I think at the Risk of re-iterating myself is an excellent title for a blog about Affordable Housing. The Housing Crisis as a class of problems is really too wide a category to be anything more than a meme. One could usefully just go with the Title "The Problem of Housing everyone", and take that as a neutral starting point. This mind map is the distillation by the writer of 2 years of deep research into Housing affordability, on top of a 35 year career in the property business in various capacities. Any career in property would involve periods during which some specialisation would be necessary, in order to make a living, which specialists or experts would one consult if one were to look at the problem of housing everyone? In the 1945 film The Ten Year Plan (1945) which I edited into a 6 minute short called Home@ix steeling the show.
there is a scene where the production supervisor instructs the films main character the "Louche", Charles Martin, played by Charles Hawtree, that.. "As well as the Steel experts you should interview ordinary members of the public". Affordable Housing for who?
If you click on the above image you will find a copy of Motivating Collective Custom Build (MCCB) Project ( Starts at page 55), The excellent original web site can still be accessed on the Wayback machine https://web.archive.org/web/20130904160957/http://collectivecustombuild.org/ . This is clearly not a Red team Blue team issue, many initiatives though have been rejected by one or other of the red and blue team on a "Not Invented Here " basis , a most curious form of nimbyism you might say.
Try the Home@ix Understanding Affordable Homes Mindmap Click here
Veteran filmmaker Lewis Gilbert (Alfie, Educating Rita) made his directorial debut with this quirky documentary, promoting the contribution of the British steel industry during the nation's housing crisis in the wake of WWII. A pre-'Carry On' Charles Hawtrey appears as a writer assigned to investigate the strange new phenomenon of the 'prefab' - steel-framed prefabricated homes designed to take advantage of wartime advances in mass production. At the end of WWII, the need to replace housing that had been damaged or destroyed in air raids was so acute that prefabricated houses - known as 'prefabs' - were investigated as a short-term alternative. The post-war housing minister, Nye Bevan, dismissed them as "rabbit hutches" but, curiously, the prefab came to be one of the most popular forms of council housing because of its size, its garden and the privacy it afforded. Directed by the prolific British director Lewis Gilbert ('Alfie', 'Educating Rita') early in his career, 'The Ten Year Plan' stars 'Carry On' actor Charles Hawtrey as a louche young writer sent to report on a range of prefabs, discovering with some surprise that many of them look like "real" houses.
Boris mentioned this yesterday in PMQ's, will look at details. If Boris want to give the right to buy to Low Paid workers , he would get the Bank of England to establish a regional Mortgage Finance corporation ( Building Society, but not necessarily mutualised) The Bank would originate finance for Land purchases, construction finance and long term mortgages . The mortgages would be held by individual home owners in stead of for profit private landlords. . Proudhon described such a system.
"he proposed to obtain by means of a national bank, based on the mutual confidence of all those who are engaged in production, who would agree to exchange among themselves their produces at cost-value, by means of labour cheques representing the hours of labour required to produce every given commodity. Under such a system, which Proudhon described as ” Mutuellisme,” all the exchanges of services would be strictly equivalent. Besides, such a bank would be enabled to lend money without interest, levying only something like 1 %, or even less, for covering the cost of administration. Everyone being thus enabled to borrow the money that would be required to buy a house, nobody would agree to pay any more a yearly rent for the use of it. A general ” social liquidation ” would thus be rendered easy, without violent expropriation. The same applied to mines, railways, factories and so on. ”
A good way to deal with creating such a "State Bank" would be to implement Gordon Browns , Federalised Bank of England, Scotland, Wales and Ulster. This would scotch the Scots Nat's, as per PMQ's handbags between Boris and Ian Blackford, but would also stimulate activity at the end of the market that needs it.
Within that larger pure banking structure, the sorts of Bonds Home@ix is proposing and which Berkley homes floated last year
could be underwritten by the new federated land banks of England, Scotland, Wales, and Ulster. a sort of rentenmark solution
In that little lot the whole Home@ix model was found, the Home@ix approach is for one segment of the Market the reluctant 10%, Rungs 1-25 and rungs 35-50 could quite seamlessley and for great benefit be worked into the brief of the regional English landpound Scottish Land Pound, Welsh Landpound and Ulster Landpound. etc, so forth and so on.
