Around one in five privately rent their homes in Great Britain, around 4.5 million households and one in six are occupying in the social sector. Two thirds live in their own homes.
Someone I know saw their rent for a studio flat rise 14% last year and yesterday the landlord asked for a 29% increase as next floor flat just let at that level. Essentially the rent increased 43% in one year. If you don’t pay by hook or by crook you’ll have to go. Not good for families or for that matter a stable means of living.
Annual inflation is supposedly 10% not 43%. Certain indices however do not include housing rent in the equation therefore per se inflation figure is misleading. The bottom line is that the level of rent as a proportion of income is unsustainable and trouble is on the horizon.
Yesterday for the first time in 19 years house price growth fell back 5.3% but rents are on an upward rampage. Retailers and Banks , John Lewis and Lloyds are jumping on the rent wagon to create housing and they are soon to see their bubble burst ( again ). Insurance giant Legal and General are not doing well with their modular housing and at a time concrete is in the news as defective we need to rethink construction. Cladding on housing has already produced nightmare scenarios.
Affordable housing is supposed to be what it says on the tin ‘ affordable ‘ but it’s not. We need more homes but we need homes that are within a different model outside rent or own and the funding needs to be provided to Joe Public by banks like Lloyds and then furnished by John Lewis. The model is time line ownership providing certain homes for a certain time at a certain cost. Society will benefit. On average people move home every 7 years and where you work today may well not be where you work tomorrow or the school our kids go to are redundant when they grow up. How long is an 80 year going to need a home ? Do you live in the same place as you did 20 years ago ?
Meantime the I’m all right Jack brigade who oem their own homes ( and good luck to them ) may wake up one day to an ULEZ moment where the Government introduce an annual wealth tax against the home value or bring in capital gains tax removing that tax free capital gain. Then the inheritance will reduce and the kids who can’t buy anyway will remain in their bedrooms..The system is flawed and Governments right middle and left muddle with rent control taxation and transfer costs to raise the buck. The Englishman’s home is his castle but it can overnight become a fortress with him in it.
This is a rant on rent, a warning on ownership and a call to change. Communities , families and belonging build stabile society and a safer more satisfactory way of life. Let’s forget Great Britain and let’s make Create Britain. We can lead the way.
qbitblogger 