wemakeyousoundb
hopefully not gimboid
well, best of luck to any first time buyer for the future.
Are you really saying that 'market circumstances' are the reason it will be impossible for sales to achieve a fair open market price? Open market price is the price which can be achieved by an open sale under the prevailing market circumstances.
If what you are saying is that it is not a good time to sell I don't entirely agree with your assessment. Average property price in Lambeth rose 10.8% in 12 months to March 11. At the same point average price was only about 5% below the crazy peaks (about 330 vs 350). Of the past 6 months only one has had negative growth. As for whether refurbished mansion blocks are the kind of thing that are currently selling in Brixton, 2 bed mansion flats in Rosslyn and Hereford (the closest 'historic' comparison that I am aware of) have been exchanging hands for 270-285K (despite hardly any of them meeting the current minimum size standards for new build 2 bed flats).
There is a lot of money out there for property funds at the moment. Boosted by international money because sterling is so cheap and investors want to speculate on a rise in interests rate driving the value of the pound upwards during the term of their investment - potentially adding significant extra return.
Yes, prices could potentially rise but we have another potential economic crisis on our hands which could just as easily cause prices to drop considerably again over the next 2 years. If the council needs the cash now then I don't think holding and speculating is advisable.
well, best of luck to any first time buyer for the future.
I agree that theoretically it could have been liquidated, but if we follow the balance-sheet logic, Lambeth would have a duty to secure the maximum return on liquidation, something they're unlikely to be able to do even now.
Not quite sure what you mean by this [secure the maximum return on liquidation]. Lambeth has a duty to achieve a fair open market value. Why do you think they will not be able to do that now?
Market circumstances.
Are you really saying that 'market circumstances' are the reason it will be impossible for sales to achieve a fair open market price? Open market price is the price which can be achieved by an open sale under the prevailing market circumstances.
I haven't said anything about "open market price", Rushy. You did.
I did ask whether that was what you meant, VP.
I asked it because you you referred to Lambeth's duty to achieve maximum return on liquidation - and I did not understand what you were referring to - but they do have a duty to achieve a fair open market price.
I'm talking about a decent return that isn't pennies in the pound of the actual value.
They only have a duty to achieve fair open market value.
It does seem that you are deflecting slightly because I questioned your rather specific analysis of the sale of specific types of property in the current market.As for the council needing the cash, do you think they should liquidate their land-bank too? perhaps have a "spring-clean" of any saleable assets?
But to answer your question: I don't know the extent or nature of Lambeth's landbank that you refer to. If they are holding landbank assets which they will be unable to use in the foreseeable future, and the decision is between selling those and cutting more essential services then I would probably agree to stage by stage sale of carefully selected examples of those assets. Landbanking (whether public or private) is contributing to the lack of accommodation in the city. When Lambeth sells properties (such as Rosslyn and Hereford mansions) the contracts include an obligation on the buyer to commence and complete refurbishment within a certain time frame or face penalties, ensuring they are not banked and are brought back into circulation.
Yes - it would be ideal if they had the funds to refurbish the properties now or in the near future. But AFAIK, they don't.
When tenement blocks were going up in Brixton around late 19th -early 20th century, Clifton Mansions, I think was probably low-end, low-income, and not a patch on housing stock in Rushcroft Road. The courtyard is nice, but many of the flats are u-shaped around a stairwell with no corridor, and therefore, I think, don't obey building regs. The rooms are smallish and the fabric of the building is in a state. Because there was an opportunity to buy as a co-op I thought about how they might be converted and came to the conclusion that a lot of expensive hacking-about would be necessary. I would knock them down and start again.
As for the council needing the cash, do you think they should liquidate their land-bank too? perhaps have a "spring-clean" of any saleable assets?
and something to bear in mind: you can sell properties with the squatters included at auctionhttp://www.thisislondon.co.uk/stand...year-as-they-auction-homes-off-too-cheaply.do
To follow up my previous post here is Evening Standard article on the results of auctioning off properties. Its a bit old from 2009. Its been an issue for a while.