This is a wide-ranging discussion with Ranjan of London Conversation on the Home@ix re-patterned Knitting in response to the emerging Going Direct Paradigm. Each group has its own economic interests and perspective foremost in mind when it analyses the economy and promotes a particular viewpoint. Politicians, economists, and business people rarely promote analysis that conflicts with their group interests. Clarity and analytical integrity generally work against private interests and are usually absent. Home@ix here, In an attempt to seek out and further the public interest on the question of affordable housing, sets out the arguments even where this may conflict with the privileged private interests which usually dominate the analysis and debate in corporate discourse, especially whilst either promoting or seeking investment patronage.
We would ask the easily shocked to consider that the uncompromising approach in This video will pose a major challenge to those who have learned their analysis exclusively through channels devoted to promoting privileged and usually private interests, and please be advised that you must “unlearn” erroneous but pervasive assumptions and principles ( If only temporarily ) to consider the Customer viewpoint in these questions.
We have adopted this approach to seek out and understand what there may be in these discussions which provide a set of parts for a model to make the Old broken models obsolete, following the advice of Bucky Fuller.
Moduloft(1) is a Modular Residential Manufacturing System applying mass production Line supply chain and assembly line Technologies to the production of affordable homes. Founded by Roger Lewis a veteran urban regeneration expert with a long history in the Regeneration of London Docklands both as a consultant and principal.
(1) Moduloft was a development name for our Concepts Loftm@ix is a Brand available in our new Range under the Home@ix brand. 2. Roger Trained as a Chartered Surveyor and qualified as an Associate of the Royal Institution of Chartered Surveyors in 1990 having worked for Shell UK, The Prudential Assurance Company, London Shop PLC, Hillier Parker May and Rowden . Roger has been self employed Since 1990. Executive Summary. 3. The Crisis in affordable housing has been well known and increasingly acute since the Mid 1990’s. Provision of suitable housing has traditionally been through a mixture of Local Authority Provision, Private Landlords and Through Home ownership supported by Mortgage Society Home loans ( Mortgages). With the Liberalization of the UK housing market since the early 1980’s and light touch regulation of the finance sector the financing of and distribution of types of housing has changed considerably. 4. Land use policy through the planning and regulation framework, Government policy and Regulation of Rent levels , financial firms and so forth affect availability of land for development. These supply side variables as well as demand for accommodation near employment opportunities all present a myriad of dynamic variables which are often treated as discrete problems within their own boundaries. Different sets of Experts and various vested interest Agendas all explain their estimation of the problem often pulling in opposing and contradictory directions. 5. There are two broad categories of Residential Property Homes for rental and Homes for Owner occupation. Rental homes for social housing provision exist as a fact of life for those without the means to become owner occupiers or as temporary longer term accommodation for people with a temporary need to be in a community for longer than a guest spell of time but shorter than justifying the costs of acquisition inherent in making a long term mortgage commitment. 6. Whether properties are built for Rent or for sale Finance plays a very large role in both funding development and providing long term mortgage finance 7. The Modern Property Market is based around the repayment of privately created debt money. This is distributed through the banking system. Banking interests operate a cartel setting the terms and conditions for issuing fresh debt money short term for development and longer term for mortgages. This aspect of the Housing Market is usually looked at through the lens of Interest Rates and rarely with an appreciation of the Quantity of available credit being distributed by the Monopoly suppliers of that credit. 