Tag Archives: UK housing market

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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House prices are becoming red hot, and this is scary

House price growth is accelerating in the UK and the rest of Europe, but it is far from healthy growth. The consequences of lax rules on lending to house buyers could be devastating.

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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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Rishi Sunak’s stamp duty holiday will deepen inequality

The Covid-19 pandemic has forced many British people to look for the first time at their homes in a new light: as a place to live, rather than simply an investment.

The lockdown has served as a time of reflection on their home’s advantages and disadvantages and perhaps a reassessment of priorities.

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Covid-19 should stop the government’s house price subsidy

Before the new coronavirus pandemic, one of the main ways in which the UK’s Conservative Party boosted consumer confidence was pushing house prices up with the aid of various taxpayer-funded schemes such as Help to Buy.

But as the damage done by Covid-19 to the economy heaps pressure on the public purse, should the taxpayer still generously fund schemes that mainly serve to boost house prices and the fortunes of a few big companies and their already well-off clients?

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Cooling housing markets will prevent interest rate rises

Housing markets in certain developed economies are beginning to lose steam, prompting worries that house prices might see corrections, especially in countries where they had been overheating.

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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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UK household wealth growth about to make a U-turn

The Bank of England has reason to pat itself on the back. During the financial crisis of 2007-2009, things could have taken a very ugly turn if it hadn’t cut interest rates to record lows and hadn’t started printing money.

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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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