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Foreign money is far more of a problem than foreign people. Notoriously, many newbuild flats end up empty because not many people can afford the rent, and they

Foreign money is far more of a problem than foreign people. Notoriously, many newbuild flats end up empty because not many people can afford the rent, and they're really just investment tokens anyway. Property is like Bitcoin with bricks.

ta1243 3y ago
Reality isn't like that, according to a pressure group that says empty homes is a major problem (and are thus unlikely to be underestimating) https://www.actiononemptyhomes.org/ https://www.actiononemptyhomes.org/ London, where the main problem is (two people on minimum wage can buy a 3 bed house pretty much everywhere in the country outside the south east) has under 2.5% either empty, in use for short term lets like airbnb, or used for people who have a flat in London and a family home elsewhere. https://static1.squarespace.com/static/6553693f7d629a133b6a4ece/t/6556395f5ebbf5732fcbc36e/1700149600422/London+stats.pdf https://static1.squarespace.com/static/6553693f7d629a133b6a4...
- matt-p 3y ago
  "two people on minimum wage can buy a 3 bed house pretty much everywhere in the country outside the south east" source? Because it doesn't feel like that at all. https://www.theguardian.com/society/ng-interactive/2023/jun/12/interactive-tool-that-shows-where-you-can-afford-to-buy-or-rent-home-great-britain https://www.theguardian.com/society/ng-interactive/2023/jun/... take a look at this map - all the bits of Britain that are actually nice to live in are in "can't buy, can rent" or worse. Prove me wrong, give me an example area?
  - dukeyukey 3y ago
    Also worth seeing that London has about 9 million people, and the south-east has another 9 million. That's 27% of the UK's population in the now-unaffordable area. Throw in some expensive areas outside the south-east (Cambridge, Bristol, seaside resort towns) and that goes up to 30% easily.
    - matt-p 3y ago
      Indeed. That's before you've even gotten to places like Manchester, Edinburgh and the like. Instinctively it feels like about 2/3rds of people live in "unaffordable to buy" areas. Worse it's probably the best paid 2/3rds of the country.
      - Ekaros 3y ago
        Anywhere in the world demand is where there is supply for wages. Most places just have not succeed matching that demand with supply on the housing. While supply of wages has still gone on... Very often where there is no well paid jobs or even paid jobs the demand is low, so housing is cheap. Urbanization has been failed. Supply of housing has not kept up with labour around in most urban areas.
- graemep 3y ago
  Many people are likely to lie about second homes, because their London property will be more expensive so they will want to claim the exemption from capital gains tax for their main residence.
graemep 3y ago
Yes, hard to measure but my feeling is you are right. Definitely so in London where you also get a lot of very large houses (big enough to be converted into multiple flats) being bought by the rich and super rich. Talk to someone in a business linked to luxury London housing and see how long phrases like "family office" take to come up.
voisin 3y ago
> Foreign money is far more of a problem than foreign people. Maybe in the UK, but in Canada we have the same problems (larger by the looks of it) and our government blocked foreign money with zero noticeable impact. I think foreigners are a scapegoat for the cumulative impact of decades of bad government policy at all levels of government, including bad monetary policy.
- graemep 3y ago
  I think the UK is very different, London in particular. The most expensive parts of London the most: https://www.standard.co.uk/business/london-housing-market-forecast-overseas-ownership-b1094179.html https://www.standard.co.uk/business/london-housing-market-fo... Those numbers do not count the people who moved to the UK (mostly London) to avoid paying tax under "non-domiciled" exceptions which the government has promised to abolish next year. The main opposition party has endorsed this policy AFAIK so things should start changing from next year as far as those go.

ta1243 3y ago

Reality isn't like that, according to a pressure group that says empty homes is a major problem (and are thus unlikely to be underestimating) https://www.actiononemptyhomes.org/ https://www.actiononemptyhomes.org/ London, where the main problem is (two people on minimum wage can buy a 3 bed house pretty much everywhere in the country outside the south east) has under 2.5% either empty, in use for short term lets like airbnb, or used for people who have a flat in London and a family home elsewhere. https://static1.squarespace.com/static/6553693f7d629a133b6a4ece/t/6556395f5ebbf5732fcbc36e/1700149600422/London+stats.pdf https://static1.squarespace.com/static/6553693f7d629a133b6a4...

matt-p 3y ago
"two people on minimum wage can buy a 3 bed house pretty much everywhere in the country outside the south east" source? Because it doesn't feel like that at all. https://www.theguardian.com/society/ng-interactive/2023/jun/12/interactive-tool-that-shows-where-you-can-afford-to-buy-or-rent-home-great-britain https://www.theguardian.com/society/ng-interactive/2023/jun/... take a look at this map - all the bits of Britain that are actually nice to live in are in "can't buy, can rent" or worse. Prove me wrong, give me an example area?
- dukeyukey 3y ago
  Also worth seeing that London has about 9 million people, and the south-east has another 9 million. That's 27% of the UK's population in the now-unaffordable area. Throw in some expensive areas outside the south-east (Cambridge, Bristol, seaside resort towns) and that goes up to 30% easily.
  - matt-p 3y ago
    Indeed. That's before you've even gotten to places like Manchester, Edinburgh and the like. Instinctively it feels like about 2/3rds of people live in "unaffordable to buy" areas. Worse it's probably the best paid 2/3rds of the country.
    - Ekaros 3y ago
      Anywhere in the world demand is where there is supply for wages. Most places just have not succeed matching that demand with supply on the housing. While supply of wages has still gone on... Very often where there is no well paid jobs or even paid jobs the demand is low, so housing is cheap. Urbanization has been failed. Supply of housing has not kept up with labour around in most urban areas.
graemep 3y ago
Many people are likely to lie about second homes, because their London property will be more expensive so they will want to claim the exemption from capital gains tax for their main residence.

graemep 3y ago

Yes, hard to measure but my feeling is you are right. Definitely so in London where you also get a lot of very large houses (big enough to be converted into multiple flats) being bought by the rich and super rich. Talk to someone in a business linked to luxury London housing and see how long phrases like "family office" take to come up.

voisin 3y ago

> Foreign money is far more of a problem than foreign people. Maybe in the UK, but in Canada we have the same problems (larger by the looks of it) and our government blocked foreign money with zero noticeable impact. I think foreigners are a scapegoat for the cumulative impact of decades of bad government policy at all levels of government, including bad monetary policy.

graemep 3y ago
I think the UK is very different, London in particular. The most expensive parts of London the most: https://www.standard.co.uk/business/london-housing-market-forecast-overseas-ownership-b1094179.html https://www.standard.co.uk/business/london-housing-market-fo... Those numbers do not count the people who moved to the UK (mostly London) to avoid paying tax under "non-domiciled" exceptions which the government has promised to abolish next year. The main opposition party has endorsed this policy AFAIK so things should start changing from next year as far as those go.