Local housing markets – local housing policies (2)

As house prices vary considerably by area as yesterdays blog showed. Although there are factors which have an influence across England there are also local (and not so local factors).

Just by moving from one area to another people can increase house prices if they come from an area with higher house prices.

The objective should be to create a level playing field so that people living in an area with high house prices/values, cannot use the excess value to push up house prices in an area with lower prices.

Each area – probably an (old) county or large city would constitute a local housing market (LHM).

Purchasers would be free to buy within the LHM.

If a purchaser wanted to move to an area with lower prices, they would only be able to bid at the local price. The difference in price between the new and old location would be transferred into a central fund. [For example, if you wanted to move from Merton to Cornwall, you could pay no more than £216,700 for a property. The difference of £292,500 would be deposited in the central fund].

Local housing policies for local housing markets (1)

House prices vary considerably from one part of England to another. These variations reflect the interplay of various factors including local earnings levels; local demand for housing; external demand for housing (due to lifestyle moves, second homes, job moves); the desirability of the area in terms of environment and landscape.

At the bottom of the list we find Burnley with an average house price of £75,174, at the other end of the scale Kensington & Chelsea at £1,406,839. Average house prices in Cornwall were £216,686.

The average price for a home in London was £471,742. If we take the London average, it means that someone selling in London could buy 2.2 properties in Cornwall or 6.3 in Burnley.

In fact there were 93 local authorities in England where house prices were 1.5 or more times the Cornish average. Thats quite a lot of people who could in theory purchase a home in Cornwall and be in pocket. They can easily outbid local potential buyers.

What are the options?

Build more houses to reduce house price growth – not an option – the housing sector would make sure those extra houses were marketed outside Cornwall

Change the tax system – how?

Tomorrow we will explore a novel idea, lets wait and see!

