Time to switch off foreign investment in the UK housing market?
November 17, 2015
This story has understandably slipped under the radar in the light of the terrorist attacks in Paris.
The government has sold off £13bn of former Northern Rock mortgages that taxpayers acquired during the financial crisis. It’s one of the final pieces of the jigsaw from the bailout of the failing banks during the credit crunch 2008. It will be followed in the Spring by a sell off of Royal Bank of Scotland shares to the public.
Chancellor George Osborne states that this “demonstrates the confidence investors have in the UK.” And over the last few years the UK, and London in particular , has seen massive investment in the property market. Reports of Russians moving their money away from the rouble, investors from the Middle East have spent their oil money and London house prices have become unaffordable for most Londoners.
A short message to London estate agents
So, as an estate agent in London I suspect your loyalty is divided. You will want to sell your stock as highly as possible to buyers from all and any nationalities, but will also want affordability for the local people.
In my view you can be both of those things at once. You can be a campaigning voice, someone that adds their name to the right petitions, makes the right comments on social media and the forums and yet still go on with your day job of making money as an estate agent.
A short message for everyone else
Affordability has become a real issue in the United Kingdom housing market. The government has proposed a massive house building programme, new cities being built and a return of Right To Buy (with caveats for social housing thrown in) since being elected. This problem is now critical, we have moved away from being a nation of homeowners and generation rent is paying off someone else’s mortgage, not their own.
It’s time to really push on with these housing initiatives. I’ve blogged many times before about the chronic shortage of housing. I’d suggest you look at the housing programmes that are going on in your local area, speak to the planners and the councillors and add your support. Every local authority has to come up with a medium-term housing plan to play their part. And you can play yours.
You May Also Enjoy
Freehold and Leasehold Reform Act-lessees can control their own destiny
Matthew Pennycock, Minister of State for Housing and Planning, has made a Parliamentary Statement regarding the future progress of the Freehold and Leasehold Reform Act 2024. The Government have formally recognised the “significant complexity of the task” and that the legislation was rushed in at the end of the last parliament and as a result…
Read More 
Rightmove’s weekly mortgage tracker 22/11/24
The current average asking price of a typical first-time buyer property is £225,340. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was…
Read More 
The Architecture Of Attention Behind Social Media Addiction
In the digital age, social media platforms have revolutionized how we connect, share, and consume information. Behind their sleek interfaces lies a sophisticated architecture of persuasive technology. These platforms employ intricate design patterns and technical elements to capture and hold user attention. From subtle visual cues to complex algorithmic systems, every feature serves a calculated…
Read More 
2025 Predictions for the Private Rental Sector
Allison Thompson, National Lettings Managing Director, Leaders Romans Group (LRG) “As we approach 2025, the lettings industry is entering a phase marked by stabilisation and opportunity. Rental inflation has slowed to an average of 3-4% for new lets, reflecting the effects of affordability constraints; renters’ budgets are beginning to limit how much rents can rise.…
Read More 
Response to Matthew Pennycook’s Statement on Leasehold Reform
Yesterday, Secretary of State Matthew Pennycook made a Ministerial Statement on the future of leasehold reform. Responding, Mark Chick, director of ALEP and a Partner at Bishop & Sewell LLP said: ALEP welcomes the ministerial statement which puts in place a timeframe and some objectives for the implementation of the Leasehold & Freehold Reform Act.…
Read More 
Essential Garage Storage Solutions for Small Spaces
Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1. Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More