The Independent newspaper recently published in its online version the headline:
“More than 8 million people in England are living in unaffordable, insecure or unsuitable homes, the report says.”
If accurate, this predicament is unacceptable and in urgent need of remedying.
There have been many claims of similar housing crises over the past decade in the media. These claims suggest that all is very far from well in the housing sector. The adage goes, there’s no smoke without fire!
This is why over the decades past and as I’m a now retired valuation surveyor, I have views on the reasons for these failings, particularly as they adversely affect poorer communities.
Because of this I’ve devised a new and better way to deal with the currently unaffordable level of house prices and other housing issues because purchase prices currently being claimed as being ‘affordable’ are clearly not really affordable at all.
Once you take a look into this, it should become crystal clear that it is the poorer buyers whom are propping up house prices for the rest of the home owners.
Why is this so? Because it is they who must borrow the humongous sums of money, by mortgaging the very properties which they need to live in (at extreme levels of borrowing), so that the present very high prices prevailing in a so-called open marketplace may be maintained. Who effectively gains the most from this?
It is primarily those fortunate enough to already have substantial property assets who enjoy a healthy and almost guaranteed rise in the capital values of their relatively extensive holdings. Secondly it is the banks and financial organisations which gain from earning interest on the substantial loans they arrange. The profits all depend on the ability for both sides of this equation to be able to recoup large financial rewards each time these assets sell, without having to do much to earn such profitable gains.
Borrowers today by comparison, have increasing job insecurity issues, especially borrowers on the lower rungs of the property ladder who have to commit to high mortgages by taking on burdensome, risky and long-term borrowings. These families and individuals are the ones who need relief, by way of a lessening of their large and onerous borrowing commitments.
It is time the whole screwed-up house-selling regime being played out by the historic role of estate agency is re-balanced, such that those wishing to make money from owning property are seen as causing the excessive un-affordability issues experienced by an increasing number of aspiring but poorer home owners in this country.
Is there a political party in the land that might contemplate such a re-think? It seems the jury is still out on that one!
Those needing housing require an efficient and fully functional housing marketplace for people wishing to move house so as to reasonably afford to buy, or alternatively rent, their next housing accommodation.
Judging by the slowdown of sales transactions shown in the recent sales completion statistics earlier in the year, efficient services such as these are simply not available at present.
For anyone interested in the best and only way to correct this unacceptable shortcoming, please read / study the proposals I am tabling within: The House Price Virtuoso Solution.
The specific page covering The House Price Virtuoso Solution is at:
The background leading to this logically deduced conclusion is available on the whole web site:
I would be happy to engage in online discussions about the technicalities and/or the necessary strategies needed in order to reach the conclusions set out. How, precisely, local housing markets within the whole of England and Wales may be improved for the benefit of owner-occupiers, private tenants, and everyone using all forms of housing right across our Country is fully set out there.
Posted by: Peter Hendry, Housing Valuation Consultant
Author:– The House Price Virtuoso Solution
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