Local authorities compared below, the third figure refers to house prices in relation to the Cornish average.
Local authorities 2017
Kensington And Chelsea 1406839 6.5
City of Westminster 1055350 4.9
Camden 866681 4.0
Hammersmith and Fulham 755233 3.5
City of London 743781 3.4
Richmond upon Thames 675435 3.1
South Bucks 638210 2.9
Islington 615100 2.8
Elmbridge 601779 2.8
Wandsworth 594121 2.7
Haringey 571511 2.6
Hackney 571016 2.6
Barnet 554735 2.6
St Albans 529742 2.4
Chiltern 527173 2.4
Lambeth 512409 2.4
Three Rivers 512128 2.4
Merton 509193 2.3
Southwark 495327 2.3
Mole Valley 493908 2.3
Kingston upon Thames 488416 2.3
Windsor and Maidenhead 484201 2.2
Ealing 483927 2.2
Brent 482538 2.2
Harrow 473019 2.2
Epping Forest 461863 2.1
Hertsmere 458615 2.1
Tandridge 451848 2.1
Waverley 448223 2.1
Tower Hamlets 444397 2.1
Epsom and Ewell 441168 2.0
Guildford 437728 2.0
Surrey 437726 2.0
Bromley 433008 2.0
Waltham Forest 432759 2.0
Oxford 426393 2.0
Cambridge 420734 1.9
Wokingham 416623 1.9
Woking 416088 1.9
Hillingdon 415716 1.9
Lewisham 414721 1.9
Sevenoaks 410196 1.9
Hounslow 406976 1.9
Brentwood 406841 1.9
Redbridge 406522 1.9
South Oxfordshire 402599 1.9
Buckinghamshire 400255 1.8
Winchester 400118 1.8
Dacorum 395331 1.8
Hertfordshire 394501 1.8
Hart 394440 1.8
Reigate and Banstead 393962 1.8
Enfield 393414 1.8
Runnymede 392841 1.8
Surrey Heath 386854 1.8
Welwyn Hatfield 386746 1.8
East Hertfordshire 384841 1.8
Wycombe 383636 1.8
East Hampshire 376224 1.7
Chichester 374904 1.7
Uttlesford 372668 1.7
South Cambridgeshire 371675 1.7
Sutton 371383 1.7
Greenwich 368451 1.7
Tunbridge Wells 368166 1.7
Horsham 367665 1.7
Croydon 367160 1.7
Watford 363543 1.7
Spelthorne 363373 1.7
Havering 362983 1.7
Mid Sussex 358690 1.7
Cotswold 357853 1.7
Broxbourne 356319 1.6
Newham 353300 1.6
Brighton and Hove 353176 1.6
Oxfordshire 351703 1.6
Bracknell Forest 347234 1.6
Vale of White Horse 344441 1.6
West Berkshire 340125 1.6
East Dorset 338056 1.6
Bexley 334053 1.5
Bath and North East Somerset 333930 1.5
Tonbridge and Malling 332947 1.5
Aylesbury Vale 328009 1.5
Rochford 326851 1.5
Christchurch 326707 1.5
West Oxfordshire 325156 1.5
North Hertfordshire 324519 1.5
Chelmsford 323866 1.5
Wealden 323005 1.5
Purbeck 321741 1.5
New Forest 321415 1.5
Test Valley 320510 1.5
Maldon 312573 1.4
West Sussex 311301 1.4
Reading 305213 1.4
South Northamptonshire 304723 1.4
Hampshire 304535 1.4
Dartford 302056 1.4
Slough 300757 1.4
Lewes 299847 1.4
Basingstoke and Deane 299309 1.4
Essex 296869 1.4
Stratford-on-Avon 296268 1.4
Adur 296128 1.4
Basildon 295760 1.4
Poole 294450 1.4
Warwick 294123 1.4
Central Bedfordshire 292700 1.4
Cherwell 289756 1.3
Canterbury 285168 1.3
Dorset 283691 1.3
Castle Point 283135 1.3
Rushmoor 282865 1.3
Cambridgeshire 282737 1.3
South Hams 280892 1.3
Ashford 279887 1.3
Maidstone 279887 1.3
Fareham 279706 1.3
East Cambridgeshire 277856 1.3
Barking and Dagenham 277508 1.3
Kent 276850 1.3
Rutland 276655 1.3
Rother 275453 1.3
Gravesham 274844 1.3
West Dorset 273868 1.3
Bedford 273216 1.3
Suffolk Coastal 273034 1.3
Arun 272512 1.3
Daventry 272003 1.3
Crawley 270834 1.2
Harlow 270782 1.2
Braintree 270412 1.2
East Devon 269989 1.2
St Edmundsbury 269964 1.2
Bromsgrove 268552 1.2
Harrogate 266885 1.2
Wiltshire 265764 1.2
Eastleigh 265676 1.2
East Sussex 263744 1.2
Stevenage 263388 1.2
Babergh 263199 1.2
Solihull 262403 1.2
Trafford 262071 1.2
Stroud 261139 1.2
Milton Keynes 260917 1.2
City of Bristol 260270 1.2
Worthing 259565 1.2
Havant 259328 1.2
Southend-on-Sea 259325 1.2
Thurrock 258805 1.2
Rushcliffe 256820 1.2
Mid Suffolk 256380 1.2
Harborough 255438 1.2
South Gloucestershire 255073 1.2
Cheltenham 254752 1.2
Wychavon 254359 1.2
Malvern Hills 253212 1.2
Tewkesbury 251623 1.2
North Dorset 251414 1.2
Broadland 250702 1.2
Colchester 248628 1.1
Huntingdonshire 248298 1.1
Mendip 246741 1.1
Gloucestershire 245787 1.1
South Norfolk 245517 1.1
North Somerset 244353 1.1
Derbyshire Dales 243874 1.1
York 241042 1.1
Devon 241028 1.1
Exeter 240466 1.1
Teignbridge 236624 1.1
Shepway 235957 1.1
Lichfield 235426 1.1
Bournemouth 234609 1.1