8. The system of Debt based Money creation and the System of Taxation operate in Tandem as set out in the Paper submitting evidence on tax policy to the Treasury Select committee on Tax Policy. “Legitimate government spending generally provides infrastructure, services and welfare payments to resident people and businesses. To benefit from this government spending, a person must own or rent a home or operate a business in the area. The monthly amount people pay to occupy their homes is set in the marketplace, based upon location and the value of natural, commercial and government amenities provided. Landlords charge monthly for these location amenities while home sellers charge a lump sum.” 9. Following the Financial Crisis of 2008 and the subsequent Sub Prime fall out the emphasis has been on Borrowers and their actions and motivations and not on the Lenders and the Dynamics surrounding Credit creation . This lacuna in analysis leads to a misdiagnosis of an affordability and allocation problem in The Housing market not a Supply Shortage(1). (1) https://theecologist.org/2008/aug/02/radical-carbon-tax-reform 10. The UK’s ratio of residential mortgage debt to GDP has fallen from 79% in 2009, but at 68% it is still the fourth highest in the EU (see).64 P.58 Whitepaper “Fixing Our Broken Housing Market” #Moduloft The Concept. #Cop26 Draft №2 notes Presentation and discussion #BuildBackBetter #LevellingUp moduloft-the-concept-cop26-draft-no2-notes-presentation-and-discussion-buildbackbetter-levellingup COP26 Presentation Notes. 1. Land Tax, Carbon Pricing 2. Money, Debt Credit Creation 3. Mortgage Reform Moduloft is…www.yumpu.comHousing Market Fundamentals including Debt. From Shiller’s Irrational Exuberance to The Covid19 Debt Bomb.#COP26 Moduloft Primer. housing-market-fundamentals-including-debt-from-shillers-irrational-exuberance-to-the-covid19-debt-b… Housing Market Fundamentals including Debt. From Shiller's Irrational Exuberance to The Covid19 Debt Bomb.#COP26…www.yumpu.comPrimer INDEXED UNITS OF ACCOUNT: THEORY AND ASSESSMENT OF HISTORICAL EXPERIENCE, Property Values and Indexation primer-indexed-units-of-account-theory-and-assessment-of-historical-experience-property-values-and-i… INDEXED UNITS OF ACCOUNT: THEORY AND ASSESSMENT OF HISTORICAL EXPERIENCE Money, #77: Markets and The Madness of Crowds…www.yumpu.com#COP26 Presentation Embodied Energy, Embodied Carbon Building Information Modelling (BIM) Technical Framework Sourcebook cop26-presentation-embodied-energy-embodied-carbon-building-information-modelling-bim-technical-fram… Moduloft is committed to the Entry Level budget homeownership Market. Delivering affordable Homes and the means to…www.yumpu.comThis is a work in Progress, Product Launch is expected first quarter 2021. Moduloft:The Affordable Housing Manufacturer Moduloft Finance Affordable Finance Moduloft:The Affordable Housing Manufacturer Moduloft Finance Affordable Finance “In Finance many of the greatest inventions are in terminology. A new Name for and old idea.”GK Galbraith, The Age of Uncertainty Episode 7, The Mandarin Revolution. Moduloft:The Affordable Housing Manufacturer Skin In the Game Understanding Bank Deposits, Bank Equity and Bank Own Debt Note of interest here is the idea of longer term financing even intergenerational financing after all what are government debt if not intergenerational financing through taxation more democratic to have longer term time frames this of course poses problems for the current system regarding booking large profits over shorter time horizons I argue that this is a systemic disjoint in one of the basic human rights to Shelter. This is a theme to be developed regarding Price and Value and the Trading of Mortgage Securities and distressed asset sales as opposed to the more egalitarian course of action which would be to Create some sort of Amnesty on Mortgages ( Principal residence only and even up to a Minimum price say £250k in UK figure could be arrived at by discussion. The idea that Banks have been caught out more than home owners is perverse. The Banks have created commitments for the borrowers to them and actually not given in return what the Borrowers largely believed I.E that their Mortgage is matched by and equal deposit/ saving of another bank customer. At best the banks have 1 tenth of this covered 10% and in many cases it is more like 1 fortieth 1/40 2.5% so on a mortgage of £100,000 the bank only has capital of at most £10k at risk and in all likely hood more probably £4k at risk. Therefore in distressed sales all on going mortgage payments made should be viewed accordingly and and distressed asset sale again viewed similarly. I,e a mortgage holder with 25k negative equity on a mortgage of 100k still has an asset worth at least 7.5 x the capital reserve the bank allocated against making that loan. I.E the borrower remains in debt for 100k a new debt of 75k is created and and the bank gets all its basic capital back has had the interest in the meantime and will still milk the original borrower through the Bankruptcy process for a further 2 years representing further pure profit. Other commitment bank have created beyond the reserve ratios based on trading these very profitable rights to receive mortgage payments cause the banks to be insolvent but compound the extent to which the original deceit is leveraged to