Asset Distribution.
I’ve been reading Gary Stevenson’s book The Trading Game this week. It’s just out and a jolly good story. I’m nearly finished, and, along with his various YouTube videos (see last week’s links), it is a thought-provoking body of work. The basic premise is that the rich are asset-stripping governments and the regular working classes, making both poorer. It’s obvious, but there isn’t less money around. It’s a question of distribution.
The asset that most of us think about is housing, and this has got me thinking about letting agents. In 1997, I left university and wanted to rent a flat in Southsea. Estate Agents sold houses. As far as I recall, their windows had no rental options, and with a lack of options, we ended up at Leaders on Osborne Road. I thought I’d check my memory. Are there more rental properties now? So, after being in a rabbit hole for two hours, here are a few Friday morning statements around property distribution and inequality:
• We often hear that the top 1% own more than everyone else or something like that. In the UK, 10% holds around half of all the wealth.
• It’s often reported that Blackrock, Vanguard and State Street own the world. Seems it’s sort of true.
• In 2000, there were 2 million rental properties in the UK. Now, there are 4.6 million. This suggests that my memory is correct; there are more properties to rent and more agents to market them.
• In that same period, 2.9 million new properties were built. But…
• …the UK population has grown from 59 million to 68 million over that same period.
• And there were 24.4 million UK households in 2000 and 28.1 million in 2022.
• Buy-to-let mortgages started in 1996 following the Housing Act 1988, which created the assured short-hold tenancy.
• Build to Rent came into being in 2012, and an early example was the Olympic Village, which was turned into rental flats. Vantage Tower in Woolston is entirely rental. A decent-sized one-bed is £1490 per month, and you pay extra for your dog.
• The Chancellor bought seven flats in Southampton. Seven? There is a bulk buy (MDR) avoidance of second home stamp duty at six or more, which he has just announced he is stopping in June.
• He also announced a plan to drop National Insurance for employees. But it’ll take at least ten years…
• This is a bit of a Hunt-fest, but he has said he’ll voluntarily pay more tax. Why? Who’d do that? Just pay what’s required by the law. If you’re worried about being seen as a tax dodger, then maybe you are. Remember when Starbucks said they’d pay more tax?
• The tax burden is at nearly 40% of GDP. The highest since the 1980s. If the government wasn’t getting poorer, as Stevenson suggested, shouldn’t increased taxes mean better public services? So, cutting taxes does what? Increases borrowing, and who does the Government borrow from? More wealth transfer.
• The average first-time buyer age is now 34, compared to around 27 in 2000.
• In 2014, four in ten adults had no property wealth, but one in ten had wealth in multiple properties.
• I know lots of people who own more than one home. I know quite a few who own several properties. But I live in a rarified world. Of the 28.1 million households, 2.1 million report owning at least one additional property. A 54% increase since 2010.
• Homeownership is falling but is at about 63%.
• More people own their homes outright than have a mortgage. It’s surprising, but then fewer people are getting mortgages. More people rent than own their homes outright. Just over half of rentals are private renters.
• The pandemic cost the UK taxpayer at least £310 billion (Stevenson says it’s £700 billion and growing). Where did all that go? Asset prices rose.
Friday morning allows. But we have a problem with the distribution of property and the inequality it presents. We all know that anyway. What we do about it is another matter. It requires more than a change in government, it requires people to make decisions as a collective. Spoken like the true Leftie I’m not, but I am a father and teacher, and younger folk are going to find it harder and harder to buy a home, especially those without hereditary privilege.
Feel free to let me know if you have any comments or suggestions. You will always find me at carl@carlarchitect.co.uk.
All the best
A date for your diary – update
Last month we suggested a date for your diary which has since changed – apologies. Our Southsea Property Drop-in event is now on Tuesday 16 April and is even bigger.
We’ll be teaming up with:
– Kevin Fogget and Alana Shihadeh of Now Build It, a Portsmouth-based building company.
– Neil Maxwell of Fry & Kent Estate Agency.
– Jay Pyper of DSF Interiors, a bespoke Design Supply & Fitting company in Southsea
– Emma Kelsall, a Southsea-based interior designer.
