Property

Why building more houses won’t bring prices down

Does the law of supply and demand apply to housing? In other words, will building more houses and flats bring down prices? There is a growing economic consensus that the surprising, and rather counterintuitive, answer is: not to any significant extent. It is a conclusion that has revolutionary implications for housing policy, and what we need to do to help people realise their dream of owning their own home. Ian Mulheirn, chief economist at the Tony Blair Institute, concluded in a recent paper for the UK Collaborative Centre for Housing Evidence:  ‘The large body of literature on the responsiveness of house prices to supply indicates that even building 300,000 houses

Fit for a Queen: why Windsor should be on your property radar

It’s rumoured that Prince William is considering a move from Kensington Palace to be closer to his grandmother in Windsor. Since her return from Balmoral, she has based herself full time at Windsor Castle and it’s certainly a great town but should you consider moving there too? Years ago I worked with American investors looking to buy commercial real estate in the UK. One thing they could never quite appreciate is how old everything was. They’d often ask why anyone would build Windsor Castle under a flight path. I’ll merely leave that there with a raised eyebrow and let you know that an original castle was first built on the site

Letters: Let the housing market collapse

Treading the boards Sir: As a teacher, I was sorry Lloyd Evans did not include school productions in his excellent assessment of the cultural devastation inflicted by Covid-19 (‘Staged’, 3 July). While cancellation of West End shows is a tragedy, far more damage will be done to the thousands of children whose one chance to watch or perform in a play or musical has been taken away. These humble, often cheerfully disastrous, amateur productions bring pupils together in a way nothing else can. W. Sydney Robinson Oundle, Northamptonshire Big bad builders Sir: I enjoyed Liam Halligan’s comprehensive assessment of the appalling state of the UK building industry and the dire

The Nicola Sturgeon effect on house prices

Nicola Sturgeon depresses me and seems to be having the same effect on Scottish house prices. In a housing market described by departing Bank of England economist Andy Haldane as ‘on fire’, the flames have been rising higher the further away from London — but more or less extinguishing themselves at Hadrian’s Wall. Why buyers are scarcer in Nicola’s domain is a question I’ll leave to our political writers, but the broader picture of soaring home prices across the rest of the UK is an unforeseen pandemic effect that may have painful consequences. Nationwide’s June data shows an annual price-rise bar chart increasing steadily from 7.3 per cent in London

Letters: We can’t build our way out of the housing crisis

Excess demand Sir: Liam Halligan (‘The house mafia’, 26 June) treats us to an exposé of the shoddy products of the mass housebuilders. In the course of his article, however, he accepts as given that the solution to the housing crisis is to build more houses. The problem, however, is not one of deficient supply; it is a problem of excess demand, driven by ultra-low interest rates, kept so low for so long that the result has been an out-of-control housing boom. The young are being prevented from buying a house, not because housebuilders hoard land and refuse to build, but because buyers with access to eye-watering amounts of borrowed

Rod Liddle

The political baggage of moving house

We are currently house-hunting — please let me know if you have one going spare. We are looking for a home in the north-east of England in any constituency which was once solidly Labour and is now in the talons of a brutally right-wing Conservative MP — this is my wife’s stipulation and I find it fair enough. However, we do not want to live too near the poor people. In truth we had been casually looking across a vast swath of Northumberland, Durham and North Yorkshire for a good half-dozen or more years, but until now there had been little urgency to the business. We marvelled at the property

Don’t pity me for living in London

Londoners have had to learn, more than ever before, to master the art of fielding pity. We’ve been on the receiving end of lots of it this year from people living in the country who care about us, which makes it worse because we’re supposed to be grateful. I’m still smarting from a few recent zingers: ‘I do feel sorry for you, being cooped up in that small house.’ ‘It must be stifling there. We’ve got a nice breeze down here.’ ‘It’s all so lovely and green. Even London must be looking quite green.’ I bat away this pity that comes across as one-upmanship, bleating: ‘It’s been fine, actually’, ‘I

How to end the housing cartel

It’s no surprise that house prices have risen faster over the last year than they have in almost the last twenty. After all, everyone has realised what a difference a home can make: the extra space for a home office, a garden for fresh air or even just a quiet corner to escape the reality of lockdown. Not to mention a stamp duty holiday encouraging people to buy quickly. But the luxury of homeownership is slipping away for many young people.  While these increased house prices are a boon for those lucky enough to be on the housing ladder, it spells further disaster for those of us waiting impatiently on

How much longer can the Treasury rig the housing market?

The past 15 months have produced a bizarre economic paradox. In 2020, the economy shrank at the fastest rate recorded in modern times: 9.9 per cent. Yet house prices have not merely weathered the storm, they have risen at the fastest rate since the height of the property boom in the 2000s. According to Nationwide, the average value of a UK home has risen by 13.9 percent in the past 12 months. Halifax puts it a little more modestly at a 9.5 percent annual rise. Yet there is a pretty clear picture of a rising market driven by a lack of stock and a desperation from many people to move home

Why is modern architecture so ugly?