the cost of the Mortgage Payer who is also the future tax payer for the government debt taken on the Save the banks from their excesses with their derivatives based upon the imaginary debt money they are licensed to create in the first place. affordable-homes-a-framework-of-understanding Moduloft Finance Affordable Finance A Framework of Understanding Moduloft Finance Affordable Finance A Framework of…www.yumpu.comOver the past 25 years a Gap has opened in the market between what is affordable and what is built to address the shortage of Affordable Residential property. The Definition of help to buy in london is a range up to 600k. Development has gone high rise and targeted at the Buy to rent markets often specifically for investors in the Far East. Or Buy to Let landlords in the UK. S 106 provision of Affordable Social Housing has not addressed the dynamics of a housing market where the children of families can remain within communities. This problem has been known about with attempts to address it in Rural areas where Holiday home and second home buyers price out Villagers. In Urban Centres Commutes have got longer and more expensive. This recent “Action on Empty homes” report nails the problem in my opinion. Action on Empty Homes campaigns for more empty homes to be brought into use for people in housing need. Our aims are to: ■ Raise awareness of the waste of long-term empty homes. ■ Campaign for changes to national policy. ■ Support loca o: ■ Raise awareness of the waste of long-term empty homes. ■ Campaign for changes to national policy. ■ Support local communities in transforming their neighbourhoods. ■ Provide advice for those seeking to bring empty homes back into use. ■ Research and develop ideas for bringing long-term empty homes back into use for those in housing need. If people make places and communities ( I think that they do), then the provision of the basic spaces for communities to “Make their own” over time is the essence of our new concept. Our Budget Live Work Thrive “Be the event” comprehensive development approach of Placemaking Basics by for and of the people and their community. In Urban contexts and in Suburban or rural contexts the same basic principles apply. Some 25,000 London homes are empty, says government data It is certainly a failure of Planning and Policy generally for such a high number of sold off-plan and new build…www.linkedin.comHelp to Buy and other Schemes. “Are we Looking for and have we been looking for solutions? In this response, it is assumed The Committee is seeking to further the public interest, even where this may conflict with the private interests which usually dominate the analysis and debate. This will pose a major challenge to those who have learned their analysis exclusively through channels devoted to promoting private interests, and must unlearn erroneous but pervasive assumptions and “unlearn” erroneous but pervasive assumptions and principles.” The principles of tax policy 1. The Systemic Fiscal Reform Group was formed in Cambridge in 2008 by a small group of individuals led by Dr. Adrian…publications.parliament.ukthe distinction between Bank, Building society and Other lending in all the stats is key, followed up by the Distinction between, Mortgage for New or Existing homes as 1st Mortgages,Mortgages for Remortgages and finally mortgages for Letting investments. The other very important distinction is Mortgage Funds secured in the Money Markets and Mortgages originated as Bank credit. Northern Rock of course famously became a casualty of the former and The Market itself is in my opinion enslaved to the latter. One further Stratification category would be the Element of Value attributable to Site or Land Value. All of my recent researches point to Land Value Tax, and the Late Dr Adrian Wrigley s work. This paragraph is sandwiched between Two Quotes from Adrian’s work. Evidence of a real housing shortage is absent. A real shortage would show up as overcrowding nationwide. People would be walking the streets in the hope of finding a room. Room prices would be high, and there would be no empty houses.We have a crisis of affordability and allocation. People are borrowing eight times their income to get on the housing ladder yet there are 700,000 derelict houses, 500,000 second homes, and hundreds of thousands of pensioners homes with at ‘s Irrational least three bedrooms spare. The overheated Spanish housing market shows that rapid building programmes do not cure price bubbles. A radical carbon tax reform The Conservatives are considering an array of tax tweaks this week based on studies by the Centre for Social Justice…theecologist.orgFor an Affordable Product to work the appropriate supply of newly created credit needs to be accessible for new first time buyers. It is the successive failure to solve or even address this piece of the puzzle that has led to the