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.


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 though surprisingly expensive and built only 3 floors high rather than 6+.

Both of which increase the price.