Saturday, Jun 21, 2008
Low Inflation, Low Unemployment, better placed to weather.....
The Guardian: Housebuilders suffer 60% slump in starts as mortgage market tightens
The number of house builds has sunk by nearly 60% in 12 months as tighter mortgage lending puts off buyers.
The National House Building Council, with 20,000 registered housebuilders on its books, said there were 6,890 starts in the private sector in May, compared with 15,713 last year. This is a drop of 56%.
The number of public-sector houses being built is also decreasing with 2,699 houses being built this year, compared with 4,306 in May 2007.
About 60% of social housing is built by private developers.
This news came on the same day as Halifax, Britain's biggest mortgage lender, announced that it would raise its fixed rates on loans by 0.5% from today - the 20th time Halifax has changed its rates since the start of the year.
Posted by flintster1994 @ 06:36 AM (291 views) Add Comment
3 Comments
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1. inbreda said...
Some flakey maths... but if the number of new builds has shrunk by 60%, then surely so will the number of housebuilders - i.e. by 12,000. Or alternatively, each house builder can shrink its workforce by 60%, or some variation in between.
I don't know how many people the builders employ, but lets assume 5 each. That still means 60,000 redundancies from the building industry (or at least that part of it registered with the NHBC). That would be an extra 60,000 mortgage defaults (owner occupier or landlord)
How conservative is that estimate!!
2. mark said...
USA is in same position low inflation etc.... but we saw whole shopping centres closed in las vegas and windows with timber over them, it was pretty bad for a country with low inflation etc....
3. it_is_going_with_a_bang said...
Someone needs to tell the editor of Smartnewhomes.