Tory’s Win Big… Will Housebuilding Take Off?

Video Transcription:

Hey guys. So Tory majority, and I mean, forget Tory majority. We have a government that has a majority that can actually do things and have a large enough majority to actually make decisions, which we haven't had for three and a half years. So that's fantastic news.

So what's that going to mean for us in terms of, if we look at the manifesto on house building, what do we think's going to happen there? So if we look at the manifesto, first of all, really light on detail. Not a lot happening there, not a lot of anything, but basically what they've said is 1 million homes in the next parliament. Now parliament's about five years, okay. Give or take a couple of months or whatever. But the bottom line, five years, a million homes, that's 200,000 a year. That's less than we're building now. So it's not a very inspirational thing considering we've got a housing crisis and we've had one, well, since I moved to the UK in 2002. Kate Barker released the report and we'd never really met those targets at all.

In fact, actually last year was a good year for house building. I'm not sure it's going to be very good this year or as good this year, but 200,000 homes, that's not really that inspirational. But by the same token, that's one aspect. Then they had another one which was 300,000 homes by mid 2020s. Now, so what does that mean? So by 2025. So we've got effectively five years, they'll be building 300,000 homes. Now that's all it said. It didn't say, was it 300,000 house and homes a year, which it didn't actually say that. It said by then we'll be at 300,000 so that means we could be at 50, 100, 100, 200, whatever, in the next four years and then 300 that, in the final year. Who knows? We'll see what happens with that.

Now the problem I think we're going to have is that really given what's gone on, I think, and this is a bit of a prediction, that actually we're going to see housing almost take a backstep. Brexit is going to be the focus of the next few months, to get Brexit done. And then we'll see maybe in the Budget in March and things coming out about housing. But I'm not really sure. They may give it lip service and all that sort of stuff, but I'm not sure anything major is going to change because I think it's going to be all, Boris has already said that Cabinet's going to work 24/7 or 24 hours. I'm not sure he's actually going to do that and I don't think he will anyway.

But regardless, the targets have set, which two targets that don't actually match up, in the one manifesto. It was very light on detail. So who knows? My thing is, as a Tory party, they've generally haven't really needed to solve the housing crisis. Why? Because their constituency and their voters have always wanted house prices to increase.

But this is the thing. If you look at who voted them for this time, the red wall that was the north, has turned into a blue wall. And the amazing thing is, are they going to and he's already said he's going to take a more middle ground. So he's going to be looking after the traditional Tory voters, but also the more Labor or the Labor voters, the red sort of voters that were there. So it's going to be interesting to see how he adjust the positions of the two and works that out. I think there's a lot to be done and I think there's a lot they can do. I mean, right-to-buy, help to buy, strengthen those systems. Yes. Things like renters. I think we're seeing the market change. The property industry has changed towards a more rental focus with things like PRS where major pension funds and developers are building property purely for rent. There's no sale. Wembley's a classic example of this, you've got a number of different schemes now that are purely based on rentals.

So we've got these sort of things happening and it's an amazing thing to look at and it's going to be quite an interesting five years. I think for me, the great thing is, is as a property investor we can kick back now and we can sort of just relax a little bit because it's been quite tense not having a majority, people that vilifying landlords, I think a lot of the regulation has been in, there's not too much more we can regulate, you know? So I think that will ease off. I think we're going to start to see a bit more results and we'll actually get a bit more return on our money, as long as you have a professional approach to your property portfolio. I think that's one of the keys here. You've got to have a professional approach. If you don't have a professional approach, then that's where you're going to run into problems and fall foul of regulations, things like that.

But look guys, yeah, manifesto, light on detail, but majority government, so now they can get things through so they can make decisions and put them in place. And I think for the most part, as an investor, that's good for us, and the decisions they will make and the direction they'll head will be good for us, if we're treating the business as a professional business.

All right guys, have a great day, live with passion, and remember, subscribe and comment down below. Happy to answer questions and look forward to speaking with you real soon. Bye. See ya.

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About the author

brettalegrewood

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Ezytrac. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids. Brett holds both the Level 3 Property Mark Qualifications for Property Sales and Property Lettings and Management.


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