Housing: creative solutions

  Another year, another grotesque symptom of Britain's broken housing market. While families languish on ever-lengthening social housing waiting lists, consigned to the precariousness of private renting, a different story unfolds for a select few. 2024 saw a record surge in the creation of limited companies designed solely to hoover up buy-to-let properties. Sixty thousand of these entities sprouted up last year, a 23% jump from the previous "record" in 2023. Let's be clear: this isn't about providing homes ; it's about financial engineering, about exploiting a system rigged in favour of the propertied class. This isn't some sudden blip, but a deliberate, decade-long trend, turbo-charged since 2018 when the tax rules were conveniently "rewritten" for landlords. Now, nearly 400,000 buy-to-let companies stalk the land, gobbling up homes and turning them into investment vehicles. We're told 70-75% of new buy-to-let purchases are now funnelled...

  Rachel Reeves’ Spring Statement on 26th March is poised to be a defining moment. We stand at a crossroads, with stark choices before us. The Chancellor must resist the siren song of austerity and instead embrace a bold vision of investment, especially in housing, and safeguard the vital safety net of welfare. The idea that we can achieve economic growth by slashing benefits and public spending is not just misguided, it’s downright dangerous. It’s a cruel delusion to think that we can starve the very people who need support the most and somehow expect the economy to flourish. Cutting wages and benefits for the poor, the old, the sick, and the disabled is not just morally reprehensible, it’s economically illiterate. It will only deepen inequality and stifle any hope of real progress. Instead of these shortsighted cuts, Reeves must prioritise investment in social housing. A decent home is not a luxury; it’s a fundamental human right. Building more social housing will not only provid...

  As homelessness in the United Kingdom continues its relentless rise, reaching over 350,000 , the pressing question remains: why are housing associations (HAs), the wealthiest players in the housing sector, doing so little to stem this tide? With millions of pounds flowing into their coffers annually, housing associations have the financial muscle to make a significant impact. Yet, their contributions to addressing homelessness seem conspicuously limited. HAs have long been a cornerstone of social and affordable housing, managing extensive property portfolios and collecting substantial rental incomes from their tenants. These funds are intended for the maintenance and expansion of housing stock, ensuring that affordable housing remains available to those who need it most. However, a closer examination reveals that the priorities of these associations have shifted over time. The increasing pressure to operate with a business-like efficiency has led housing associations to focus o...

  Housing association tenants are more likely to be suffering from social isolation, threats to employment and exposure to Covid-19 in poorly paid jobs. Few realise that they’re also facing a rent hike. This Monday, social landlords increased their rents by 2.7%. Little wonder that pressure is growing to suspend rent payments to ease financial pressures. In countries implementing a lockdown, those renting their home are becoming more vocal on the possibility of rent strikes. Pressure is mounting across the globe and there are demands in Boston and New York in the US, South Australia and Canada . In the UK, rent strikes are being discussed in numerous major cities, notably in Islington in the capital. In Cheltenham, estate agents shop windows have been graffitied with slogans such as “Can’t Pay? Don’t”. One area where there is a greater degree of influence over rents is in housing associations. Following nearly 50 years of subsidy, these are wealthy organisations. In England, t...

Make time This path is so well trodden it is difficult to see over the sides of the trench. The legal documentation has developed over many years so there is virtually no opportunity to change it. In addition, investors need to know heir investment is secure and so satisfactory title must be demonstrated. Depending on the type of organisation and the quality of your records, this can be inordinately difficult. There is no shortcut, so start early. Do your homework The financial world is just that, a different world. Investors will know more about you than you do about them. Most are knowledgeable about housing associations and what they do not know, their in-house analysts will discover. Any credit rating (and Moody’s dominates the market) will be used to verify their analysis and may give comfort that their understanding is correct. And comfort gives confidence. Confidence can lead to a lower rate of interest – but don’t bank on it. Learn the language Coupons aren’t supermarket money-...

  Published in The Guardian, 8th February 1995