– Helen Pyper of boutique tile shop, Tiled, where the event is being held (Marmion Road, Southsea PO5 2AT)
Join us for a glass of wine – kindly supplied by Wines by the Sea and Crushed & Cured – and an informal chat to discuss your property plans, whether you’re extending, renovating, or styling your home, installing a new kitchen or bathroom or moving house.
Carl and Emma will be talking about the benefits of using an architect and the value of using an interior designer.
Pop in anytime but you must reserve a spot: propertydrop-in.eventbrite.com
Builder of the month – Turnquay Construction Ltd
Meet Andy and Mark – the yin and yang of Portsmouth-based building company, Turnquay Construction Ltd. Why yin and yang? “We complement each other really well,” Andy says. “It wasn’t always the case; we annoyed the hell out of each other in the first six months working together until we realised, we were both checking the other one’s work and there was no need. Now we have this great balance; probably because our skills overlap so we each play to our strengths, and we have got each other’s backs.”
Mark continues with a smile: “I’m the brain and Andy’s the brawn,” but in fact Mark’s the one with the more academic background and a degree in quantity surveying and is often found doing the paperwork, but he has also done his time laying floors. Andy started off as an apprentice carpenter before becoming an assistant site manager and working his way up. He still loves to get stuck in and get his hands dirty as often as he can.
So, what are Turnquay all about? They describe themselves as ‘the perfect middle ground’ between a large commercial contractor and a small general builder because they have the professional approach of one and the hands-on skills of the other. Plus, they can tackle both kinds of jobs and everything in between.
They recently won a tender to build an extension to a cricket pavilion as part of a government contract, partly due to their reputation for planning ahead, dotting the I’s and crossing the Ts. And this is something they do for every client, Andy says. “We won’t ask the client for a decision on something by next week, we’ll provide a schedule that sets out in advance when we need a decision about something, like choosing a roof light or deciding what a style of doors they want.”
Although Turnquay is a relatively young company with just three years under their belt, the pair have known each other for almost a decade and worked together years ago at the same construction company. They were happily doing their own thing until an architect they knew made contact and asked if they could recommend a good company to handle a particular-sized job. Realising that between them they had the optimum skills and were the perfect fit and just days later Turnquay was born.
Andy said: “Over the next few months we sometimes worked 100-hour weeks. We built the company up, using subcontractors whose work we already knew and trusted from previous jobs, and many of them are still working with us today. In fact, some are retiring we’ve known them that long!” The fact that Turnquay works with tradespeople they’ve known for years, explains in part why the company has a slick operation and a five-star reputation. They say that it’s important to them to have people they can trust. When a storm blew the temporary roof coverings off an extension last year, they called the roofer who abandoned his Saturday night dinner to drive 40 miles and fix it in two hours with his torch between his teeth.
Mark and Andy’s dream jobs are building bespoke houses, but as these don’t come along that often I ask them what’s the next best thing? The answer is building extensions and working on remodelling projects to transform people’s homes. At which point we’ll let the photos do the talking.
So, what are Turnquay all about? They describe themselves as ‘the perfect middle ground’ between a large commercial contractor and a small general builder because they have the professional approach of one and the hands-on skills of the other. Plus, they can tackle both kinds of jobs and everything in between.
They recently won a tender to build an extension to a cricket pavilion as part of a government contract, partly due to their reputation for planning ahead, dotting the I’s and crossing the Ts. And this is something they do for every client, Andy says. “We won’t ask the client for a decision on something by next week, we’ll provide a schedule that sets out in advance when we need a decision about something, like choosing a roof light or deciding what a style of doors they want.”
Although Turnquay is a relatively young company with just three years under their belt, the pair have known each other for almost a decade and worked together years ago at the same construction company. They were happily doing their own thing until an architect they knew made contact and asked if they could recommend a good company to handle a particular-sized job. Realising that between them they had the optimum skills and were the perfect fit and just days later Turnquay was born.