Lambeth council came under fire in February after a two-bedroom flat was sold at auction for about £30,000 less than similar properties.
It was bought by a consortium of developers for £128,000 with the intention of selling it on at a profit. The flat, in Cricklade Avenue, Streatham Hill, needed little more than a new kitchen and bathroom, with refurbishment costs estimated in the region of £10,000.
Six months later it has gone on the market with a local estate agent for £215,000, potentially making the seller a profit of about £80,000.
It is now under offer at the asking price. Jack Frankel, part of the consortium which regularly buys at auctions, said: “I realised pretty quickly that this was a bargain and I'm very pleased with the way this has gone.
just checked auction site and Lambeth are still using auctions to sell housing stock.
Yes I noticed on the auction site that it said that a property was squatted.
Which means that Clifton could have been auctioned with squatters in situ.
So that the argument that they were holding up sale does not follow.
http://www.thisislondon.co.uk/stand...year-as-they-auction-homes-off-too-cheaply.do
To follow up my previous post here is Evening Standard article on the results of auctioning off properties. Its a bit old from 2009. Its been an issue for a while.
Lambeth council came under fire in February after a two-bedroom flat was sold at auction for about £30,000 less than similar properties.
It was bought by a consortium of developers for £128,000 with the intention of selling it on at a profit. The flat, in Cricklade Avenue, Streatham Hill, needed little more than a new kitchen and bathroom, with refurbishment costs estimated in the region of £10,000.
Six months later it has gone on the market with a local estate agent for £215,000, potentially making the seller a profit of about £80,000.
It is now under offer at the asking price. Jack Frankel, part of the consortium which regularly buys at auctions, said: “I realised pretty quickly that this was a bargain and I'm very pleased with the way this has gone.
just checked auction site and Lambeth are still using auctions to sell housing stock.
From the data the prices at auction dropped from 2008 onwards dramatically and haven't gone back up to non auction price.
So still a good buy for the Buy to Let portfolio builders and small developers. In London they cant lose.
The ongoing problem for Councils is that they cant build anymore or rehab there existing street stock. At the end of the last Labour government there was a move to allow Councils to start building Council Housing again. HAs have over the years have had to become more like private developers when doing new developments. Leading them into conflict with tenants as on the Guiness Trust estate.
The underlying problem is the commodification of housing over the last couple of decades. Particularly that new phenomena "Buy to Let". Its surprisng the variety of people I know who got into it. The "market" has failed to fulfil a social need like housing.
See here for background:
http://www.redpepper.org.uk/revenge-of-the-repossessed/
We should be under no illusions about the coalition’s purpose – it is the return of what Ralph Miliband called ‘class war Conservatism’, this time with a Liberal face. But to understand fully what is going on here requires an historical perspective..
First, the UK housing crisis did not originate in the boardroom of Lehman Brothers. It is, as Engels explained 140 years ago, an endemic feature of capitalism everywhere that it continually condemns significant numbers of people to housing misery, and periodically blows up into a wider crisis.
It was the catastrophic failure of private landlordism during the 19th and early 20th centuries that gradually impelled state intervention in the form of public housing. During the post-war era, a mixed economy of public and private house building helped to constrain the boom-bust cycle and replace the dominance of the private landlord with a mix of home ownership and council housing. The long-term withdrawal of local authorities from housebuilding has coincided with a highly volatile period of housing market instability, with no fewer than four boom-bust cycles since the early 1970s.
Second, the roots of the present housing crisis can be traced to the over-accumulation crisis of capital of the 1970s, which arguably gave birth to the evil twins of financialisation and neoliberalism. Expanding home ownership was vital for finding new sources of accumulation for finance capital. This is why neoliberalism made the privatisation of public housing in Britain its flagship policy, shutting down affordable and secure alternatives to the market and co-opting key sections of the working class into what Thatcher called ‘popular capitalism’.
