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Guest post: "I am a victim of the housing crisis - why is nobody offering a sustainable solution?"

75 replies

MumsnetGuestPosts · 29/04/2015 17:17

This election is extraordinary because for the first time in a very long time, housing is a top issue. All the political parties have something to say about it and are making pledges left, right and centre. But what exactly is being offered, and are these promises likely to lead to a real solution to the housing mess many of us find ourselves living in?

The housing crisis is a multifaceted thing, and my situation represents just one of those faces. My renter profile is familiar: professional in full-time employment; over 40; married with young children; a long-term private renter. I know there are a lot of people like me. Judging by the type of pledges made, I also surmise that politicians find this group the easiest to ‘deal with’. Maybe that's because we appear to fit nicely into the ‘hardworking family’ rhetoric with which they are so enamoured, or maybe they think us likely to vote.

Let's start off with that ‘private renter’ aspect of my profile. Labour talk of making three year tenancies standard, thereby reducing the number of moves within the sector, and limiting rent rises to the rate of inflation over a three year period. They say they'll also regulate the sector through a register of landlords and the (mildly) punitive treatment of ‘rogue landlords’ who keep poorly maintained properties. The Lib Dems place some focus on rental properties too, saying they will force landlords to adequately insulate properties. The Greens promise five year tenancies and capped rents. The Tories, meanwhile, have said nothing. The cynic in me might wonder how effective any of these policies will be, but at least they are a good first step towards building a better and more equal private rental sector.

Helping private renters is one thing, but when it comes to first time buyers, the parties have come out all guns blazing. There is a whole array of promises on offer designed to provide me with what politicians think I want and so will be swayed to vote for - a home of my own. The Conservatives are pledging 200,000 new homes specifically for first time buyers under 40 at a 20% discount. They want to help me to save a deposit through an ISA and they will continue their Help To Buy scheme which allows smaller deposits and lower repayments for a set period of time. Not wishing to be outdone, Labour want to give those who've lived in an area for three years first choice of 50% of the new builds in an area. In addition, they intend to suspend the payment of stamp duty for three years for first time buyers on properties up to £300k.

None of this is much good to me though: I'm over 40; I have no money to save because I'm paying rent and have a family; haven’t lived in the same area for three years because being a private renter means I have to move a lot; and won’t be able to raise the mortgage required thanks to my huge monthly outgoings which will be scrutinized in accordance with stricter lending rules. For me - and I imagine for lots of you – the first time buyer promises are of little practical use.

However, the glaring problem with all of these promises is that whilst they might help a few people on an individual level, they won’t manage the crisis as a whole. The overwhelming focus on first time buyers seems to ignore the fact that this housing crisis is not all about them. It's also people like Janice, who lives with her family in a room in a homeless hostel and has done for five and a half years. What's on offer for her? Or people like Stacie, living with leukaemia in the private rental sector with her daughter who has severe disabilities and yet still unable to get to the top of a social housing list to access suitable accommodation. Or Jasmin, who was forced out of the London borough she has known all her life by extortionate rents. These people are affected by this crisis too, but they are so much less attractive in terms of policy making, it seems. This much I know: the solution to their housing crises are the solution to mine too.

The political parties are right to identify me as an aspiring homeowner, but they are wrong to class me an individualist. Along with the worries I have about my family's immediate situation I have other broader concerns linked to the situations Janice, Stacie and Jasmin and many others find themselves in. Those will not be alleviated by helping me to buy a house or to remain in my privately rented house, but by building more - and particularly building more social and genuinely affordable housing - and that is something none of the major parties seem willing to commit to, with the exception of the Greens. What the mainstream parties consistently fail to realise is that as much as people care about ‘me and mine’, they also care about what happens to their neighbours and in their communities. Who is offering us a housing solution that doesn't leave hundreds of thousands of people still floundering? That doesn't mean others lose when people like me gain? Nobody, as far as I can see.

OP posts:
Cherriesandapples · 30/04/2015 11:54

I am same age as you and I own home outright! You had other priorities which is your choice but don't moan now because you didn't have foresight yo make home ownership a priority for you.

