Things have changed but the very idea that the problems in the housing market might simply be a matter of restrictive planning and insufficient housing supply is not tenable.
The earlier analysis which advocated boosting house construction at any cost, ignores the question of market performance, which is something that the newly formed Conservative government would be well positioned to look into from a political standpoint.
Let’s face it even before the Covid 19 pandemic the housing market was in crisis, with a lack of sales completions and a lack properties being placed on sale on estate agents books.
The lack of appropriate response to dealing with the recent housing crisis has strong political similarities to the lack of appropriate response to dealing with climate change!
There remains a present reluctance to increase regulation, in case the policies may prove too unpopular with the electorate.
Lack of affordability and resultant homelessness derived from poor average wages are some of the fundamental concerns which need to be addressed.
If we focus in on the absolutely required policy changes, this helps to look at what politicians tend not to talk about when debating the various alternative interventions. These are the things that ought, in fact, to be the areas which should be given careful consideration for review. These include:
The marketing methods used by present day estate agents
Imposing foreign ownership restrictions
Promoting housing as a long-term investment for resident owner-occupiers and growing families.
Not focusing on these matters explains why the present problems still exist for house buyers whom continue to experience extreme difficulties purchasing private housing stock for themselves. This has been of such long duration and it has remained the unsolved problem for several decades in the UK.
The above issues are some of the main factors which ought to be pushed to the top of the political agenda and the most important issue for the swift recovery of housing markets across the whole country would be to deal with the over-pricing issue.
We therefore need to take a radical policy decision concerning this in order to both improve housing provision and house purchasing in the UK.
As the dust and the fallout from the Covid19 pandemic begins to settle, we should be moving forward and change the way private housing is marketed and sold.
The vital thing to do is make housing properly affordable to the majority of buyers and also to tenants requiring the rent option – but how?
The best way to accomplish this would be to incorporate the adjustments prescribed by The House Price Virtuoso Solution. See the link below.
Unless prices are made to match the buying power of the buyers within the localities where the houses themselves are located, only the limited few will wish, or be able to afford, to buy. To achieve the necessary increases in sales (which would be to everyone’s benefit), we must stop relying on selling agents who peg asking prices at fictitious levels and instead start using competing buyer’s agents’ offers to determine market prices.
Now is the time to make the switch; i.e. whilst the market is subdued both in terms of volume and in terms of true house price levels.
For more information about how this vital change may be put in hand please visit the link below:
Posted by: Peter Hendry, Housing Valuation Consultant.
Author of:– The House Price Virtuoso Solution