Dispatches - Britans homebuilding Scandal

davindub

http://www.channel4.com/programmes/dispatches/

A very good look at Britain's housing market which seems to have the same issues Ireland is having.

Jarith David is to issue a whitepaper next month on now to tackle the big developers who have monopolised the market and hold onto land to increase prices.

Main points

• House prices increasing well beyond affordability for people with middle incomes.
• Big 3 developers have a very close relationship with local councils
• Out of 200,000 planning permissions granted to big developers, only 30000 homes were completed last year
• Developers are landbanking in order to increase profits, housing output actually fell recently. Developers hold a lot of land within council boroughs, they create private options on land that may receive planning permission in the future.
• Smaller builders priced out of the market, Jaraith David plans to reverse this

It seems quite similar to the Irish market, the government has been enabling big developers and discouraging small developers from taking on projects. Think the gov will realise that if they create a monopoly for the big developers, they will exploit it?

What can we do to influence the government strategy?

stampydmonkey

Not a lot.

Doesn't help that Nama are effectively doing the exact same. Example, a nama housing Site has planning permission for a 100 houses. Developer begins on site and wants to tear into it. Nama will only allow him build 10-15 units, wait for them to be sold before allowing them move onto the next phase.

Yes they don't want to burned but there's a housing crisis and they know full well this is inflating market prices. Now imagine this across all nama sites in the country...equals major reason for housing crisis. Government know this too

Villa05

davindub wrote:

What can we do to influence the government strategy?

I'm afraid the only thing that can be done is get rid of Government. Repeat untill the message gets acrooss.

Create some kind of union of renters, like minded individuals who understand that high house prices are destructive to the general economy and lobby government

athtrasna

Mod note

Folks this thread is already crossing the line way too far into politics. Stick to Accommodation and Property aspects please. There are plenty of other places for political discussion.

riclad

If the government wants to get more houses built quick,in area,s where
demand is high
they have options to encourage self build houses, give more tax credits .
Maybe give land to charity housing groups and make it easier for them to borrow money for building.

Cuddlesworth

The answer is a tax on undeveloped but residential zoned land, high enough to discourage land banking. But I would only be comfortable with that in Ireland if local councils and TD's were 100% removed from any part of the planning process as its ripe for serious abuse.

davindub

Just on the radio on the way home someone from Hines (massive developer) was speaking about Cherrywood. They are to construct about 4500 units and other developers 2500. The majority of their units will be build to let.

Estimated prices: 1500 for a 2 bedroom apartment pm, 300k+ for house (didn't specify amount or size)

Bought the land in 2014 from Nama, worked with Simon Coveney on the plans, will start laying infrastucture in 2017 (Hines have stated before they lay infrastucture 2 years before selling houses) and hope to have 1st units sold in 2018.

4 years to get the 1st units built....