The House Price Virtuoso Solution is the key to fairer house prices

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. As the adage goes, there’s no smoke without fire!

This is why over the decades past, as a now retired surveying practitioner, I have considered the reasons for these failings, particularly as they adversely affect the poorer communities.

I’ve devised a new and better way to deal with the difficulties of the currently unaffordable level of house prices and associated housing issues because purchase prices being claimed to be ‘affordable’ are clearly not truly affordable.

Once you really look, it should begin to become crystal clear that it is the poorer buyers whom are in reality propping up house prices for all the wealthier home owners.

Why this is so is:- it is they who must borrow humongous sums of money, by mortgaging the very properties which they need to live in (at eye-watering levels of borrowing), so that the present very high prices prevailing in the so-called marketplace may be maintained. Who effectively gains the most from this?

It is primarily those fortunate enough to already have substantial property assets and who enjoy a healthy and almost guaranteed rise in the capital values of their relatively extensive holdings, so that when they choose to sell these they can recoup large financial rewards without having to do much to earn such 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 desperately need relief by way of a lessening of such large and onerous borrowing commitments.

It is time the whole out of kilter house-selling regime set up by the historic role played by 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!

After the Brexit issue has finally been resolved, we will need an efficient and fully functional housing marketplace for people wishing to move house so as to afford to buy, or alternatively rent, their next housing accommodation.

Judging by the slowdown of sales transactions shown in the recent sales completion statistics, 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 and study the proposals I am tabling and contained within The House Price Virtuoso Solution.

The background leading to this is available on the following web site:

Home Page – improvethehousingmarket.co.uk

The specific page covering The House Price Virtuoso Solution is at:

The House Price Virtuoso Solution

I would be happy to engage in online discussions about the technicalities and/or the necessary strategies needed in order to reach the conclusions of precisely how to improve local housing markets within the whole of England and Wales for the benefit of both owner-occupiers and all private tenants of residential property in our country.

Peter Hendry
Author of The House Price Virtuoso Solution (otherwise known as The Hendry Solution)

How best to provide rented social housing accommodation for those currently needing it

Instead of building more rented social housing in concentrations on housing estates we should build these as integral parts of all the new-build communities we construct.

Those renting socially-provided housing would then be seen as a part of society and could be taken into the bosom of that society.

If the country actually does need as much as 100,000 extra houses per year for the social rental sector, as has recently been claimed, it would be essential, both from a planning viewpoint and a society one, that those whom are dwelling in them should be located within our communities and not sectioned off as if to be marginalised on separate and distinct estates. Doing that would tend to attract what is bad about those needing such help instead of helping them to become fully fledged members of a truly modern society.

The cost of integrating the social rental sector in the next new housing estates to be constructed would, most likely, be less in financial terms than if building complete estates of social housing, as used to happen in the past.

However, the key thing, should be to provide this housing separately from the present arrangements for private landlords, who let property to those wishing to rent privately.
Of course unlike privately rented housing, rent-levels for social housing ought to be set and collected by councils and/or the housing associations and not by private landlords.
It is likely that rent-levels set by social housing associations should, over time and to a certain extent, influence the rent-levels being set in the private sector and this would be another advantage to having such properties spread within the whole of the housing provision, across Britain.

To bust another myth, it would be crazy to try and apply the ‘Right to Buy’ strategy to all private tenants – as Labour is currently said to be considering, because the housing market now depends upon the supply of this form of housing, to accommodate the bulk of residential tenants needing accommodation for themselves and their families. If the ‘Right to Buy’ strategy was applied, large swaths of privately rented housing would, if not sold to tenants, simply be withdrawn by the owners and disappear overnight, leaving a serious supply shortage for those currently unable to buy houses outright or qualify for social housing. This, sadly, would repeat past failures if attempted. Anyone who thinks otherwise, arguably doesn’t fully understand the complexities of the housing marketplace operating in Britain today and I would be happy to debate this.