Eastbourne 232802 1.1
North Norfolk 232564 1.1
Warwickshire 232532 1.1
England 232530 1.1
West Devon 232097 1.1
Suffolk 231702 1.1
Luton 230809 1.1
Medway 230339 1.1
Swale 229141 1.1
Dover 227095 1.0
South Lakeland 223008 1.0
North Devon 221572 1.0
Somerset 220643 1.0
Worcestershire 220003 1.0
Rugby 219076 1.0
Taunton Deane 218683 1.0
South Somerset 217428 1.0
Melton 217313 1.0
Thanet 216958 1.0
Cornwall 216686 1.0
Forest of Dean 216357 1.0
Ryedale 216295 1.0
Herefordshire 215656 1.0
Hambleton 214389 1.0
Torridge 214092 1.0
Weymouth and Portland 213766 1.0
West Somerset 213259 1.0
Forest Heath 213159 1.0
East Northamptonshire 212920 1.0
Northamptonshire 211530 1.0
Norfolk 211390 1.0
Mid Devon 210707 1.0
Cheshire East 209611 1.0
Leicestershire 208246 1.0
South Staffordshire 207624 1.0
Sedgemoor 207353 1.0
North Yorkshire 207106 1.0
Breckland 206548 1.0
Swindon 204625 0.9
Hinckley and Bosworth 204267 0.9
Ribble Valley 203661 0.9
Charnwood 203537 0.9
Tendring 202688 0.9
Blaby 202294 0.9
Shropshire 202178 0.9
Southampton 201983 0.9
Craven 201704 0.9
Oadby and Wigston 200663 0.9
Stockport 200457 0.9
Isle of Wight 198865 0.9
Northampton 198628 0.9
Portsmouth 197141 0.9
King’s Lynn and West Norfolk 196948 0.9
South Kesteven 196906 0.9
Worcester 196682 0.9
Fylde 195672 0.9
Gosport 195617 0.9
Norwich 195590 0.9
Wellingborough 194374 0.9
Richmondshire 194293 0.9
Hastings 193821 0.9
Stafford 192235 0.9
Cheshire West and Chester 188530 0.9
Torbay 188280 0.9
Eden 188254 0.9
Redditch 188050 0.9
North Warwickshire 187361 0.9
Ipswich 187183 0.9
Selby 185881 0.9
North Kesteven 185850 0.9
North West Leicestershire 185350 0.9
Gloucester 185348 0.9
Waveney 184121 0.8
Kettering 183548 0.8
South Derbyshire 182801 0.8
South Holland 179616 0.8
Warrington 178487 0.8
Staffordshire 177488 0.8
High Peak 176087 0.8
Fenland 175347 0.8
City of Peterborough 174488 0.8
East Staffordshire 173920 0.8
West Lancashire 172874 0.8
Tamworth 171038 0.8
Wyre Forest 170846 0.8
Lincolnshire 170322 0.8
North East Derbyshire 169586 0.8
Broxtowe 168543 0.8
Leeds 168293 0.8
East Lindsey 167722 0.8
City of Plymouth 167566 0.8
East Riding of Yorkshire 167207 0.8
Coventry 166324 0.8
Birmingham 165182 0.8
Chorley 163835 0.8
Derbyshire 163039 0.8
Newark and Sherwood 162833 0.8
Amber Valley 162566 0.8
Corby 161947 0.7
Gedling 160720 0.7
South Ribble 159813 0.7
Staffordshire Moorlands 159362 0.7
Scarborough 159265 0.7
Nottinghamshire 159096 0.7
Dudley 158946 0.7
Manchester 158403 0.7
Telford and Wrekin 157021 0.7
Great Yarmouth 156829 0.7
West Lindsey 156772 0.7
Nuneaton and Bedworth 156382 0.7
North Tyneside 155392 0.7
Cannock Chase 154895 0.7
Bury 152917 0.7
Wirral 151487 0.7
Leicester 151474 0.7
Newcastle upon Tyne 151456 0.7
Cumbria 150556 0.7
Sefton 148974 0.7
City of Derby 148650 0.7
Salford 148231 0.7
Sheffield 147964 0.7
Erewash 147867 0.7
Wyre 147490 0.7
Walsall 146537 0.7
Northumberland 146332 0.7
Allerdale 145982 0.7
Lancaster 144805 0.7
Chesterfield 144479 0.7
Boston 143410 0.7
Newcastle-under-Lyme 141701 0.7
Lincoln 140345 0.6
Bassetlaw 138730 0.6
Kirklees 137130 0.6
Lancashire 136344 0.6
Wolverhampton 135940 0.6
Carlisle 135326 0.6
Wakefield 135170 0.6
Halton 133996 0.6
Sandwell 133015 0.6
Stockton-on-Tees 132826 0.6
Tameside 132712 0.6
North Lincolnshire 131684 0.6
Rotherham 130817 0.6
Bradford 128376 0.6
Knowsley 128267 0.6
Calderdale 127498 0.6
City of Nottingham 127302 0.6
Darlington 127286 0.6
Ashfield 126392 0.6
Preston 125268 0.6
Wigan 124916 0.6
St Helens 124563 0.6
Bolton 124558 0.6
Gateshead 124332 0.6
Rossendale 123801 0.6
Mansfield 123370 0.6
Rochdale 122916 0.6
Liverpool 122283 0.6
Oldham 121005 0.6
Doncaster 119966 0.6
South Tyneside 119574 0.6
North East Lincolnshire 117353 0.5
Copeland 117064 0.5
Redcar and Cleveland 115962 0.5
Bolsover 113744 0.5
Barrow-in-Furness 110999 0.5
Middlesbrough 110730 0.5
Barnsley 109636 0.5
Sunderland 109053 0.5
Blackburn with Darwen 103764 0.5
City of Kingston upon Hull 103254 0.5
Blackpool 101125 0.5
Stoke-on-Trent 100079 0.5
Hartlepool 99794 0.5
County Durham 99188 0.5
Hyndburn 93507 0.4
Pendle 88346 0.4
Burnley 75174 0.3