But the alternative models and experiments being proposed do not point towards a system that is credible or desirable enough for a significant number of people to think it is worthy of the quite enormous change that would be required.
other models and proposals to do with housing? It is in the interests of the Brixton community to try and negotiate a new settlement with the council about the future of the squats.
not sure this got posted before: national eviction team report...
During the mid nineties the UK witnessed an explosion of Eco-minded people coming together in an organised and structured way, with one common purpose in mind. That purpose was, and still is, to disrupt progress, and when the talking was over, their one-line of thought was to take direct action.
We initially experienced this direct action first hand. In 1995 we were called in by Mining Company Celtic Energy, on two proposed opencast sites, where the Eco-Warriers had established their encampments by erecting their tree-top houses, and barricaded themselves into farm buildings. This for the National Eviction Team was where it all started, on some very cold wet days in the Welsh valleys.
Since that time, the Company has been appointed by Central Government, Local Government, Scottish Parliament, Welsh Assembly Government, Manchester Airport, National Grid, Scottish Coal, UK Coal, Lambeth Borough Council, to name but a few in order to effect the safe removal of Protestors and restore what was wrongfully taken away.
These days the Company and its Directors enjoy an enviable reputation of having removed more Environmental Protestors from their Tree-Top houses and labyrinth of tunnels, than any other Company claiming to specialise in this work. It is a statement of fact, not some clever marketing material, that since 1995 we have safely removed over 1,000 Protestors from occupied land without injury to them or our teams. This is a reputation that we are proud of.
As the movement continues into the second decade of the 21st century, we have found that the Protestors are far more innovative and organised than they have ever been; from their Tree-Top lock-ons, to being suspended and encrusted in a surface water drainage poly-pipe amongst pine trees, to being 30 feet underground crawling through worm tunnels. Our team have pretty much seen it all, and have dealt successfully with everything that they have thrown at us since 1995.
You say that it is in the interests of the Brixton Community to try to negotiate a settlement with the council but do the majority of the community agree with this??
not sure this got posted before: national eviction team report...
This discussion has become pretty detached from the original subject. At the end of the day the previous govt did not instigate a new drive of council house building in 13 years and, given they agreed that significant cuts were required, it is unlikely their plans would have ever come about. I am sure that they knew they couldn't afford it when they proposed it- they didn't expect to get another term.
It does not make capitalism right. But the alternative models and experiments being proposed do not point towards a system that is credible or desirable enough for a significant number of people to think it is worthy of the quite enormous change that would be required.
Building for example Council Houses again does not require enormous change. It would also provide employment for people and help the construction industry.
Increasing rights for private/ social tenants and bringing in rent controls does not require radical change.
The only groups in society who might resist these changes are developers and Buy to Let portfolio owners.
Do you think people who have struggled on median salaries of about £400/wk after tax to pay for their own house (rent or mortgage) and see their taxes funding a system that cannot turf out or increase rent for a tenant as wealthy as Bob Crowe
...
Not this old chestnut...
Really? You don't think that a large proportion of the population exists who feel that welfare state should be there as a security blanket rather than something to become dependent on or complacent about?
Perhaps rather than demanding more rights we should be talking about necessity, more balanced rights and better use of stock.
Really? You don't think that a large proportion of the population exists who feel that welfare state should be there as a security blanket rather than something to become dependent on or complacent about? Westminster council estimates that 2,200 of their tenants in taxpayer subsidised properties are on incomes of over £50,000 - and about £200 are on incomes of over £100,000 - and they are not allowed to put the rent up, let alone turf them out to make way for someone in actual need. Do you think people who have struggled on median salaries of about £400/wk after tax to pay for their own house (rent or mortgage) and see their taxes funding a system that cannot turf out or increase rent for a tenant as wealthy as Bob Crowe or Lee Jasper actually think that is fair. Are you really sure that it is so cut and dry that only developers and 'buy-to-let'ers could possibly resist a push for more rights?
Perhaps rather than demanding more rights we should be talking about necessity, more balanced rights and better use of stock.
Not this old chestnut...
Yes it is that old chestnut and just what the Government is saying.