https://www.bbc.co.uk/news/business-...ign_type=owned
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https://www.bbc.co.uk/news/business-...ign_type=owned
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https://www.bbc.co.uk/news/uk-scotla...r_name=twitter
Rent cap working a treat. [emoji849]
It’s not the only issue unfortunately. The UK govt have been forcing landlords out the industry for a decade now. This is the results you get.
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BBC 1 just now
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And BBC 2 just now has another show about the failure of the property market.
https://www.bbc.co.uk/iplayer/episod...es-1-episode-1
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https://news.stv.tv/east-central/edi...essness-crisis
Edinburgh declaring a housing emergency.
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We need a bit of everything but I agree that more dense housing, especially near the centre of Edinburgh is needed. Most developments have a proportion of flats as you enter the development.
People still want gardens when they have a family and there is no shortage of space. We have enough land. It’s political will that is lacking.
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You might like this simply for it being one of the worst things written on housing. It's went viral for being hilariously bad, it is the Torygraph after all. She says we don't need new houses the problem is houses are too expensive ehhh...
UK also has the second lowest number of unused housing stock, under 2% Iceland is only lower and average is 10%.
She'll be glad she's blocked since many homes and I'm not surprised someone has found she owns a £3.5 million pound home
https://archive.ph/IZiTg
According to Shelter there are over a quarter of a million long term empty homes in England.
There are 43,000 empty homes in Scotland.
https://www.bigissue.com/news/housin...ere-in-the-uk/
I'm certainly no expert, but from what I see spacious family homes are being built at a significant rate around Edinburgh already. Anecdotally a little slower right now because the market is so stagnant and so builders presumably aren't throwing up houses as quickly as they can when people aren't as quick to buy them with interest rates as high as they are.
But in terms of continuously growing developments/areas: Cammo, Queensferry, Wallyford, The wisp, Shawfair, Calderwood, Kirkliston, Winchburgh all seem to have sprung up with hundreds/thousands of new family homes.
I think that there are some positive things happening, we just need more.
To speed builders up, I would start taxing the properties from 18 months after planning is granted.
If they are not ready to build after planning is granted then they should be required to sell the land on.
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30 mill homes so that's closer to 1%. Germany, Ireland, France and Holland have around 8%. That would mean millions of vacant homes, slashed prices and no housing problem.
With half a million net immigrants in the next few years and a fraction of that in homes being built. We'll soon have zero available homes. It's a disaster
I'm looking to move to a new development that won't be finished for c.3 years. Planning was probably approved some time ago too I would imagine. I think Developments do, and always will, take longer than 18 months from planning to completion just through normal process.
I guess they could just create admin by applying for permission to build 100 smaller developments and spread out their applications over several years. :greengrin
Agree, I’ve just moved into a new build estate and I think they’ve only sold two houses in the last three months. Building houses faster won’t change that unless they’re giving them away under market value.
There’s been several houses here that have gone to reserved then a few weeks later have become available again, I guess the buyers have struggled to sell their own house or can’t get a mortgage.
When we were looking some builders wouldn’t even take a deposit from us unless we sold our own house and moved in to rented which we weren’t willing to do.
Building more houses lowers the price, I know that is obvious but some don't get that. The interest rates are probably the biggest deterrent, they should drop early next year although it will take a year for them to drop to nearer what they were pre pandemic.
If there is 250k empty homes, 250k were built last year and net migration is estimated to be 500k in the next 2 years, there soon won't be a house spare. Going to see homelessness numbers breaking records unless someone gets their finger out on housebuilding
Yet the only thing that’s actually lowered prices in the last 30 or so years has been the cost of money or availability of money.
The 89 crash was at least in part due to MIRAS removal…ergo having a mortgage cost more.
The 2008 crash was caused by a liquidity crunch (no lending = no borrowing)
This time it’s due to super fast interest rate rises. Cost of ownership up = price paid down.
On the flip side you have had a myriad of government interventions that have added liquidity to the market Help to Buy, Stamp duty holidays etc etc. and super low interest rates that have driven up prices over a very long time.
Then you add in punitive stamp rates higher up the ladder that help to squash availability in the secondary market and you can see that saying the volume of building is directly correlated to prices, and is the primary driver of them, is ignoring a huge number of other factors and drivers on the overall market.
It’s hard to imagine prices would have been so stretched if the government had left well alone and interest rates had been at ‘normal’ levels for the last decade.
So sure building numbers do matter, or actually maybe more the mix of building matters (as Edinburgh has just proven building more than anyone else does not a housing crisis avert).
