Gateshead Council has a bizarre idea of affordable housing. The average wage in Tyneside is approximately £17,500 so, assuming a 100% mortgage, affordable housing is about £54,000 if you use the normal three and half times wages formula.
Swedish company BoKlok produces "flat pack" wooden homes that the locals now call the "Ikea houses". These were the new experimental eco homes that would revolutionise housing starting at just £99,000 for a flat.
The offer to those on average wages on Tyneside is that you can buy these properties on a 50% ownership basis.
Now that the banks are cutting down on risky morgages and won't even lend to themselves most of those on low wages have to cough-up 30% deposits to get a mortgage.
Not surprisingly only 12 out of 36 houses have been sold. Meanwhile Saltwell and Bensham, always a popular area for first time buyers, faces the continuing threat of demolition to properties that cost between £60,000 to £80,000. These will be replaced by new houses costing between £170,000 and £200,000 - more than 10 times average salaries.
If you wanted a policy that guaranteed long term renting for the working poor then Gateshead Council have that policy. What it doesn't do is build communities or fullfil the aspirations of hard working Tyneside families who find housing is unaffordable - even flat pack housing.
Saturday, May 31, 2008
Sunday, May 11, 2008
Election Analysis
No great change was expected in the Saltwell and Bensham area and that's exactly what happened.
Of course with solid Labour majorities across most of Gateshead the issue of "demolition" was not going to get pulses racing. Most people are relieved that the original council map showing 1,200 homes for demolition now seems to have reduced to just one street. That one street was already half owned by the council and seems to be targetted because a council director got jeered at while jogging some 6 years ago.
On a wider perspective MPs like Nick Brown in Newcastle East has become increasingly vunerable to the Lib-Dems. Demolition has done nothing to help the Labour vote there and everything to help the Lib-Dems gain his seat.
Lancashire, home of many a pathfinder project, is also home to a number of marginal seats. Sitting Labour MPs there saw the Conservatives creep back into the north. Demolishing homes of Labour voters is about as useful as drilling a hole in your head.
Locally demolition hasn't made the radar for the Lib-Dems. This is really because in Newcastle it has been a tremendously successful policy for them. They take money from a Labour Government, demolish chunks of solid Labour housing estates, replace them with homes that only walthier middle class people can afford and then add more Lib-Dem councillors. Although Gateshead has a solid Labour majority today the Lib-Dems must be quietly confident that successful demolition programmes in Gateshead will provide a platform to win more Gateshead seats in future.
There is a saying in politics that turkeys dont vote for Christmas. Whoever coined the phrase obviously didn't see how enthusiastically the Labour Party in Newcastle supported mass demolition a few years ago and how quickly Gateshead Labour Party has joined in.
Of course with solid Labour majorities across most of Gateshead the issue of "demolition" was not going to get pulses racing. Most people are relieved that the original council map showing 1,200 homes for demolition now seems to have reduced to just one street. That one street was already half owned by the council and seems to be targetted because a council director got jeered at while jogging some 6 years ago.
On a wider perspective MPs like Nick Brown in Newcastle East has become increasingly vunerable to the Lib-Dems. Demolition has done nothing to help the Labour vote there and everything to help the Lib-Dems gain his seat.
Lancashire, home of many a pathfinder project, is also home to a number of marginal seats. Sitting Labour MPs there saw the Conservatives creep back into the north. Demolishing homes of Labour voters is about as useful as drilling a hole in your head.
Locally demolition hasn't made the radar for the Lib-Dems. This is really because in Newcastle it has been a tremendously successful policy for them. They take money from a Labour Government, demolish chunks of solid Labour housing estates, replace them with homes that only walthier middle class people can afford and then add more Lib-Dem councillors. Although Gateshead has a solid Labour majority today the Lib-Dems must be quietly confident that successful demolition programmes in Gateshead will provide a platform to win more Gateshead seats in future.
There is a saying in politics that turkeys dont vote for Christmas. Whoever coined the phrase obviously didn't see how enthusiastically the Labour Party in Newcastle supported mass demolition a few years ago and how quickly Gateshead Labour Party has joined in.
Monday, May 05, 2008
Private Sector Funds In Meltdown
Residents of Saltwell and Bensham were promised £750 million of investment from the private sector following the demolition of 440 homes in the area. This money would come from Gateshead Council's private sector partners.
The talk of "private sector partners" is naive at best showing a lack of understanding about the private sector. The private sector are not risk takers but conservative investors seeking to maximise profit. When real risk of expense arrives they run for cover.
Right now Inside Housing is just one of the places reporting the retreat of private sector investment. Gordon Brown has breakfast with bankers who dont even trust each other to lend cash and over £50 billion of public funds is now committed to buy up the dodgy mortgages bought by the banking industry.
One of Britains largest builders, Persimmon, is persponing key projects because of lack of buyers. Sales have dropped 24% and Citizens Advice Bureaux are estimating that repossessions will reach 53,000 this year. So we will have an increase in need to rent just at a time when Gateshead Council are demolishing homes for rent.
So where does this leave the £750 million of investment. At best it leaves private sector investment as a distant hope and at worst it means that demolition is proven as the wrong policy in the wrong place at the wrong time.
Links
Inside Housing
The Guardian
The talk of "private sector partners" is naive at best showing a lack of understanding about the private sector. The private sector are not risk takers but conservative investors seeking to maximise profit. When real risk of expense arrives they run for cover.
Right now Inside Housing is just one of the places reporting the retreat of private sector investment. Gordon Brown has breakfast with bankers who dont even trust each other to lend cash and over £50 billion of public funds is now committed to buy up the dodgy mortgages bought by the banking industry.
One of Britains largest builders, Persimmon, is persponing key projects because of lack of buyers. Sales have dropped 24% and Citizens Advice Bureaux are estimating that repossessions will reach 53,000 this year. So we will have an increase in need to rent just at a time when Gateshead Council are demolishing homes for rent.
So where does this leave the £750 million of investment. At best it leaves private sector investment as a distant hope and at worst it means that demolition is proven as the wrong policy in the wrong place at the wrong time.
Links
Inside Housing
The Guardian
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