For full information about what it is that I am advocating ought to be done instead, please see:

The House Price Virtuoso Solution.

Peter Hendry, Author:– The House Price Virtuoso Solution otherwise known as The Hendry Solution

How to best improve the Housing Market in England and Wales.

Resolving rental and buy price problems right across England and Wales

As far as building an estimated 100,000 new houses each year for social housing to rent is concerned, there are perceivable downsides to throwing money into this. This is a laudable policy of The Labour Party currently, but for the reasons I am about to argue, it would be a difficult one to put into practical effect. I would naturally welcome their spokesperson’s thoughts on this counterargument for further discussion however.

In the Thatcher era, it was generally understood that the existing council estates around Britain were tending to degenerate towards becoming urban ghettos or concentrations with poorer class-distinctions and lesser prospects and opportunities being available to those from within them.

In the 70’s the then Conservative government, as well as simply selling off individual council houses to newly aspiring home-owner residents (by using ‘Right To Buy’ as it became known), knew that the twin effect would be to slowly start to break up the localised concentration of social housing for rent.

It may be clearly seen afterwards, that to have allowed the capital raised from these sales to be used to build more council estates would simply have recreated the original societal problem once again.
A more creative solution would be needed and whilst no such solution was forthcoming at the time, it was understandably more prudent simply to sit on the cash raised instead.

The question was (and still is) if upwards of 100,000 new houses were to be needed for social rent all around Britain each year and for a decade or more to come, how could that be achieved without creating places tending towards becoming urban ghettos once again?

The only answer surfacing at the time and the one still surfacing now is to turn the problem of housing more of these families (but by no means all) over to private landlords.

In the process of bringing private investors into the business of managing multiple tenancies in locations across the whole country, it soon became clear that this could only be achieved if the tenants under this model were given practically no security of tenure. Without that, the private landlords simply would not invest. The Assured Shorthold Tenancy was conceived.

The result has been quite a success from the point of view of actually housing lots of people and families in large numbers of locations across the whole country.
It is also clear that the reduction in concentrations of people living in social housing estates has had a number of advantages and the mix of council and privately owned houses brings a worthwhile added variation.

The question still remains however – what is the next way forward?

Attempts have been made to force the developers of new housing estates to incorporate a proportion of low cost housing within all new developments but this has not turned out to be a great success and the commencement rate of such new developments has dwindled recently.

If we look at the available evidence critically, some exciting new options start becoming clear.
First though, we need to rule out the options that won’t work. For example:

  1. As explained above, building more large scale social housing estates would not solve the societal problems resulting from doing that.
  2. Giving tenants of the private landlords more security of tenure, would alienate the private investors whom are risking their capital by providing housing for those people in their need.
  3. Rents over the past decade or so have increased beyond expected levels, partly owing to the degree of scarcity of available houses to rent.

So, what we are left with, however unlikely the solution may be, by deduction; must be the only correct way forward. This philosophy was declared to be used by a certain well known Baker Street private investigator through his knighted author, so one would have thought this philosophy has validity and merit. In this particular scenario, there’s one thing and only one thing left to be done.

It is restricting the degree of profit which may be made by these private landlords and when seriously considered, this must be the way forward. To do this effectively however would require a big, bold and extensive new set of policies and agency regulations to be set up by a truly responsible government.

To a smaller extent this may be partly achieved by forcing landlords to properly maintain the structure of their let properties in fully satisfactory condition. This is already now happening but that is not the final answer..

The main way of restricting the degree of profit which may be made, both by private landlords and by owner occupiers too, would be to bring in such new regulatory methods for the marketing, purchasing and renting of residential property using the procedures proposed under The House Price Virtuoso Solution already set out elsewhere in these pages.

For all the details about what this is and how it could inexpensively be fully and quickly implemented throughout England and Wales, please go to the main page covering this:

The House Price Virtuoso Solution.

Peter Hendry, Author:– The House Price Virtuoso Solution otherwise known as The Hendry Solution