I do have a problem with Joe Average buying the odd house here and there as an investment, pushing up prices, and stopping the less well-off getting onto the ladder. Generally at the cheaper end of the market, cutting corners to stay ahead of the mortgage payments.
Tenants buying the properties would also push prices up. Same number of people, occupying the same number of properties.
At no point have you reduced the demand, or increased the supply. All you've done is change the financial model for putting one family in one home.
The issue as ever is there is not enough property to house the number of people needing a home. That is the principal driver of high prices.
So much better to take what someone has worked for & give it to someone who hasn't worked for it.
Groat said:
https://www.rightmove.co.uk/properties/76813125#/
Won't some poor downtrodden millenial buy me?? Pleeeeeease!!!!!
One word. Cladding. Won't some poor downtrodden millenial buy me?? Pleeeeeease!!!!!
Surely it's ultimately just supply and demand. There are too few houses for the people who want them in many areas. As well as that there is a lot of housing that isn't really suitable for how its used. Inner cities full of low rise terraces, big housing estates in the middle of nowhere, "twee" bungalows with no parking and small awkward rooms.
I think we would do better to plough a lot of that down and build nice, purpose built apartments and modern houses. Not pretty town centres or buildings of genuine historic interest but endless rows of drab terraces and slums.
Allow more self builds where and how people want to live rather than where and how Taylor Wimpey etc want to sell them.
I think we would do better to plough a lot of that down and build nice, purpose built apartments and modern houses. Not pretty town centres or buildings of genuine historic interest but endless rows of drab terraces and slums.
Allow more self builds where and how people want to live rather than where and how Taylor Wimpey etc want to sell them.
BritishBlitz87 said:
The reason all those 80k terraces are 80k is that there are no good jobs within a reasonable commuting distance of the godforsaken pit village said 80k terraces are found in, so anyone who has the means to buy them, won't have the means to pay the mortgage off.
I'd love to move to Accrington and have my own 3 bed semi for 150k,I just don't want to spend the rest of my working life stacking shelves for a living because the nearest lab is three hours away.
you can buy a 2 bed terraced house round here for £110k and the last time I tried to find a job it took 2 applications and I landed a £35k job. I have no qualifications but I did have a lot of experience. Don't tell me it can't be done.I'd love to move to Accrington and have my own 3 bed semi for 150k,I just don't want to spend the rest of my working life stacking shelves for a living because the nearest lab is three hours away.
survivalist said:
Northernboy said:
clockworks said:
Well, they can buy the houses they are currently renting and live in them, then they would benefit rather than the current landlord who just happens to have some spare cash for a deposit.
Many don’t want to, or can’t.To go back to my tenants, they would have had a stamp duty bill of £35,000 to buy the house that they are renting, and they knew that they were only going to be there for three years.
Some people want the flexibility of renting, some want to try an area before buying, and others just like having no responsibility for maintenance.
You’d cause immense problems to solve a “problem” that doesn’t really exist. Rental yields for anywhere decent are tiny at the moment.
Agree that it's not really the problem though. The real issue is that its difficult and expensive to build in the areas people actually want to live in.
If your property increases in value but rents don't rise by a similar amount then your money might be better invested elsewhere. That's how you use yield.
It is a factor in the return on investment though.
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