The UK’s biggest tech bubble is over, and it will leave millions of homeowners and businesses vulnerable to the consequences of irresponsible investment.
As the UK government prepares to introduce a new regulatory framework, the Home Office has made a major policy change to the country’s housing law, which will allow companies to dispose of “resale building material” (RBM) in their buildings.
This is the first time that the UK has had a blanket ban on RBM, but the change will mean that many properties, including some small homes and studios, will soon be considered “high-risk” property.
“We are making the case that we are not a safe haven for property speculation, and the Government will be making the decision to make sure that we protect our citizens from this type of speculation,” said Nick Dearden, director of policy at Shelter, a non-profit housing organisation.
“The Government will also be making sure that the Home Secretary’s review of the Government’s housing strategy, which we have been campaigning for, is completed and is ready to go before Parliament.”
This will provide the UK with a more effective housing strategy that protects the vulnerable while creating jobs and building the economy.
“The Government is proposing to give local authorities up to two years to implement their own regulations to prevent “resellers” from disposing of RBM.
The Government has made clear that the move is aimed at protecting “resort properties”, which are the most common type of home that can be used for short-term rentals.
The Home Office is proposing that the maximum maximum time that landlords can put RBM in their properties will be 10 years, and that they can only sell the property to an owner of the same gender, marital status or legal relationship to “reserve” it for another tenant.
The move comes after a year of debate over the government’s housing policy, which has been criticized by politicians across the political spectrum.
The government has argued that the proposed policy is needed to protect “high risk” properties, where people have been buying properties for years but are now selling them for profit.
The Conservatives have been accused of being too lenient in their handling of the problem.”
A government that is too soft on property speculation will make it easier for people to make their own decisions, but will be unable to prevent people from being able to buy property at the highest levels of value,” Conservative MP and Housing Secretary Andy Burnham said last week.”
I’m pleased that we’ve come up with some good policies and a new approach to housing, but it’s still very early days and the government has to take the lead in implementing them.
“But critics of the government have also slammed the move as “unnecessary”, claiming that the new rules do little to prevent RBM from being sold to people who are not the real owners of the properties.”
These new rules allow speculators to take advantage of the market to make huge profits, with no safeguards or controls for the property owners,” said Kate Green, an expert in property law at the University of Essex.”
There is absolutely no reason for speculators in the UK to be able to resell homes for as much as they like.
“A Home Office spokesperson told The Local that the government is committed to protecting the housing sector.”
The Government continues to review the impact of the Residential Tenancies Act and is committed that we continue to strengthen the law to protect those most vulnerable to unscrupulous behaviour.”