Sunday, 25 May 2014

Houses for Building a future

The rate of house building in the UK leaves a lot to be desired. Since the early until the 1990's we had some degree of building homes that while it never exceeded needs it wasn't far short. The council's stopped building houses after the Thatcher led government removed  the financial incentives. I have seen figure suggesting during the early part of this century all the UK councils combined in one year only built 180 house's. That is extraordinary all councils throughout the UK couldn't build more homes because central government didn't offer any incentive. Labour and Conservative will blame each other but I myself blame the government of the Day. The person who is homeless doesn't care who is in power, he just knows he or she or in most cases it's families which means THEY only know they can't afford the exorbitant prices and look to the council's to help.
Have we as a nation lost our moral compass? Everyone deserves a roof over their head. I don't want to see us back in the 1970's with rent controls but there must be some common ground. To see house prices and rents keep rising as they do something must be done to keep them in check. One source of inflating the values is buy to let mortgages. The reason people are diving into buy to let is low rates of return on gas at the bank. I get one tenth of one percentage point on one account so I know how low returns are. I see daily on programs like BBC' s Homes under the hammer returns of ten per cent are the norm.Ten per cent and they get tax relief to do it, criminal? no but almost. The government cut off the council's incentive to build and create high rents with the other hand. Odd but true. Fact is often stranger than fiction and when it comes finances. How can this be changed? Tax? Interest rates?  The way I see it is thus raise rates on buy to rent mortgage' s tax is a possibility but deposits on buy to let, raise them to fifty per cent and downfalls portfolio rates get above fifty per cent capital. After all I can remember black Friday when interest rates soared and ruined many a dream.
Labour recognises there is a problem but wants to offer rent controls Conservative don't want to even recognise we need Lowe priced homes. They think the market will sort itself out. I say it won't, it needs some top down leadership, some stability and a lot more houses to reduce the temperature in the market place. It's not easy but get local authorities back building good quality affordable homes and it will cut some slack, add some changes to buy to let and that will reduce some of the heat out of the market. I doubt if any of these things will ever happen but it is food for though.

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