Cornish myths and legends – the housing is pretty good value?

Now I’m not saying that Cornwall is the cheapest place to live in England (there are some extremely expensive areas here!), but compared to London or inner city living, it’s pretty good value! This is also reflected in Cornish salaries, but again, people usually come here for the atmosphere and work/life balance, not to become billionaires.

https://thecornishlife.co.uk/10-reasons-why-i-live-in-cornwall/

We wonder what is meant by ‘pretty good value’ and for whom?

House prices in Cornwall are probably good value if you sell a property in London and move. For example, in Islington a 1 bed flat would cost say £525,000 or a 3 bed maisonette £750,000. And in Cornwall?

You might get a semi-detached in Padstow for £250,000, or a plot in Tintagel with planning permission for £100,000. You would have lots of money left over after your sale – pretty good value – but if you live in the area on Cornish wages – not so good!

Cornish myths and legends – the lifestyle!

Myths and legends about giants, buccas and assorted spirits used to abound in Cornwall, tales to frighten the children or to provide entertainment in pre television and internet days.

Now we find another set of myths are common currency, these include tales about how people live in Cornwall as the following illustrates.

One of the best things about my blog is having people reach out to me with questions about moving to Cornwall.

I love hearing from city-dwellers and coast-dreamers wondering how best to go about moving or asking if I have any advice on the matter, and it makes me so happy that people find my little internet space useful for learning the low-down on all things Cornish!

So I thought I’d write a bit of an FAQ post with some of my tips and thoughts for anyone stumbling across this blog whilst trying to find out more about living and moving to Cornwall…

Q: Is it really possible to have the dream lifestyle in Cornwall?

I get it; the Cornish lifestyle is so hyped up by everyone, you’ve gotta wonder if it’s all too good to be true! But I can tell you from firsthand observance and experience that yes, people actually do fit in an early morning surf before work, we do head to the beach once it hits 5pm, and we do spend our weekends exploring the countryside and having adventures in the sea. It’s not a myth – it’s our real life I promise!

https://thecornishlife.co.uk/moving-cornwall-relocating-faqs/

Now in reality, most people in Cornwall do not have lifestyles remotely like this. People are too busy working – invariably in low paid jobs, making ends meet as cuts in Government spending eat into incomes and coping with cuts to services as the Government reduces resources.