Andy said: “Over the next few months we sometimes worked 100-hour weeks. We built the company up, using subcontractors whose work we already knew and trusted from previous jobs, and many of them are still working with us today. In fact, some are retiring we’ve known them that long!” The fact that Turnquay works with tradespeople they’ve known for years, explains in part why the company has a slick operation and a five-star reputation. They say that it’s important to them to have people they can trust. When a storm blew the temporary roof coverings off an extension last year, they called the roofer who abandoned his Saturday night dinner to drive 40 miles and fix it in two hours with his torch between his teeth.
Mark and Andy’s dream jobs are building bespoke houses, but as these don’t come along that often I ask them what’s the next best thing? The answer is building extensions and working on remodelling projects to transform people’s homes. At which point we’ll let the photos do the talking.
Images: a cottage extension and bathroom by Turnquay
Interior design and wellbeing
Guest article by Emma Kelsall Interior Design
As an experienced interior designer, I always start a consultation by asking how a room or space makes you feel. Does it feel like a good place to be? Or does it make you feel anxious, frustrated or even sad or gloomy. I’ll then ask how you want to feel in that space. What feelings do you want your home to evoke? Calm and relaxed? Energised and motivated? Or do you want to feel comforted and secure? It might vary from room to room.
People don’t often stop to think about the ‘feel’ of their home. Social media, magazines and TV programmes are all about the ‘look’. Whilst this is important, it certainly is not the be-all and end-all of interior design. The best interior design is very much about making the home a happier and healthier place to be.
Read on…
Wines of the month, by Lucy, at Wines by the Sea
This month I’ve chosen a selection of wines which have grape varieties grown in regions they aren’t famous for, but rather an expression of the winemaker’s experimentation with their land. These two lovely whites and a red are also new to the shop following a trade tasting we attended in February.
Fiano, Berton Vineyard – New South Wales, Australia – £13.25
If you know the Fiano grape you might find it strange to see this variety being grown in Australia. It’s usually better associated with Sicily or Central Italy, but this is a benchmark expression, with crisp freshness and citrus flavours from start to finish. Pale lemon in colour, with aromas of lemon zest and orange and delicate hints of jasmine. On the palate, lime and pineapple flavours complement some herbaceous notes through to a zesty finish.
Clairette Blanche, Off The Charts – Bruce Jack – Western Cape, South Africa – £14.75
A South African wine made from a grape usually grown in Southern France. Delicious notes of nectarine and citrus layer with hints of vanilla, caramel and a touch of toffee, intertwined with orange peel, almond and subtle hints of clove. Beautifully balanced, with flavours of lime and lemongrass leading to a bright and zesty finish.
Zinfandel, Mavida Vineyard Reserve – Maipo, Chile – £11.75
Zinfandel, also known as Primitivo is more commonly found in the hills of Napa Valley or southern Italy around Puglia, however, this wine-making family have tried it out in Chile. It has a deep violet colour, and an attractive nose with notes of plums, raisins, ripe berries and some touches of cocoa and smoked tones. 30 per cent of the blend was aged in oak barrels for eight months. It would pair well with Easter lamb… or pizza.
All wines are available at Wines by the Sea, Albert Rd, Southsea.
That’s almost it other than to sign off with another selection of links we think might interest you.
Email me your newsletter suggestions at lisa@carlarchitect.co.uk.
Lisa
This week’s links
I’ve been visiting Suffolk this week and discovered the castle once owned by Mary Queen of Scots (in a town now more famous as home to Ed Sheeran) and stumbled across this charming little cinema in Southwold.
The week before I was in London, and I was impressed with the blend of old and new architecture at Coal Drops yard, as featured in Dezeen when it opened in 2018.
Spring has sprung and we’re thinking about small garden ideas.
Some Easter lamb recipes courtesy of Jamie Oliver.
Just Ken – because I loved watching Ryan Gosling perform it with 65 ‘Kens’ at Sunday’s Oscar Ceremony
March’s Newsletter & This Week’s Links
Share with
Asset Distribution.
