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‘Right to Buy’ strategy was applied, large swaths of privately rented housing would, if not sold to tenants, simply be withdrawn by the owners and disappear overnight, leaving a serious supply shortage for those currently unable to buy houses outright or qualify for social housing.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 previously 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, using ‘Right To Buy’ as it became known, knew 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 previously The Hendry Solution

House-price affordability is absent in UK, except for the wealthy minority

House-price affordability is absent nowadays except for the wealthy minority, unless huge mortgage loans are taken out by everyone else needing to borrow to buy.
This cannot be right or proper.

This problem is running out of control in all regions of Britain. It’s called the un-affordability problem. It affects probably more than half of the house-buying population!

Why is it that those in regular employment on average earnings simply cannot afford adequate housing, whether to rent whilst saving or to buy?

The newspapers have been covering this serious dilemma for many moons now yet the plight of the lack of affordability remains with us.

Is it because those whom have ascended several rungs of the property ladder themselves are the ones making the policy for affordable housing? It does seem that there is a certain credibility to this accusation.

It seems that those in the position of making the big decisions on what to do about this problem have seen that they themselves are benefiting from long term capital value appreciation and low interest rates and so it’s all too easy to let things stay as they are. This is like pulling up the drawbridge and leaving those left outside the castle to be forced to fend for themselves. It leaves those without the ability to save enough to buy even a basic house for themselves out in the cold.

Not doing much to address this problem is demonstrably not good enough. It is clear from all the statistics which loudly speak for themselves.
Not dealing with the house affordability issue is leaving those without enough capital practically defenceless.

Unless somebody ‘up the ladder’ so to speak, flags this problem in a stark and prominent way, the drawbridge mongers are going to get a way with their shoddy tactics.

Having spent my whole career in housing and property related matters I have crafted, using my valuable experience, the primary solution to this dilemma and published it online.

Policymakers have been writing in the press. They have had innumerable meetings.
Policymakers have been on television but the house-price problem continues.

The answers are not in reducing interest rates, nor in mass producing hundreds and thousands of more un-affordable houses. it’s not by providing 50% shared-ownership schemes, it’s not indeed by advancing near 100% mortgages, extending the repayment period beyond 25 years, reducing stamp duty or, indeed, offering extra help to first-time buyers to be able to borrow enough to bridge the gap in their finances.

The one common denominator to all these clearly failed policies is that they do not resolve un-affordability vis-à-vis the house-price crisis. House prices themselves have stayed un-affordable to most middle incomers and especially to first time buyers.
Let’s hope soon there is a meeting of minds on how this vital issue may at last be resolved. It must be resolved for the sake of the post-brexit evolution of our economy across the whole country.

There is a positive and pragmatic way to deal with this crisis.

For more information about what it is that I am advocating must be done, please see:

The House Price Virtuoso Solution.

Recent Links:
The bank of mum and dad is one of UK’s biggest mortgage lenders
L&G’s research, based on a poll of 1,600 parents
The BBC

A million more youngsters to live with parents, says Aviva
By Brian Milligan
Personal Finance reporter
The BBC

Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution

There needs to be a route and branch change in the way houses are marketed

The truth is:

Rank capitalism, as we have come to know it, does not work for a majority of us especially when it comes to house ownership.

Whilst I haven’t exactly been a fully committed socialist over recent decades I can see the difficulties in the existing capitalist model, especially in the way it has fuelled large house-price increases over the past 50 or more years.

Basically, those who already own houses themselves naturally hope for prices to keep increasing.  Above inflation price-increases are preferred by such owners and anything more is very much applauded whereas price falls are most unwelcome for them.  Not unreasonable logic one might think, on first gaze.

For first time buyers however, price falls are desperately hoped for especially nowadays, as being a possible way to enable these people to somehow afford to buy whilst many still find it absolutely impossible to even contemplate doing so.

For these people the only alternative to living in a house of their own once they become adults is to rent, especially when they have family responsibilities to consider as being their top priority.

This alternative involves paying what are already high rents compared with average earnings, and these rents keep on increasing year on year.

Renting therefore impacts on such peoples’ ability to save to eventually buy their own home and in quite a few cases, renders it completely impossible for them to do so.

Banks are, it must be seen, complicit in seeing that house prices stay high, especially as it allows them to lend more money whilst having the security of loans secured on property by way of a mortgage.

The bulk of many bank and building society net profits understandably comes from earning interest on mortgage loans.

The problem is, none this helps would-be buyers!

Yet by not helping these buyers, the banks and everyone else in the business of supporting the economy, including dare I say estate agents themselves, are actually loosing out by not selling to the buyers out there at sufficiently affordable prices to allow sufficient sales to take place.

