Housepresso 12 June 22
Right to Buy: Right or Wrong?
Right to Buy works if and only if those homes taken out of the social housing pool are replaced, sadly history suggests that they are not and we do not see from the statements and promises made today that they will be replaced tomorrow. We believe there is a better way and that way is through fractional ownership.
This week the Prime Minister announced that 2.5 million tenants renting their homes from housing associations will be given the right to buy them outright. This ‘new’ policy is an extension of the original Right to Buy scheme launched 42 years ago by the then Prime Minister Margaret Thatcher
Whilst the homes sold is good news for the buyers, unless they are replaced it is bad for society.
House prices rise for 11th month in a row
Average house prices in the UK are now £289,099 according to the latest data from the Halifax and have risen for the eleven months in a row, but has the race for space made climbing up the property ladder more difficult than getting on it? Detached house prices have risen by £50,000 in the last year which is five times greater than the increase in the price of flats, will those lucky enough to get on the housing ladder become stuck on the bottom rung?
Housing Market about to turn?
The latest RICS housing market survey reported a drop in buyer demand, whilst we appreciate that one swallow does not a summer make, is this the first sign that the party is finally over, or were we all just focused on our Jubilee getaways?
Is the private rented sector shrinking?
A research report jointly produced by the BBC and the estate agency trade body Propertymark found that the private rented sector appeared to be shrinking rather than growing. This seems at odds with the growth in Generation Rent and the difficulty renters are having getting a foot on the housing ladder. Twindig digs into the detail
Twindig Housing Market Index
In the week that saw house prices rise for the 11th month in a row, and Right to Buy re-launched and extended to housing associations as well as local authorities the Twindig Housing Market Index rise by 0.1% the slightest of margins to 75.1 this week.
It seems that the extension of Right to Buy to Housing Associations and the battle cry of Benefits to Bricks did little to cheer residential investors this week.