I’ve been reading Gary Stevenson’s book The Trading Game this week. It’s just out and a jolly good story. I’m nearly finished, and, along with his various YouTube videos (see last week’s links), it is a thought-provoking body of work. The basic premise is that the rich are asset-stripping governments and the regular working classes, making both poorer. It’s obvious, but there isn’t less money around. It’s a question of distribution.
The asset that most of us think about is housing, and this has got me thinking about letting agents. In 1997, I left university and wanted to rent a flat in Southsea. Estate Agents sold houses. As far as I recall, their windows had no rental options, and with a lack of options, we ended up at Leaders on Osborne Road. I thought I’d check my memory. Are there more rental properties now? So, after being in a rabbit hole for two hours, here are a few Friday morning statements around property distribution and inequality:
• We often hear that the top 1% own more than everyone else or something like that. In the UK, 10% holds around half of all the wealth.
• It’s often reported that Blackrock, Vanguard and State Street own the world. Seems it’s sort of true.
• In 2000, there were 2 million rental properties in the UK. Now, there are 4.6 million. This suggests that my memory is correct; there are more properties to rent and more agents to market them.
• In that same period, 2.9 million new properties were built. But…
• …the UK population has grown from 59 million to 68 million over that same period.
• And there were 24.4 million UK households in 2000 and 28.1 million in 2022.
• Buy-to-let mortgages started in 1996 following the Housing Act 1988, which created the assured short-hold tenancy.
• Build to Rent came into being in 2012, and an early example was the Olympic Village, which was turned into rental flats. Vantage Tower in Woolston is entirely rental. A decent-sized one-bed is £1490 per month, and you pay extra for your dog.
• The Chancellor bought seven flats in Southampton. Seven? There is a bulk buy (MDR) avoidance of second home stamp duty at six or more, which he has just announced he is stopping in June.
• He also announced a plan to drop National Insurance for employees. But it’ll take at least ten years…
• This is a bit of a Hunt-fest, but he has said he’ll voluntarily pay more tax. Why? Who’d do that? Just pay what’s required by the law. If you’re worried about being seen as a tax dodger, then maybe you are. Remember when Starbucks said they’d pay more tax?
• The tax burden is at nearly 40% of GDP. The highest since the 1980s. If the government wasn’t getting poorer, as Stevenson suggested, shouldn’t increased taxes mean better public services? So, cutting taxes does what? Increases borrowing, and who does the Government borrow from? More wealth transfer.
• The average first-time buyer age is now 34, compared to around 27 in 2000.
• In 2014, four in ten adults had no property wealth, but one in ten had wealth in multiple properties.
• I know lots of people who own more than one home. I know quite a few who own several properties. But I live in a rarified world. Of the 28.1 million households, 2.1 million report owning at least one additional property. A 54% increase since 2010.
• Homeownership is falling but is at about 63%.
• More people own their homes outright than have a mortgage. It’s surprising, but then fewer people are getting mortgages. More people rent than own their homes outright. Just over half of rentals are private renters.
• The pandemic cost the UK taxpayer at least £310 billion (Stevenson says it’s £700 billion and growing). Where did all that go? Asset prices rose.
Friday morning allows. But we have a problem with the distribution of property and the inequality it presents. We all know that anyway. What we do about it is another matter. It requires more than a change in government, it requires people to make decisions as a collective. Spoken like the true Leftie I’m not, but I am a father and teacher, and younger folk are going to find it harder and harder to buy a home, especially those without hereditary privilege.
Feel free to let me know if you have any comments or suggestions. You will always find me at carl@carlarchitect.co.uk.
All the best
A date for your diary – update
Last month we suggested a date for your diary which has since changed – apologies. Our Southsea Property Drop-in event is now on Tuesday 16 April and is even bigger.
We’ll be teaming up with:
– Kevin Fogget and Alana Shihadeh of Now Build It, a Portsmouth-based building company.
– Neil Maxwell of Fry & Kent Estate Agency.
– Jay Pyper of DSF Interiors, a bespoke Design Supply & Fitting company in Southsea
– Emma Kelsall, a Southsea-based interior designer.