A more uniformly priced housing market is urgently needed and a return to true affordability and availability has been needed for decades.  If only one of our political parties would wake up to this fundamental need by including a workable strategy in their manifesto, change for the better could soon start to be introduced into the existing housing markets.

The recent labour proposal to replace Council Tax with a property value tax would not only add further taxation to an already highly taxed part of our economy but would also do nothing to deal with the market inefficiencies to which I am referring.

Taxing specific markets is not the correct way to reform and improve their function.  This was historically shown not to work in the 70’s when the Labour government brought in Development Land Tax.  Instead it is time new policies were crafted to fully address the specific problem of increasingly unaffordable house prices.  I would have thought Labour, of all parties, would have understood this by now.

The only way to restore price affordability and availability in the housing markets up and down England and Wales would be to make these markets perform more efficiently and more transparently. 

If true and fair market prices were established, without such high borrowing requirements, more people could step onto the housing market and they would generate many new transactions as they began to do so.

These new people would, of course, be utilising the housing they have just purchased, whereas currently there are far too many houses bought simply for capital gain and some are even left empty in the process!!

Restoring the prospect of owner-occupation as a feasible option for average families once again, would appear to be an essential policy to adopt for any prospective new government.

If you want to read about how changing to having efficient property agents could be put into practice go to the following link:

The House Price Virtuoso Solution

Full details of our proposals for properly reforming all housing markets in England and Wales.

PS:
This and other similar arguments presented here are intended to be A-political, based on the merits of humanity and not seen as being vote-catching devices of any kind.

Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution

How to get the British housing markets back up and running without waiting for Brexit to be resolved

Here are a few pointers to a better understanding of how to cure any stagnation developing within our housing markets:

The downturn for most local housing markets across England and Wales actually started to manifest before the Brexit uncertainties themselves began to take effect.

The best way to avoid cyclical downturns in housing markets is to lessen them by making sure the prices being quoted are as genuine, fair and as fully transparent as possible. That’s something that clearly isn’t happening and cannot happen whilst the agents negotiating each transaction are acting primarily for sellers with unrealistic expectations coupled with a percentage to be extracted by the agent on completion.

As buyers are being ‘turned off’ more and more because of over optimistic asking prices, sellers are simply failing to sell and so the markets are forced into stagnation.

Eventually, sellers have to lower their prices when they are forced to find buyers, because they need to move and cannot wait any longer. It’s an uncomfortable situation for both parties by this time. The one redeeming aspect of all this is that having just sold, the newly created buyer will be able to negotiate to a similar degree with the sellers of the next house they decide to buy!

This set of circumstances happens in almost predictable cycles across all housing markets and it has been doing so for many decades past.

It’s time to move to resolve this cycle of crises for the sake of everyone involved.

The ONE way this may be accomplished would be to change the way houses are marketed by using agents to assist buyers in searching for and purchasing their next house to live in and no longer use agents acting solely for vendors or sellers.

For more information about how this may be accomplished, please read the following series of articles on this blog, especially the one found on the link below – The House Price Virtuoso Solution. It gives full details of my proposals for resolving this issue and explains the method to improve the workings of all housing markets across England and Wales:

The House Price Virtuoso Solution

Peter Hendry, Consultant in Housing Valuation

The new government leaflet on house buying

Did you know there’s a new government leaflet just published (on 9th May 2019) on house buying? It’s called:

‘How to buy, A guide for people looking to buy a home in England and Wales’

There’s also another leaflet on house selling.

Here are my comments on a first reading of the house buying Leaflet:

The over-riding problem about estate agents not positively advising buyers is misunderstood and greatly understated.

It says:

  • The estate agent will help guide you through the buying process and work with other parties to help the sale progress.  But remember please – their primary role is to help the seller sell their property.

Another shortcoming needing more emphasis is that surveyors are less able than previously to give good advice on the detailed condition of a property one is considering purchasing or indeed give a reliable assessment of its current value.

Sadly, most surveyors are associated with estate agency in one form or another in order to earn their livings these days!  These surveyors cannot therefore be independent of estate agency which is primarily involved in selling houses on behalf of sellers at the highest prices able to be achieved, irrespective of the true or current value of the property.  It is the latter value that buyers so urgently and importantly need, in order to make pragmatic and wise buying decisions at the time of their purchasing but they are usually unable to find or know this information.

The problems the current-day buyers of today face therefore include uncertainty in the absence of being able to obtain reliable and sufficiently independent surveyor’s reports on the condition and/or the current value of properties they are considering purchasing.