But the cost of housing is not simply driven by new build housing numbers (not least due to the fact new builds are often priced as premium products and thus raise the average costs). It is of course A factor but just building more is far from a silver bullet.
It's definitely not only decided by building more many things change the market, as i saidthe biggest factor just now is inflation. The list of events you put up were major events that changed prices. But more houses obviously help lower prices.
Also not helping is British people want big houses with gardens whilst in Europe there is much more good quality apartments. Its depressing seeing these semi detached villages with next to no social housing and ludicrous prices.
Does Britain not typically have smaller houses than elsewhere?
But looking at Scotland the number of dwellings has risen roughly inline with the number of households in the last 20 years so you could argue that the supply has kept up with the demand.
Yet prices have increased substantially. So it could be argued that actually the supply side is the least of the factors and it has been other influences that have caused the increase.
Of course the mix of households and the type of supply etc. need to be factored in but ultimately my point is that largely focussing on new build numbers is not really the correct way to go about solving the issue.
It would be substantially better to ensure the myriad of other factors get equal weighting in the discussion.
I can agree tho that empty homes (3% in Scotland) and even second homes (1% in Scotland) are not the problem or the solution at a macro level.
But we can't fix the biggest problems easily. Global pandemic and war caused our inflation. A war in the middle east won't help gas prices. What we can fix and easily is building houses which will of course ease prices. Fact is we need to build anyway net migration will decrease stock and raise prices further
A John Burn Murdoch article has been up previously on the subject, really good graphs on cities that built huge numbers to lower costs
https://archive.ph/jv1iH
All economists agree supply increase will decrease prices
https://www.economicsobservatory.com/how-can-uk-policy-makers-make-homes-more-affordable
They won't build enough to change the market though, we need millions. The FT asked 80 economists how much house prices would decrease if we built 300k houses per year for 20 years, the average was a 10% decrease.
They extra could possibly be eaten up by net migration so we see no decrease
I don’t see the issue with people wanting a nice house with a decent garden, we spend most of our lives in the house nowadays so why would you want to be stuck in a tiny apartment.
Maybe if I lived in a warmer part of Europe where I could spend a large proportion of the day outside I’d be happy with an apartment but not in this country!
I probably now live in one of these depressing semi detached villages as you call them and I’ve never been happier.
The government or councils should be building social housing rather than forcing developers to stick a few token homes at the front of their developments.
British houses are some of the smallest in Europe?
https://shrinkthatfootprint.com/how-big-is-a-house/
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We want big detached houses but what we get is big estates with tiny houses and nothing else in them. I didn't realise how small our detached houses were. 20% of us live in apartments in the UK, Germany is 60% and 50% in cold sweeden live in apartments but they have a better level of housing satisfaction when surveyed.
Low density housing means huge sprawls that's worse for the environment and also leads to you needing a car.
https://www.bbc.co.uk/news/uk-scotla...iness-67305146
https://uploads.tapatalk-cdn.com/202...de0b60fb15.png
Well who could have predicted that?
Article is worth a read.
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I got planning over a year ago for a site and I’m still getting paperwork and stuff done before I can build.
I’d build tomorrow but it’s a bit of a minefield
https://x.com/jburnmurdoch/status/17...dxJXScFNwz8V4A
Not housing but principle is the same.
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https://news.stv.tv/scotland/second-...ax-in-scotland
Progress.
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Yep, once more highlighting how we can't trust the private rented sector, particularly it's corporate investment division to act responsibly.
From the same article,
"The two councils face some housing problems in common, but also contrasting ones. Argyll's are based around the rural economy and its appeal to those who want a second home, or to own a holiday let. That has pushed up prices for ownership and for rent, in a county which does not have high earnings".
"Getting hold of land for development can be a problem where landowners are reluctant to co-operate".
"Edinburgh's housing problems have a lot to do with its success, in attracting people to live and work there, drawing in investors, a very large number of students and also tourists. Short-term lets are a challenge for Argyll and Edinburgh more than most others, where AirBnB landlords have turned so many homes into visitor accommodation".
"Council house sales, starting in the 1980s, allowed tenants to buy the homes they rented, at reduced cost. That was seen by some as hugely successful, in giving people a stake in their homes, more security than they had as tenants and an asset base. More widely, it stripped a large number of properties out of the reach of those who rent, and often the best quality ones.
Since then, councils and housing associations have struggled to meet demand with new building and refurbishments. The number of those who look to them for social housing - broadly speaking, below market prices - far outstrips the number of homes available.
That is the main cause of homelessness, where Edinburgh is housing 5000 households in temporary accommodation, and there are 200 applications for the average social tenancy."
