Thursday, 15 May 2014

What's so special about any of this?

From the BBC:

A new housing unit developed by the YMCA may offer one solution to the lack of affordable housing in London and other UK cities.

The Y:Cube is a 280-sq-ft (26-sq-m) studio-like apartment made for single occupancy. It can stand alone, or be stacked into bigger housing blocks.

The units are constructed in a factory and arrive on site ready-made, with water, heating and electricity incorporated into the unit and ready to be connected to local facilities.

The YMCA plans to open its first Y:Cube Housing scheme with 36 of the units in the London borough of Merton by the end of 2014.

A unit costs £30,000 to build, and the one-bedroom homes will be let for £140 per week - around 65% of the usual market rent.


It's quite nice inside, but it's not really different to any other flat.

It's a bit smaller, it costs a bit less to build, and the rent is a bit less.

What is important to note is that the rent which they will be charging has nothing to do with the cost of the unit - two-thirds of that £7,000 a year rent is pure location rent, just like anywhere else in Merton.

They say a Y:Cube will last for 60 years (from project summary here), let's assume half that and amortise it over thirty years and add on £1,000 a year for normal maintenance and insurance, that leaves £5,000 out of £7,000 going on location rent.

3 comments:

Bayard said...

The whole reaction to the "housing shortage" question is like an alcoholic in hospital insisting that whatever is wrong with him, it can't be as a result of his dirinking, because he's not an alcoholic.

The Stigler said...

It doesn't sound like a place where you can have a good time, but as it's your own place, you can do whatever you feel...

neil craig said...

Looks like a variant on shipping container housing http://a-place-to-stand.blogspot.co.uk/2011/08/22-million-alternative-to-400-million.html though surprisingly expensive and built only 3 floors high rather than 6+.

Both of which increase the price.