SingingHinnies · 30/04/2015 11:56

People say it's hard to get a council house but in all honesty, the thread's i have seen on here at times, even if they were built and offered would professionals take them. In the NE there is a situation due to bedroom tax where there is a massive oversupply of 2 bed flats to the point they were considering knocking a whole tower block of 2 bed's into 1 bed flat's. Why is there a massive oversupply of 2 bed flat's, people were moved out of them to free them up but no one want's them, people on benefit's can't take them as they will be subject to bedroom tax so that should leave them free for people who are working.

For the first time in decade's there is social housing going up, 2300 in my town, mixed estate's of social and affordable housing. The tories sold off the housing but Labour also had 13 years to replace it and didn't bother. At last at least some housing is going up

Cherriesandapples · 30/04/2015 11:57

Sorry, it's rubbish that people in their forties couldn't foresee how the housing market would be. I know loads of people in their forties who aren't renting but own property.

TerryTheGreenHorse · 30/04/2015 11:58

Cherries what are you on about?

Cherriesandapples · 30/04/2015 12:07

The OP is in her forties and she says that her generation (my age) couldn't foresee that that house prices would rise excessively and that she would be stuck renting in her forties. It was pretty obvious how things were going yonks ago!

cestlavielife · 30/04/2015 12:08

btw most people dont "own" their properties - they have a mortgage and are paying the bank. the bank owns the property until it's paid off.... so when you talk about home ownership you talking about increasing the number of people with a 25-30 year mortgage debt to a bank, secured on property which they get to live in. they effectively also renters - but from the bank..."rent to buy" . oh hang on didn't someone just totally invent that as a manifesto promise...?? duh...

home ownership for young people (tying into a bank mortgage) is not necessarily ideal - as they find it harder to move to new jobs etc. there needs to be mix of accessible (ie reasonable rents) rented property available in all locations for teachers, junior doctors, profressionals, etc. people just starting out. so they might wait until their 30s or even 40s...then if prices have risen as they have it's impossible.

tying in people under 40 to a mortgage is a political ideological move.

Cherriesandapples · 30/04/2015 12:15

Cestlavie, true, all true!

Housing is so expensive, particularly in some areas, because too few properties are available. The only way to have lower housing costs whether rented, owned or mortgaged is to have more properties and less people after those properties. No party is prepared or able to tackle this to the extent it needs to be tackled.

Mumblechum1 · 30/04/2015 12:18

You're right c'est la vie about young pple (I'm thinking 21 year olds) not wanting to necessarily stay in the same place as they'll no doubt relocate to follow their career but I'll be advising (and partially bankrolling) my ds, who graduates next year, to invest in a 1 bed flat somewhere and if he ends up moving he can just rent it out till he eventually settles. That way he'll have a small investment which will help towards a family home one day.

BeCool · 30/04/2015 14:50

As a Londoner I see the property problem mainly as a case of the rich getting richer and the poor getting poorer.

Those who got on the property ladder at the right time gained massive equity in their homes. When prices rose substantially those who had all this equity had a massive advantage and an asset they can use to secure a mortgage on a "buy to let" or other 2nd property - perhaps to help their children out in buying. While those who don't own, and whose parents don't own, face increasing rents, find it harder to save for the ever increasing deposit. Spiral up, spiral down. It's very clear to me that this is how it works.

We are often pushed the idea that "buy to letters" are the saviour of the housing market as they provide much needed rental housing, but if they weren't in the 2nd/3rd/4th property market, the market wouldn't grow so ferociously, more people would be able to buy and less rental accommodation would be required.

It's not the only factor - of course its a compelx issue - but it is one of the major reasons people an't afford to buy these days.

I live in a one bed shared ownership flat with my 2 fast growing DC - Shared Ownership has gone off on a massive tangent - it's no longer about affordable housing but about buying at "market rates". The only "affordable" aspect of it is that you pay "market rent" on the piece you don't own. Many SO schemes these days are only "affordable" because the share you purchase is 25% - like the ones linked to above.

Foreign investment ownership is also a massive problem - those properties just sit there - many aren't even rented out, the market is over inflated etc.

fielsted · 30/04/2015 15:45

Some of the responses to this post which seem to focus on me and my choices as an individual remind me of why I felt the need to write this one some time ago:
fielsted.wordpress.com/2014/06/01/what-do-people-think-when-they-find-out-i-rent-privately/

Jackieharris · 30/04/2015 15:47

Reading threads like this you'd think Scotland didn't exist!

stubbornstains · 30/04/2015 17:37

That's an interesting article fi....FWIW, I'm 41, and a graduate with an MA, one child and another on the way. And I rent privately, and am also dependent on housing benefit. (Would it surprise you to know that my degrees are in the arts? Hmm). I am also a single parent.

