Regional house prices diverge since 2007, London up 40% but Wales etc down 41%

Given the recent reports on unsustainable property prices, and for example the housing pressures for key workers in London, we should consider separating the price of the building from the price of the land.

The idea here is that the owner-occupier or social landlord only pays for the building. They would rent the land, like a ground rent, but without having a long lease to sell on as an asset along with the building.

It is possible to build a modern car in a factory for under £2,000 and houses are actually less complex than cars, although a bit more bulky. Using offsite manufacturing, road delivery of house modules, and craning onto foundations with service connections, at scale a house could be ready to use for £5,000 to £10,000.

By removing the value of the years ahead of the lease, the price of a house could become less of an object for speculation. It would become a consumption good, not an investment asset. Publicly owned land could be given a ground rent waiver for key worker occupiers.

Link:
http://www.theguardian.com/society/2013/dec/15/great-housing-divide-disastrous-consequences

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