"The rent freeze does not apply to new tenancies. So landlords use the opportunity of new tenancy contracts to raise rent in anticipation of future rent controls. And new contracts are often required when one person in a shared flat leaves and another comes in. There's more explanation in the Disclosure investigation for BBC Scotland".
"As usual, it is worst for those at the precarious margins, who are unable to get the housing they need. Housing benefits are vital for many, but insufficient to solve the problem. Those people's problems are connected to the wider private market - to a private rented sector in which rents for new tenancies are rising faster than any other part of the UK.
And the growth of private rentals is connected to the scale of demand outstripping supply of homes to own in the capital, which continues to push up prices, far beyond the starter flats and into every part of the market.
Basically, it's all down to greedy landlords, central and Scottish government failure over many years to invest in social housing and the an obsessive predisposition to promoting home ownership, which drives up the prices of property. That creates the cycle of unaffordability which faces many young people in employment, who are obliged to rent.
A large percentage of Edinburgh private rentals are controlled by a handful of groups. You need these massive groups to have a conscience and then the supermarkets, then power companies ect ect.
Unfortunately in the real world with capitalism every company and business maximises profits and will charge what people will pay.
It's up to the government to set rules or change the market to keep prices down.
https://podcasts.apple.com/gb/podcas...=1000634399603
Horrific listening.
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https://x.com/redditchrachel/status/...dxJXScFNwz8V4A
Yet another new housing minister. [emoji849]
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https://x.com/aarmstrong_says/status...dxJXScFNwz8V4A
16th housing minister since 2010. Lucky housing isn’t that important.
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https://www.heraldscotland.com/news/...v-rent-freeze/
Misleading headline. It should say ‘because of’ instead of ‘despite’.
If this policy isn’t gone by next Holyrood election I won’t be voting for the SNP or Greens.
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You're right, it's hugely misleading. These figures relate to new tenancies, the vast majority of renters in continuing tenancies are capped at 3%. Not perfect I know, but the story and the headline reads as though all tenants are suffering these levels of increase.
It is of course entirely up to you who you vote for.
I disagreed with you before it was implemented and you were right in what happened. I've since seen it has happened pretty much everywhere its been tried. The rises are not sustainable. The good work on Airbnbs will easily get swallowed up by this. It'll also put off what we desperately need, development
Lothian showing the highest average rent for a two bed property at a whopping £1192 per month, wow just wow. Greater Glasgow showing the biggest increase by 22% since last year and 86% since 2010. Lothian being a close second.
I saw a 2 bed flat advertised today in Brunswick Road.
£1850 a month. Absolutely brutal
The 'double deposit' is the killer for many in Scotland.
You can just about save for a deposit. You can get a mortgage agreement in principle. However the mortgage provider will only loan you up to the home report valuation. I'm not sure on the current figure but for a while the average Edinburgh home was going for 15-20% above that. So say you have a house valued at £200K, a deposit of £20K then your lender will 'only' lend you £180K. That can potentially leave you looking for another £30-40K on top of that from your own resources.
Good luck finding that when you are shelling out 4 figures every month on rent. The whole system is broken.
The idea that home ownership is stagnating across the board and falling among the younger generations because people are choosing to rent rather than buy is flawed.
Yes that’s definitely going to be difficult or more than likely impossible for most.
We moved in the summer but didn’t get any offers above the home report so I didn’t think that was as much of an issue now but we weren’t dealing with the centre of Edinburgh.
The double deposit probably explains why so many young folk we know are buying in huge new build estates like Wallyford.
https://x.com/mwilliamsht/status/173...dxJXScFNwz8V4A
Edinburgh did this a couple of weeks ago and I’m not sure a single thing changed?
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As a developer, I have no idea why the government abolish the offers over system.
It just creates a million problems.
Yes you get more money for your house but then you loose it when buying your new house.
I’m sure there would be problems that would arise or reasons you can’t but thousands of people end up paying well over the odds or ending up heartbroken.
Then when a property sells for £20k over the value. Say £370,000 instead of £350,000. Surveyors then use the £3700,000 as the valuation for the equivalent property in the street.
So it’s a double whammy.
Things are a bit calmer now, anecdotally and from my experience selling (and monitoring similar houses selling) recently anyway. Maybe not the case everywhere across Edinburgh, but the average achieved is more around 4% over, so some areas will be in that 10%+ zone and some will be 0% or negative.
We sold ours for home report value after 2 bids from people unwilling or unable to go above for the reasons you highlight and were happy with that price so decided not to push any longer.