Market as we see it today. By some estimations ( Werner et al) the cause of the Gyrations we call the property cycle, is the availability of Credit, Bankers and Policy makers/regulators are to blame or thank depending on which side your bread is buttered. At this point separating the Flows of Credit into the Housing Market is a non trivial task As one has to Factor in The Production Side of the equation; House builders/Developers etc. with financing of Land Acquisition, Planning and Construction. Understanding these flows and incorporating them into a model to see how the Split between; Newly created Credit and Institutional Equity Funding expressed as Developer Payments, Insurance Company Liability cover , and Other risk Capital from the Players in the Model Transaction create a complex dynamic system where much of the Devil is found in the detail. Simple indices, median prices and Stylized Facts all contribute to the confusion and ultimately have succeeded in throwing the Baby out with the bathwater. I think if workable solutions have or can be developed then any workable solutions should all satisfy two provisos. 1. Higher LTV lending and also 2. Lending at Higher Joint income Multiples Both of these are a necessary combination if First Time buyers are to see sufficient credit allocation. The Macro Prudential framework as it currently exists , will I think frustrate even prudent and attractive Mortgage products for First Time buyers. My Latest Blog touches on the Problem. Per Kurowski who I quote in the Blog is an ex director of the World Bank and If the Good Ship Sonia is to set sail, we could do a lot worse than pay heed to Pers message which he has oft repeated in the letters section of the FT. “We must..“unlearn” erroneous but pervasive assumptions and With lower bank capital requirements for residential mortgages than for loans to the entrepreneurs or SMEs, those who can create the jobs needed in order to service utilities and mortgages, you will not have a functional economy, and houses have morphed from being affordable homes into being the main risky-investment of way too many families.” Affordable Homes, Are we Looking for and have we been looking for solutions? If So Look Here… Are we Looking for and have we been looking for solutions? 13. In this response, it is assumed The Committee is seeking…notthegrubstreetjournal.com A New Land Contract This is a written version of a talk given for Civic Square’s ‘Department of Dreams’ event on Friday 19th June, 2020.alastairparvin.medium.comThe Stylized Facts of the Macro Prudential Literature , succeeds in doing what Stylized Facts do. That is The decoupling of The Entry levels of the Market from Fundamentals has gone undiagnosed. I am not convinced that this is not condoned by implicit policy, where being seen to be trying to do something is enough, Actually doing something is not the standard of success, a triumph of Stylized Facts over Substance, Perhaps? "A ship in harbor is safe, but that is not what ships are for", Setting Sail on the good ship… MARCH 25, 2020 Do we have a banking system with banks as they are supposed to be? Sir, I refer to your "Non-bank…notthegrubstreetjournal.com“unlearn” erroneous but pervasive assumptions and A ship in harbor is safe, but that is not what ships are for ,. @PerKurowski Tackling the UK housing crisis: is supply the answer? 5. “The collapse in home ownership was mainly due to withdrawal of mortgage finance from FTBs, which suggests policymakers face a trade-off. This paper has argued that, while high house prices affect home ownership, the dominant driver of its recent collapse was a sudden stop on mortgage lending to FTBs. And in keeping with that explanation, the recent return to a more normal pace of FTB lending has seen the home ownership rate stabilise and perhaps begin to recover.” Ian Mulheirn August 2019 The new focus of RLD “placemaking” is as described in the recent article in Property Week. Home@ix (pronounced "Home-at-ics".)Land Requirements Market Commentary and shooting the breeze.www.realrld.comMore Specifically. Over the past 25 years a Gap has opened in the market between what is affordable and what is built to address the shortage of Affordable Residential property. The Definition of help to buy in london is a range up to 600k. Development has gone high rise and targeted at the Buy to rent markets often specifically for investors in the Far East. Or Buy to Let landlords in the UK. S 106 provision of Affordable Social Housing has not addressed the dynamics of a housing market where the children of families can remain within communities. This problem has been known about with attempts to address it in Rural areas where Holiday home and second home buyers price out Villagers. In Urban Centres Commutes have got longer and more expensive. This recent “Action on Empty homes” report nails the problem in my opinion.