The leaflet merely advises buyers to look for more information on various types of home surveys which may be found on the Money Advice Service website.

USEFUL LINKS:

https://www.moneyadviceservice.org.uk/en

https://www.moneyadviceservice.org.uk/en/categories/buying-a-home

https://www.moneyadviceservice.org.uk/en/articles/estimate-your-overall-buying-and-moving-costs

https://www.moneyadviceservice.org.uk/en/articles/a-guide-to-homebuyer-surveys-and-costs

A pdf version of the government leaflet:

‘How to buy, A guide for people looking to buy a home in England and Wales’

This is viewable at:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/799883/How_to_buy_guide.pdf

A pdf version of the other government leaflet:

‘How to sell, A guide for people looking to sell a home in England and Wales’

This is viewable at:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/799884/How_to_sell_guide.pdf

For more information on resolving this issue and to improve the workings of the housing markets across England and Wales please read The House Price Virtuoso Solution:

The House Price Virtuoso Solution

Peter Hendry, Consultant in Housing Valuation

The primary justifications for sales and marketing reform in all housing markets across the UK

The cause of the failure of large numbers of buyers to be able to continue to afford to get onto the housing ladder is primarily on account of government banking and finance policy.

10 years have past since the 2008 financial crash and the effects of using quantitative easing (QE) are, at last, beginning to reveal themselves.

Virtually all capital assets have increased in value against sterling, whilst savings have simultaneously experienced a decrease in value – in real terms.  This situation, as everyone will now undoubtedly realise, does include significant price increases right across the housing markets.

The effect of this policy has resulted in a majority of millennials (i.e. people coming-of-age around the turn of the millennium) becoming unable to afford to buy houses.  Instead they will have to accept becoming long life tenants as being the only viable alternative to having to stay with their respective parents into middle age.

In my opinion, along with many others, this is a sufficiently bad effect to warrant a complete re-think of the way monetary policy is managed both by government and equally as importantly, by the separate institution of The Bank of England itself.

Here is the brief reason for this conclusion:

10 years ago (2008), the government was faced with coming up with a rescue plan to deal with the global financial crisis which was seriously affecting Britain as well as the currency markets in America and other major nations’ currency markets.  The required decisions were extremely time critical.

As a response, the government decided to authorise The Bank of England to issue digital money to purchase government bonds as loans for use to fund public borrowing by financial institutions.

The effect of this (which was well known at the time) would be to reduce the yields on such bonds owing to the increased demand for them.  The secondary effect (which would also have been known at the time), was that we were going to have to accept permanently lower interest rates across all financial markets.

This would result in banks everywhere having access to more funds to lend but (and this is a big but), they would then need to lend more money in order to earn enough from the lower rates of interest able to be earned from it.

The scale of QE engaged upon following the crisis was huge and at unprecedented levels.  Indeed such a course of action had never been tried to such a massive extent previously, even though it was deemed essential and the only plausible course to take.

Knowing that this was about to happen in the USA our government decided, along with The Bank of England, to follow suit.

The effect was going to be that suddenly, practically everyone in employment would start to have more borrowing ability and hence more purchasing power.  This was intended to help the economy to recover and save it from diving into a full blown recession.

The policy however would, at the same time, adversely affect those with savings to the extent that the interest earned on all such savings would no longer keep pace with the erosion of the value of their savings both by the risk of inflation as well as the severely reduced interest rates expected to be obtainable.

What the government was perhaps understandably somewhat coy about however was, knowing the only way to counteract the resultant inflationary pressures following the severe dose of QE which was about to be prescribed, they would have to simultaneously engage in a severe program of austerity cuts.  This they did with a determination that suggested their lives (or at least their appointments) depended upon it!

The unavoidable difficulty in doing this was that more substantial mortgages, to be available to those who could afford to borrow, would cause house prices themselves to increase very substantially.  In some places house prices have actually increased by between 40 and 60% over the past five years alone because of these policies.

As wages were never going to be able to keep pace with such increases, those having to save for a deposit to buy a house were soon finding themselves unable to save enough fast enough to keep up with expected house price increases.

The result of this, as we can now clearly see, is that many hopeful first-time buyers have had to defer and in many cases completely give up the aspiration of ever becoming home owners in their own right.  This is a tragedy for all of them and is now clear for everyone to see.

Owing to the resultant house price increases the direct effect of QE has been to cause a very significant slow-down in the numbers of houses being sold across all housing markets, certainly in England and Wales.  Whilst this is true it has not been very well documented, perhaps for fairly obvious reasons.

A further side-effect is that estate agency is suffering significantly, since they generally get paid after the sales they have actually arranged are completed.  Thus they are suffering a similar fate to other organisations more directly subject to the targeted austerity measures.