I suppose that I have completely given up on the idea that I will ever own my own home, and have also given up on the aspiration to (unless, conversely, my parents and aunt, who both own houses in the SE- one in London- should pass away without needing to go into care homes, and the housing bubble hasn't burst by then. By which time I will probably be in my 60s. IF it happens. It's a strange thing to be contemplating, anyway- either total loser or total winner in the Great Housing Lottery Hmm).

I think it's far better to focus on the idea that there is nothing wrong in renting, and to campaign for better legislation and more social housing with security of tenure.

The British obsession with home owning has proven to be corrosive, divisive, and an enormous driver of inequality, IMHO.

fielsted · 30/04/2015 18:00

stubbornstains I agree wholeheartedly Smile

expatinscotland · 30/04/2015 19:15

Wow, some real hatred and shaming of people who, for whatever reason, didn't get 'on the ladder'. How utterly appalling, demonising people who rent and asserting this as a personal failing. Whatever next, demonising the poor, including in-work poverty?! . . . oh, wait.

Maliceaforethought · 30/04/2015 20:25

This reply has been deleted

Message withdrawn at poster's request.

Cherriesandapples · 30/04/2015 21:41

No one is demonising anyone. I don't quite know why the OP posted. Initially I thought she wanted a debate about what could be done but she has not really debated any points raised effectively. She raised her own circumstances then seemed surprised that people commented on her own circumstances. she said that she was a "victim" (although actually Mumsnet changed her title so she never actually said that. Then generalised that people in their forties had no inkling that houses prices would become totally unaffordable when clearly the writing was on the wall in large capitals about that one many years ago. The point I was making that she isn't a victim she did have choices. Choices which younger people now do not have. I think immigration has played a major part in that. No lefty person will ever admit that. Other reasons as well, not debated or responded to by OP!

WhistlingPot · 01/05/2015 20:03

When we were in a position to think about buying (in the SE) the offers on the table were ludicrously reckless mortgages being given away like toffees. Do forgive me for not jumping on the bandwagon which played a huge part in our financial downfall.

We opted to wait for some sensible policies to be made which balanced personal gains with the needs of society.

senrensareta · 02/05/2015 00:32

The problem is that any solution which provides affordable housing will reduce the value of existing housing so for every vote gained there could be one lost.

We are in our 50s and own our own home, it is our largest possession and if it were to lose a huge amount in value it could jeopardise our retirement plans. Our son and his GF have just managed to get onto the property ladder, any drop could affect their future badly and there are many more ordinary people just like us so a solution will never be easy

merrymouse · 02/05/2015 07:28

I don't think the continuing inflation of the house price bubble was completely predictable. It is sustained by low interest rates and at some point they will increase.

Snog · 02/05/2015 07:47

If we reclassify 5% of green belt land and make developers provide one social housing unit for every private unit this would have a massive impact on the number of houses and social houses and thus drive prices down.

wannabestressfree · 02/05/2015 07:54

Cherries your like a broken record- and a dislikable one at that. You made your point, I happen to think it's a load of tosh......

BeCool · 10/05/2015 10:10

Yes yes wannabe hit the nail on the head.

woodhill · 18/05/2015 14:26

what happened to the affordable housing scheme for key workers such as teachers and nurses, that was sensible.

of course immigration has some bearing on our current situation, they need housing.

Applesauce29 · 30/09/2015 09:29

Immigration has had a massive impact, particularly in London. It's also had a devestating knock on effect on lack of school places as catchment areas have shrunk massively to the point where you have to be nearly on the same street for really good or outstanding schools in the capital.

smange · 04/10/2015 07:38

I agree with Cherriesandapples in regards to reducing foreign investments and taxing second homes. That would be an ideal way to free up more homes for the buying, and hence reduce the prices.

Building homes that are affordable could also make a big impact.

But mostly, there are just lots of people who have been paying high rent all their life and have been unable to save because of it. Perhaps the best option to help these people out would be more rent-to-buy type schemes through private companies.

Something's got to happen anyway.

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