– Helen Pyper of boutique tile shop, Tiled, where the event is being held (Marmion Road, Southsea PO5 2AT)
Join us for a glass of wine – kindly supplied by Wines by the Sea and Crushed & Cured – and an informal chat to discuss your property plans, whether you’re extending, renovating, or styling your home, installing a new kitchen or bathroom or moving house.
Carl and Emma will be talking about the benefits of using an architect and the value of using an interior designer.
Pop in anytime but you must reserve a spot: propertydrop-in.eventbrite.com
Builder of the month – Turnquay Construction Ltd
Meet Andy and Mark – the yin and yang of Portsmouth-based building company, Turnquay Construction Ltd. Why yin and yang? “We complement each other really well,” Andy says. “It wasn’t always the case; we annoyed the hell out of each other in the first six months working together until we realised, we were both checking the other one’s work and there was no need. Now we have this great balance; probably because our skills overlap so we each play to our strengths, and we have got each other’s backs.”
Mark continues with a smile: “I’m the brain and Andy’s the brawn,” but in fact Mark’s the one with the more academic background and a degree in quantity surveying and is often found doing the paperwork, but he has also done his time laying floors. Andy started off as an apprentice carpenter before becoming an assistant site manager and working his way up. He still loves to get stuck in and get his hands dirty as often as he can.
So, what are Turnquay all about? They describe themselves as ‘the perfect middle ground’ between a large commercial contractor and a small general builder because they have the professional approach of one and the hands-on skills of the other. Plus, they can tackle both kinds of jobs and everything in between.
They recently won a tender to build an extension to a cricket pavilion as part of a government contract, partly due to their reputation for planning ahead, dotting the I’s and crossing the Ts. And this is something they do for every client, Andy says. “We won’t ask the client for a decision on something by next week, we’ll provide a schedule that sets out in advance when we need a decision about something, like choosing a roof light or deciding what a style of doors they want.”
Although Turnquay is a relatively young company with just three years under their belt, the pair have known each other for almost a decade and worked together years ago at the same construction company. They were happily doing their own thing until an architect they knew made contact and asked if they could recommend a good company to handle a particular-sized job. Realising that between them they had the optimum skills and were the perfect fit and just days later Turnquay was born.
Andy said: “Over the next few months we sometimes worked 100-hour weeks. We built the company up, using subcontractors whose work we already knew and trusted from previous jobs, and many of them are still working with us today. In fact, some are retiring we’ve known them that long!” The fact that Turnquay works with tradespeople they’ve known for years, explains in part why the company has a slick operation and a five-star reputation. They say that it’s important to them to have people they can trust. When a storm blew the temporary roof coverings off an extension last year, they called the roofer who abandoned his Saturday night dinner to drive 40 miles and fix it in two hours with his torch between his teeth.
Mark and Andy’s dream jobs are building bespoke houses, but as these don’t come along that often I ask them what’s the next best thing? The answer is building extensions and working on remodelling projects to transform people’s homes. At which point we’ll let the photos do the talking.
So, what are Turnquay all about? They describe themselves as ‘the perfect middle ground’ between a large commercial contractor and a small general builder because they have the professional approach of one and the hands-on skills of the other. Plus, they can tackle both kinds of jobs and everything in between.
They recently won a tender to build an extension to a cricket pavilion as part of a government contract, partly due to their reputation for planning ahead, dotting the I’s and crossing the Ts. And this is something they do for every client, Andy says. “We won’t ask the client for a decision on something by next week, we’ll provide a schedule that sets out in advance when we need a decision about something, like choosing a roof light or deciding what a style of doors they want.”
Although Turnquay is a relatively young company with just three years under their belt, the pair have known each other for almost a decade and worked together years ago at the same construction company. They were happily doing their own thing until an architect they knew made contact and asked if they could recommend a good company to handle a particular-sized job. Realising that between them they had the optimum skills and were the perfect fit and just days later Turnquay was born.