In Chesham and Amersham last week, Tory voters punished the government, not only for building on greenfield sites, but for allowing the construction of too many ugly, badly designed buildings. The British public are fed up with modern architecture. Despite polls that prove this time and time again, architects simply ignore people’s views. Indeed, if the public has the temerity to criticise their latest works, there is uproar — as I have discovered to my cost. At a dinner in late 2019, I asked Norman Foster, the ‘starchitect’ of such things as London’s widely derided City Hall and the Berlin Reichstag, if he was pleased by the government’s new Building

A second home in Cornwall is nothing to be proud of

Last week there was a public toilet for sale on the coast of Cornwall. The Kent-based auctioneer called it ‘an exciting and rare opportunity’, although its video tour of the property did not even undo the padlock on the security door. It was on the market for £20,000, which was a bargain — the last exciting and rare toilet block to be auctioned in Cornwall went for five times its asking price, even though it didn’t have as nice a view. It did, however, have windows. It’s undeniable that the property market in Cornwall is overheating. The backlash to the toilet auction was such that it was withdrawn from sale,

The dos and don’ts of building an extension

House prices are increasing at their fastest rate for seven years, jumping by as much as 10.9 per cent according to the Nationwide in their most recent survey. Is now the time to stay put and extend rather than go through the hassle of moving into a supply constrained rising market? And if you do extend, is it guaranteed that you’ll add value? Adding an annex or a loft extension, according to Shawbrook Bank, a home improvement loan provider, indicates that you’ll add 5 per cent to the value of a home and separate research by Nationwide suggests that 20 per cent of the value can be added if you build in

How to build more houses

Since the 1930s, bad planning has destroyed swathes of our most precious heritage while causing economic damage that, by some estimates, exceeds that of the second world war. We will end the disaster only if we learn from past mistakes. The current war about housing targets and ‘concreting over the South East’ is the latest in a long line of — generally successful — revolts against government housebuilding plans. In the 1940s, jeering protestors coined the name ‘Silkingrad’ for housing minister Lewis Silkin’s new town of Stevenage. In the 1980s, Nicholas Ridley’s controversial boost in housebuilding was reversed when he was replaced by Chris Patten. And in 2010 the backlash

From Suffolk to Essex: why moving east makes sense

You might remember, back before Covid, when life was ‘normal’, at three o’clock on a Friday afternoon, the Volkswagens, Audis and Jaguars clogging up the pavements of Kensington, Parsons Green and Hammersmith would one by one nudge out, and make for the Great West Road, duly clotting the A4 like a fast-food addict’s aorta. To all points west they would go – to the dewy hamlets of Hampshire, to the honeyed villages of the Cotswolds, to the pebbled beaches of Dorset’s Jurassic Coast, to the curvaceous nooks of Devon’s South Hams. But there is another way you can go, my friends, one which isn’t west. You can go east. And, boy,

The insanity of Britain’s housing market

On the day the Office for National Statistics announced a sharp rise in consumer price inflation, albeit to a still modest 1.5 per cent, we discovered that house prices have jumped by a staggering 10.2 per cent in the last year. The average house in England now costs £275,000, close to ten times the average annual income. In 1992, the average house cost three times the average income. A housing boom during a pandemic in the wake of the deepest recession in 300 years doesn’t make a lot of sense, but a few recent events can partially explain it. After three lockdowns, there is pent-up demand, including for houses. The

Selling the family home to pay for care is not an injustice

The sound of the well-off grumbling about their finances is always an unattractive one. But there is one gripe that has become particularly powerful, filling the airwaves and shaping public policy. This is the persistent, ever louder complaint from many households that they are required to sell the family home to pay the costs of care for a close relative. It is a practice widely seen as ‘a scandal’, where the state seizes private property because of its own failure to create a properly funded care system that meets the needs of the elderly. The flames of grievance are stoked by the press, pressure groups and politicians, who promote the

Bricks and pieces: the blight of London’s fake facades

‘I found Rome a city of bricks and left it a city of marble.’ So Augustus is supposed to have said. What would an emperor of London say today? ‘I found the capital a city of bricks and left her a city of rubble’? London bricks are falling down. Across the capital, brick facades are coming off in chunks. Like the Cadbury chocolate Flake, this is the crumbliest, flakiest brickwork. I was all for the new brick city. I’m a brickwork bore. Away with glass, away with steel! Build back better, build back brick. When I saw brick buildings going up in new developments I cheered. I will bang on

The fury and frustration of living in a listed building

You have to really love old houses to buy a listed building. My wife and I know this to our cost. We’re now on our third in a row. In each case we swore we’d never make the same mistake again and then, idiots that we are, we’d be seduced by some deceptively charming little gem and the same story would unfold. It’s not just that old houses are likely to be impractical by modern standards: cold, crumbly and liable to leak. You accept that there’s a price to pay for character and historic heft. Most of these problems can also be lessened with some hard — and usually extremely

Which London suburbs are worth moving to?

Pre-pandemic, all you needed for a good London location was a roof terrace, proximity to a vibrant social scene and a tube station. Or a river view. Then everything changed. Whilst central areas have pretty much fallen into the doldrums, a combination of more room, better value and access to green spaces has become essential. If you had all the money in the world, you’d still locate around London’s greatest open green spaces. Hampstead Heath, Kenwood and Regent’s Park to the north, Hyde Park or St James’s Park in central London or Battersea, Richmond, Dulwich or Richmond to the south. For the rest of us, living in a shoe box with

Leaving London? The top commuter cities that will give you more space

Would you swap living in London for York? According to the latest survey on family-friendly city living, York tops the list. On a range of measures from childcare costs to average house prices and leisure activities, York is it. Unless your work or family ties take you there, I’m not convinced though. The three-hour train journey into London means a move there would more or less sever your links to the capital.   There’s no denying that the capital’s house hunters are being tempted increasingly further afield in their property searches. More space and lower prices makes it seem like a no brainer. But the jury is out on whether the pandemic will cause us