The value increase and the interest rates bringing about higher monthly payments are what looks incredible to me, we bought our house with a 10% deposit (new build, so no home report discrepancy to deal with*) and had a mortgage of £970 - if the couple who bought our house now done so with a 10% deposit the mortgage would be £1,800+.
*New builds have a similar issue though where you then pay the deposit again for carpets, flooring, upgrades, etc.
Although again that's calming, as house builders have plenty incentives to hand out currently.
I see the student accommodation at Jock's Lodge has had planning permission granted after the developer appealed to the SG who have now overturned the councils rejection.
The whole drag where the Willow/Old Jock's Lodge pub is.
Replacing the Willow, Limelite, Ball Room, bookies etc. Owner of Limelite will be running a new venture in the development.
Tbh it's had a lot of opposition and I understand some of the lamenting the fact that a pub or inn has stood on the site for centuries. However the space looks increasingly run down and whilst I'm a huge supporter of any drive to build more social housing I'm unaware of any rival bid to do so on this site so it's an irrelevant argument that will be overused.
Might have been due to the 1,000 objections made and the three local councillors for the area being against it after canvassing their electorate?
It’s also going to be 7 stories tall which is a rather gargantuan building for that site.
Owner of Limelite will be happy tho…he gets a brand new mega pub out of it.
Were you thinking of this level of ugliness?
https://uploads.tapatalk-cdn.com/202...848accc63b.jpg
https://theedinburghreporter.co.uk/2...-housing-site/
I see our councillors are digging another hole for themselves .
A tree preservation order on building plots with planning permission and the roads , drains etc already in situ. :confused:
Housing emergency in Edinburgh, rents flying up, homelessness growing and large population growth expected in the future. But houses get objections from people who have a house already, I'm alright Jack. We need a planning overhaul soon, the one place UK is world beating is awful planning.
I don't understand the constant objections to student housing. These people are paying 10k+ a year for education, usually close to 1k a month in rent for these tiny rooms. If they don't get these they will outbid your average family for a rent every time. We can either let them buy every flat available or put them in huge rabbit hutches.
I notice Glasgow is building an 800 room 36 story skyscraper for students. We should do the same away from the centre perhaps down Newhaven beside the tram
https://www.heraldscotland.com/news/...r-put-forward/
Absolutely. We just need more houses full stop.
Our problem is that everything just takes so long. I was down at Ferry road yesterday and the have now started work on the new houses where the old Craigroyston ash pitch used to be. That has been ear marked for houses since the school closed but it’s only getting built on now? Why on earth has it taken so long?
Fettes police station is being sold off now. That’s a massive piece of land that could fit a lot of houses/flats on. I bet it’s at least ten years before a brick is laid on that site.
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The site just up from Fettes Police station on Craigleith Road, the old Victoria hospital, has been closed and the site cleared for about 15 years.
Every so often the various uses get brought up and discussed and put away for another survey , study, or consultation.
Still it keeps council officials in a job. :confused:
Dissapointing to hear that The Ball Room will be getting knocked down for student flats. Spent most of my teens in there playing snooker when it was called The Angle Club and then The New Yorker. If I lived that side of town again I’d genuinely not know where I could go for a game of snooker. Saying that locations are thin on the ground throughout the city.
Same in the west of the city. Snooker just not as popular these days.
https://www.edinburghlive.co.uk/news...r-26006043.amp
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I’ve got some old maps, 1817 Kirkwood plans of Edinburgh and Jock’s Lodge is noted on that corner back then.
I hope the name is not lost, I remember it as a marker on my way to Easter Road on the 44 bus , back in the days when you got your ticket punched :greengrin
Read something about different planning timescales in Europe, UK has years on everyone else. Planning, surveys, reviews plans, disputes, discussions someone will be making cash out. Think the housing emergency is like the climate emergency. Things need done today not talked about, we just aren't up to that.
Covid showed us similar, needed action now. Instead we got plan, look elsewhere, talk, then panic and still give jobs and bungs to mates businesses before anything meaningful is done. Sorry about the tangent
Could the council or government build student flats the scale of Glasgow. Use the huge profits to build social housing and amenities for the areas with high influx of population?
Seem to have been considering this in 2021 but ruling it out in 2022.
It’s got less attention because of the income tax changes but there were some serious steps taken on housing in today’s Scottish budget.
The overall housing budget was cut by nearly 30%.
The budget for new homes is now half of what it was in 2022-23. Nearly £200m taken out for this year coming, a similar amount already taken out this year
The budget for fuel poverty and housing quality is going to be cut to 8% (eight) of what it was last year.
If it wasn’t working before it’s not going to be working any better now.