But this type of myth is not mean for the average Cornish resident, it’s aimed as the blog states, at those who are thinking of moving to Cornwall. It is part and parcel of the process by which houses are built in Cornwall not to meet local needs but to meet the demands of people living elsewhere. Demand which is encouraged by blogs like the one referred to.

It is in fact a dangerous process. Not only does it lead to unsustainable population and housing growth but it feeds into the myth that houses are being built to satisfy a local need and therefore don’t complain.

As the resident of Redruth commented, “they wouldn’t be building houses if they were not necessary” what she did not say or ask was necessary for who?

UKIP manifesto, housing – short on detail!

The last of the big four parties that produce policies for England.

Successive governments have failed to meet the housing needs of an increasing population. Of the 140,000 homes due to be built this year,
80,000 will be absorbed by population growth, exacerbated by immigration, so at best only 60,000 will begin to address the current chronic shortage.

Labour, the Conservatives, and other parties in this election will promise to build hundreds of thousands of new homes, but their plans are not credible. There are not enough workers in the traditional construction industry to meet their targets. Planning permission remains slow and difficult to obtain and developers have no incentive to build more, because under-supply boosts their margins and land bank values.

UKIP is the only party being realistic about what can be done to increase the housing supply and putting forward a viable solution: a bold policy to roll out high quality, low cost factory built modular (FBM) homes, affordable on the national average wage of £26,000.

What can we say about this manifesto?
Its limited in its detail;
It is as far as we know the only manifesto that refers to the impact of population growth on housing demand;
Rather oddly it thinks there are insufficient workers in the construction sector (strange how there seem to plenty on hand to build luxury houses!);
Planning permission slow and difficult to obtain – really? We think not;
True under-supply does benefit developers profits (as does building luxury housing);
Factory built homes – ah well!

No reference to second homes, holiday lets or housing for investment; no recognition that we build more houses than there are households.

Overall, the manifesto appears not to have been well thought out, though that could be a statement about other manifestos!

The Green party – some good bits, lots of missed opportunities and no housing target!

The Green party manifesto in the section ‘A Place to call home’, states:

· A living rent for all through rent controls and more secure tenancies for private renters, an end to letting fees and the introduction of
mandatory licensing for all landlords.
· Giving tenants a voice by supporting the development of renters’ unions.
· A major programme to build affordable, zero carbon homes, including 100,000 social rented homes each year by 2022.
· End mass council house sales and scrap Right to Buy at discounted prices.
· Abolish the cruel and unfair bedroom tax.
· Action on empty homes to bring them back into use and a trial of a Land Value Tax to encourage the use of vacant land and reduce speculation.
· Protect young people’s housing needs by reinstating housing benefit for under 21s and reverse housing benefits cuts.
· Stop declaring people as ‘intentionally homeless’ and give Local Authorities the same duties towards single people and childless couples as to
families.
· Help first-time buyers by aiming for house price stability – axing buy-to-let tax breaks, and backing community-led approaches to building
affordable homes.
· Significantly improve housing choice for D/deaf, disabled and older people by requiring all councils to appropriately plan for their housing
needs and significantly increase the numbers of homes built to lifetime home and mobility standards over the next 5 years.

Again lots of areas left – second homes, holiday lets, population increase due to immigration.

More housing on the way – but its got nothing to do with meeting local need!

Linden Homes have an advert for the new development at Shortlanesend

Thinking of a summer move? Then now’s the time to get moving. Make your move to The Meadows and move in time to spend this Summer in the beautiful Cornish countryside! The Meadows is a charming collection of 2, 3 & 4 bedroom houses for sale near Truro, with prices from £319,950.

Visit us and explore our range of houses for sale in Shortlanesend.

http://www.lindenhomes.co.uk/developments/cornwall/the-meadows-shortlanesend

More homes to meet local need?
We think not.
The reference to ‘the beautiful Cornish countryside’ is obviously aimed at buyers who do not live in the area!
The price – from £319,950 – not many households in Cornwall could get the funding for that.

Whoever forms the next Government there will more developments like this, more housing but not for local need.