Andy said: “Over the next few months we sometimes worked 100-hour weeks. We built the company up, using subcontractors whose work we already knew and trusted from previous jobs, and many of them are still working with us today. In fact, some are retiring we’ve known them that long!” The fact that Turnquay works with tradespeople they’ve known for years, explains in part why the company has a slick operation and a five-star reputation. They say that it’s important to them to have people they can trust. When a storm blew the temporary roof coverings off an extension last year, they called the roofer who abandoned his Saturday night dinner to drive 40 miles and fix it in two hours with his torch between his teeth.
Mark and Andy’s dream jobs are building bespoke houses, but as these don’t come along that often I ask them what’s the next best thing? The answer is building extensions and working on remodelling projects to transform people’s homes. At which point we’ll let the photos do the talking.
Images: a cottage extension and bathroom by Turnquay
Interior design and wellbeing
Guest article by Emma Kelsall Interior Design
As an experienced interior designer, I always start a consultation by asking how a room or space makes you feel. Does it feel like a good place to be? Or does it make you feel anxious, frustrated or even sad or gloomy. I’ll then ask how you want to feel in that space. What feelings do you want your home to evoke? Calm and relaxed? Energised and motivated? Or do you want to feel comforted and secure? It might vary from room to room.
People don’t often stop to think about the ‘feel’ of their home. Social media, magazines and TV programmes are all about the ‘look’. Whilst this is important, it certainly is not the be-all and end-all of interior design. The best interior design is very much about making the home a happier and healthier place to be.
Read on…
Wines of the month, by Lucy, at Wines by the Sea
This month I’ve chosen a selection of wines which have grape varieties grown in regions they aren’t famous for, but rather an expression of the winemaker’s experimentation with their land. These two lovely whites and a red are also new to the shop following a trade tasting we attended in February.
Fiano, Berton Vineyard – New South Wales, Australia – £13.25
If you know the Fiano grape you might find it strange to see this variety being grown in Australia. It’s usually better associated with Sicily or Central Italy, but this is a benchmark expression, with crisp freshness and citrus flavours from start to finish. Pale lemon in colour, with aromas of lemon zest and orange and delicate hints of jasmine. On the palate, lime and pineapple flavours complement some herbaceous notes through to a zesty finish.
Clairette Blanche, Off The Charts – Bruce Jack – Western Cape, South Africa – £14.75
A South African wine made from a grape usually grown in Southern France. Delicious notes of nectarine and citrus layer with hints of vanilla, caramel and a touch of toffee, intertwined with orange peel, almond and subtle hints of clove. Beautifully balanced, with flavours of lime and lemongrass leading to a bright and zesty finish.
Zinfandel, Mavida Vineyard Reserve – Maipo, Chile – £11.75
Zinfandel, also known as Primitivo is more commonly found in the hills of Napa Valley or southern Italy around Puglia, however, this wine-making family have tried it out in Chile. It has a deep violet colour, and an attractive nose with notes of plums, raisins, ripe berries and some touches of cocoa and smoked tones. 30 per cent of the blend was aged in oak barrels for eight months. It would pair well with Easter lamb… or pizza.
All wines are available at Wines by the Sea, Albert Rd, Southsea.
That’s almost it other than to sign off with another selection of links we think might interest you.
Email me your newsletter suggestions at lisa@carlarchitect.co.uk.
Lisa
This week’s links
I’ve been visiting Suffolk this week and discovered the castle once owned by Mary Queen of Scots (in a town now more famous as home to Ed Sheeran) and stumbled across this charming little cinema in Southwold.
The week before I was in London, and I was impressed with the blend of old and new architecture at Coal Drops yard, as featured in Dezeen when it opened in 2018.
Spring has sprung and we’re thinking about small garden ideas.
Some Easter lamb recipes courtesy of Jamie Oliver.
Just Ken – because I loved watching Ryan Gosling perform it with 65 ‘Kens’ at Sunday’s Oscar Ceremony
Ready to talk?
When is a loft not a loft?
The Pros and Cons of a Kitchen Island
Increase your space and flexibility by going open-plan
Underfoot Innovation: the Yin and Yang of Underfloor Heating
Bi-fold Doors: the pros and cons
When your house has the wrong sort of space (and what to do about it)