Tag Archives: UK housing crisis

How to make renting attractive in the UK

Central banks have been busy saving the West from its own excesses since the great financial crisis of 2007, but in the process, they have made housing unaffordable for young people, particularly in the UK.

House prices have surged in many UK cities, with record low interest rates and money printing making homes more affordable for “investors” and less so for those who actually need them as places to live in, as opposed to assets to speculate on.

Despite record low mortgages and various subsidies, homeownership is increasingly unaffordable for a rising number of people.

The consequence is deepening inequality, which makes the UK look more like a feudal, rather than modern, society.

One of the ways to tackle the so-called “housing crisis” would be to make renting an option perhaps as good, if not better, than buying a property.

Here are four ways in which the UK government could go about making renting a truly affordable option for young people in the UK – and a few of the reasons why it will never do it.

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Mortgage guarantee could sow the seeds of trouble

The UK government awarded hard-working medical staff a meagre 1% pay rise in the most recent budget, all the while splashing out on yet another indirect subsidy for house prices: the mortgage guarantee.

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The UK government must tackle housing, not Brexit in 2018

This year, the UK government must come up with solutions to the main crises that eat away at some ordinary Britons’ well-being. One of these is the housing crisis, which continues unabated despite the billions of pounds thrown at the problem.

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Brexit vote dramatically lowers Britain’s attractiveness

I know I have said it before, but at the time it was just a hunch: the price to pay for an “un-cool Britannia” after Brexit will be steep. Evidence for this is beginning to show. A survey released recently shows how fast Britain is losing attractiveness in the eyes of the world.

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Brexit masks London’s status as safe haven for corrupt money

The Brexit vote must be manna from heaven for those seeking to hide their illicit gains in London. Busy with all their posturing and negotiations, politicians will have no time to curtail the criminals’ activities.

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Theresa May indicates she is unwilling to solve the housing crisis

Many people hope that the UK Prime Minister’s rhetoric calling for a fairer society means she will address what is by far the biggest inequality in today’s Britain: the housing crisis. But a recent speech, in which she outlined her plan for Brexit, seems to indicate that she is unwilling to really tackle the issue.

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In the UK, you can buy a property and still be a tenant

Perhaps in no other European country is the obsession with homeownership so entrenched as in Britain. The ambition to “get on the property ladder” underpins almost every young person’s dreams, pushing young people to make sacrifices to save for a deposit and then take on a big mortgage just to be able to say they own, rather than rent, their home.

But do they, in fact, own it? Increasingly, property ownership is becoming an illusion that makes people part with cash they can ill afford to spend.

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Correction of 50% for London house prices possible

As the effects of the vote by the UK people to leave the European Union still unfold, more and more economists say property will take a serious hit. A 50% cut in property prices in London is among the possibilities mentioned by one analyst.

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In 2016, watch out for house price deflation

The word “deflation” is on everybody’s lips now, with falls in consumer prices the main worry of central bankers and their ilk. But are things really all that bad, and what other type of deflation should we worry about in 2016?

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UK interest rates could rise despite the Bank of England

There are few things that are less certain right now than the path of interest rates in the UK. That’s despite the Bank of England’s attempts to reassure investors that it will not raise its key interest rate anytime soon from the record low level of 0.5%. Even when it does, it will do so in a gradual manner, the central bank says.

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