The true aftermath of the risky QE approach embarked upon is now becoming clear.  We are destined to be stuck with very low interest rates for years to come and our house prices, like a mirage appearing to stay just out of reach of the thirsty, will remain similarly out of reach of a large proportion of future home-makers or home owners.  There seems to be no easy alternative – now that we have been driven down this particular road for such a great distance and to a large extent, in our own ignorance.

There is however one way in which houses may be priced more competitively and market sales turnover thus restored.  It is what is advocated by The House Price Virtuoso Solution which is explained more fully in the link below.

Implementing this solution would greatly help both the present and future affordability of all houses by improving open market conditions.  This would allow the prices paid, to more closely match peoples’ ability to buy instead of having prices set based largely on the projected financial returns of house builders and developers – as generally happens at present.

The House Price Virtuoso Solution is a new and innovative way to make all housing markets across the land behave more in accordance with what local people can actually afford, by placing less reliance on vendors’ asking prices as being the primary price mark.

In the long run The House Price Virtuoso Solution, if implemented, would begin to restore confidence by enabling successful house purchasing across all areas, both within our towns and in our country.

I therefore strongly suggest that this proposal should receive detailed examination and I would encourage healthy debate in regard to it by all those with genuine knowledge in the housing sector.

To find out how such a significant market improvement could be achieved, please go to:

The House Price Virtuoso Solution: Full details of our proposals for properly reforming all housing markets in England and Wales.

Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution

Supplementary reading:

BBC article on QE

propertyindustryeye article about first-time buyers and the housing market

Further justification for changing the way houses are marketed within the U.K.

Justification 2:
Before much is said about the reasons for the pricing problems perhaps the most important thing to be known and understood, is the fundamental reason why house price rises have been happening recently, despite our general economic trends falling.

Firstly, it is essential to know what distinguishes house sales and purchases from almost all other sales and purchases. It is that houses are capital assets and not chattels. This means that the values of all such assets vary in the market place, dependent upon the current demand for such assets.
In other words, such assets have an ‘intrinsic value’ which can both increase and decrease, depending upon current market conditions whereas things that are not within the class of capital asset, generally only depreciate in value as they age.

For this reason in particular, all those owning houses should treat them as such and not merely regard them as being something which can be marketed by the seller without taking the all-important ‘buyer’ considerations into account.

Justification 3:
It is of fundamental importance that houses should be regarded as having special characteristics in terms of their true current market values. If not, they cannot be bought and sold successfully in the marketplace.

The current way this is done does not have due regard to this aspect and the result is general chaos, with price disparities constantly rippling across the whole of the housing marketplace – generating unnecessary uncertainty.

The frequent delays and transaction failures which happen as a result, are testimony to this and they show that there is a need to substantially revise the way that things are done in these markets.

The way to resolve this situation correctly, is to alter the existing methods used to market these assets and instead treat them as capital assets in a similar way in which shares are traded on the stock market. I mean by this that buyers are and must be integral in deciding the prices-levels at which such assets ultimately change hands.

The House Price Virtuoso Solution gives the detail of how this may be achieved without excessive cost or delay and I hope you find these new proposals to be both interesting and worthy of consideration.

Justification 4:
In essence, what is needed is to reform the methods by which estate agents operate in the housing market and this reform is now long overdue.

The necessary fix cannot simply be about building more houses to try and balance supply and demand, as claimed by many whom I have discussed this with. Instead it must be about making the housing market itself function far more efficiently. This may well (but perhaps understandably), be something which estate agents themselves are currently reluctant to seriously consider.
Nevertheless, this is what is needed, even more than starting to get additional housing units built as soon as possible.

There IS a better and quicker way, besides that of building many more houses which, by any degree of estimation, would have to take nearer ten years than just one if indeed such a proposal should even be capable of any degree of swift implementation somehow? More about that later!

Justification 5:
As stated, the housing market is broken, with prices being forced up beyond most people’s ability to pay.  This is not however solely about supply and demand, as I am keen to explain here.

It is also about money finding its way into the housing market illicitly, without sufficiently rigorous financial checks being made.  It’s essentially about selling agents (the estate agents) having become oblivious to this as well as a number of other issues – since their primary remit is simply to try and get the highest price possible for each property which they manage and sell on behalf of a vendor client.
Yes, estate agents will happily try and maintain that house prices are decided simply by supply and demand but this loose statement does not bear any serious scrutiny. A rudimentary knowledge of economic theory will undoubtedly confirm that.

