Rafe Fletcher: Statist Singapore builds homes whilst statist Britain just plans
This isn't complicated—it's willpower.
Rafe Fletcher is the founder of CWG and writes The Otium Den Substack
You can regularly eat and drink for free in Singapore.
Just turn up at one of the British property seminars that pepper the city’s function rooms. Developers and agents swallow the cost of a few freeloaders because it has been a fruitful market. Singaporeans are the second largest group of foreign home owners across England and Wales.
Demand isn’t spurred by colonial nostalgia. Rather, Singaporeans can buy a second home in Britain with far less hassle than in Singapore. And developers welcome the liquidity lacking in those supported only by a British-earned income. Just as a punitive tax regime leaves British buyers short of a deposit, so builders find construction can leave them short of a profit once they have navigated nebulous planning diktats.
Confronting the resulting housing bubble may look awkward for the Conservatives. Even in 2024, 37 percent of outright homeowners voted for them, a 12-point lead on Labour in second place. But the consequences of ducking the issues are starker. Those homeowners will see values deplete anyway under Labour’s trajectory of making everyone poorer. And the Conservatives will make no inroads with a generation shut out of the housing market.
It’s a lesser problem in Singapore where 90 per cent of citizens are homeowners. A product of mass public housebuilding under the Housing and Development Board (HDB). Only Singaporeans are eligible to buy these properties. Buyers draw upon their Central Provident Fund (CPF), a forced personal savings system to put down a deposit on HDBs’ subsidised values. Mortgages are offered with fixed interest rates of 2.6 per cent.
The HDB market is heavily restricted. They can’t be purchased by non-citizens and Singaporeans can only own one unit at a time. Re-sales are prohibited for five years, so there’s no “flipping” on the back of sudden value increases. If Singaporeans want to buy a second home, they must enter the fully private market, which constitutes just 20 per cent of the country’s housing stock. Doing so incurs 20 per cent stamp duty on any second property and 30% on additional ones after that.
Hence why buying in Britain is much more attractive where non-resident stamp duty is only two percent. With far lower tax rates and HDBs available at 3.8 times average income, Singaporeans have the means to buy British stock. Penalising such foreign buyers may play well optically. But as it is, they’re vital in getting homes built. Britain’s largest developer Barratt Redrow recently blamed a lack of them for missing its sales target. International capital helps developers meet affordable housing provisions under Section 106 of the Town and Country Planning Act. Without buyers for higher-price units, the …
This isn't complicated—it's willpower.
Rafe Fletcher is the founder of CWG and writes The Otium Den Substack
You can regularly eat and drink for free in Singapore.
Just turn up at one of the British property seminars that pepper the city’s function rooms. Developers and agents swallow the cost of a few freeloaders because it has been a fruitful market. Singaporeans are the second largest group of foreign home owners across England and Wales.
Demand isn’t spurred by colonial nostalgia. Rather, Singaporeans can buy a second home in Britain with far less hassle than in Singapore. And developers welcome the liquidity lacking in those supported only by a British-earned income. Just as a punitive tax regime leaves British buyers short of a deposit, so builders find construction can leave them short of a profit once they have navigated nebulous planning diktats.
Confronting the resulting housing bubble may look awkward for the Conservatives. Even in 2024, 37 percent of outright homeowners voted for them, a 12-point lead on Labour in second place. But the consequences of ducking the issues are starker. Those homeowners will see values deplete anyway under Labour’s trajectory of making everyone poorer. And the Conservatives will make no inroads with a generation shut out of the housing market.
It’s a lesser problem in Singapore where 90 per cent of citizens are homeowners. A product of mass public housebuilding under the Housing and Development Board (HDB). Only Singaporeans are eligible to buy these properties. Buyers draw upon their Central Provident Fund (CPF), a forced personal savings system to put down a deposit on HDBs’ subsidised values. Mortgages are offered with fixed interest rates of 2.6 per cent.
The HDB market is heavily restricted. They can’t be purchased by non-citizens and Singaporeans can only own one unit at a time. Re-sales are prohibited for five years, so there’s no “flipping” on the back of sudden value increases. If Singaporeans want to buy a second home, they must enter the fully private market, which constitutes just 20 per cent of the country’s housing stock. Doing so incurs 20 per cent stamp duty on any second property and 30% on additional ones after that.
Hence why buying in Britain is much more attractive where non-resident stamp duty is only two percent. With far lower tax rates and HDBs available at 3.8 times average income, Singaporeans have the means to buy British stock. Penalising such foreign buyers may play well optically. But as it is, they’re vital in getting homes built. Britain’s largest developer Barratt Redrow recently blamed a lack of them for missing its sales target. International capital helps developers meet affordable housing provisions under Section 106 of the Town and Country Planning Act. Without buyers for higher-price units, the …
Rafe Fletcher: Statist Singapore builds homes whilst statist Britain just plans
This isn't complicated—it's willpower.
Rafe Fletcher is the founder of CWG and writes The Otium Den Substack
You can regularly eat and drink for free in Singapore.
Just turn up at one of the British property seminars that pepper the city’s function rooms. Developers and agents swallow the cost of a few freeloaders because it has been a fruitful market. Singaporeans are the second largest group of foreign home owners across England and Wales.
Demand isn’t spurred by colonial nostalgia. Rather, Singaporeans can buy a second home in Britain with far less hassle than in Singapore. And developers welcome the liquidity lacking in those supported only by a British-earned income. Just as a punitive tax regime leaves British buyers short of a deposit, so builders find construction can leave them short of a profit once they have navigated nebulous planning diktats.
Confronting the resulting housing bubble may look awkward for the Conservatives. Even in 2024, 37 percent of outright homeowners voted for them, a 12-point lead on Labour in second place. But the consequences of ducking the issues are starker. Those homeowners will see values deplete anyway under Labour’s trajectory of making everyone poorer. And the Conservatives will make no inroads with a generation shut out of the housing market.
It’s a lesser problem in Singapore where 90 per cent of citizens are homeowners. A product of mass public housebuilding under the Housing and Development Board (HDB). Only Singaporeans are eligible to buy these properties. Buyers draw upon their Central Provident Fund (CPF), a forced personal savings system to put down a deposit on HDBs’ subsidised values. Mortgages are offered with fixed interest rates of 2.6 per cent.
The HDB market is heavily restricted. They can’t be purchased by non-citizens and Singaporeans can only own one unit at a time. Re-sales are prohibited for five years, so there’s no “flipping” on the back of sudden value increases. If Singaporeans want to buy a second home, they must enter the fully private market, which constitutes just 20 per cent of the country’s housing stock. Doing so incurs 20 per cent stamp duty on any second property and 30% on additional ones after that.
Hence why buying in Britain is much more attractive where non-resident stamp duty is only two percent. With far lower tax rates and HDBs available at 3.8 times average income, Singaporeans have the means to buy British stock. Penalising such foreign buyers may play well optically. But as it is, they’re vital in getting homes built. Britain’s largest developer Barratt Redrow recently blamed a lack of them for missing its sales target. International capital helps developers meet affordable housing provisions under Section 106 of the Town and Country Planning Act. Without buyers for higher-price units, the …
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