Consider for a moment:
Dodgy money (or the money that requires laundering) which has caused significant house price inflation recently …
And:
Over-borrowing The rules for ascertaining who should be permitted to borrow, for what reason and exactly how much should be tightened – especially whilst such large sums are able to be borrowed so cheaply.
And:
Lack of valuation knowledge There’s a general lack of adequate valuation knowledge (and experience) possessed by most agents in the property sector currently …
And:
Bias towards vendor negotiations
There is a worrying lack of transparency concerning the way in which estate agents operate nowadays, especially as far as buyers are concerned.
Changes need to be brought in by government as agents themselves would clearly prefer not to do so whilst primarily supporting their clients, the vendors.
And:
Exaggeration
Meaning that lies, deceit and broadcasting misinformation are nowadays pretty rife amongst competing agents, whom are forced to utilise such tactics in their quest to each gain more instructions to sell or let.

It simply cannot be denied that each of these highly unacceptable behaviours are playing too great a part in deciding current-day house prices in England and Wales and that such matters have clearly not been adequately addressed so far by any responsible organisation including our government.

To find out how such a significant market improvement could be achieved, please go to:

The House Price Virtuoso Solution: Full details of our proposals for properly reforming all housing markets in England and Wales.

Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution

There needs to be a sea-change in all housing markets across England and Wales

Why? Because the existing methods of marketing houses across England Wales are discriminatory, irrational, unjustifiable and a violation of buyers’ rights and the general economic rules for arriving at fair valuations for residential property in the open market.

The methods used by estate agents are aimed at maximising prices for vendors at the expense of and to the disadvantage of buyers whilst also allowing banks to gain substantially by lending more. This is patently wrong and needs to be stopped.

To resolve this crisis I am asking our ‘government’ to stop the over lending by banks and borrowing institutions, causing house-price escalation in England and Wales currently. It’s time to fully re-assess this predatory and over-used policy.
It’s no good trying to prop up house prices at the expense of genuine open market affordability.

The solution to this crisis is, of course, not particularly simple or obvious.
It must depend upon absolutely logical arguments, explaining how to bring about a fair and an inclusive way to buy, sell and to let privately owned houses across the whole of England Wales, especially to benefit the all-important first-time buyers and of course tenants hoping to become buyers.

There are now clear answers to the problems which such buyers are undeniably facing and these are becoming clearer as time goes by but a certain amount of bravery would be needed to effect the changes necessary to secure a sound housing market providing fair opportunities to those currently trying to buy, sell and rent houses to live in. Also, this would benefit those performing the vital agency work involving marketing and advising particularly buyers but also sellers regarding the sales and purchases which they wish to execute.

Genuine debate at a high level needs to be held on this.

To find out how this could be done, please go to:

The House Price Virtuoso Solution: Full details of our proposals for properly reforming all housing markets in England and Wales.

Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution

How much would you need to save a month to buy a house within 10 years?

It is true that if you made contributions of £200 a month into a stocks and shares Isa, (i.e. put aside earnings of £2,400 p.a.) and aimed for a realistic yearly return of 4pc after fees, you’d reach your goal of £40,000 in nine years.
If your partner did the same, this could be £80,000.

In addition, if house prices were to fall over the same period, you could suddenly find yourself well poised and ready to buy a comfortable place to start owner occupation in. Unfortunately, there are quite a few ‘ifs’ in this scenario!

The main obstacle to achieving this is house prices themselves which, even at the lower end of the house-ownership spectrum, are out of reach for a large number of hopeful owner occupiers. This obstacle could however be removed using relatively straightforward improvements in the way that privately owned properties are marketed.

The present ‘government’ idea of trying to get prices to reduce is by building many more housing units but this idea is fundamentally flawed. The reason is that the effect of doing it would be marginal on price. Why? Because unless upwards of 10% of the total number of currently built starter homes were constructed, little or no effect on house-prices themselves would be felt.

If you do the maths it becomes clear that it would be impossible to build enough, even over a full ten years. You would be talking about building in excess of ten times the number of new units currently being built each year for at least the next ten years!

By deduction, and please notice that however seemingly implausible it is, the right conclusion can only be that the current methods of marketing all properties is what needs to be changed. It is the one thing that is highly inefficient and old fashioned and improving that is the key to achieving the desired result.

Reform the way privately owned houses are bought and sold by making the process open, fair, and efficient because this is the key.

Doing this would bring the prices of starter homes back within the reach of first-time buyers and they would no longer have to borrow the eye-watering amounts that are currently stopping the majority of those whom wish to, from ever becoming owner-occupiers.

To find out how this could be done, please go to:

The House Price Virtuoso Solution: Full details of our proposals for properly reforming all housing markets in England and Wales.

Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution