Tuesday, Jan 06, 2009
I think he means 'implode'
Reuters: London house prices could explode
London can expect a future explosion in house prices unless there is an increase in construction during the economic downturn, one of the city's key figures said on Tuesday.
Peter Rogers, chief executive at the London Development Agency (LDA), said prices will rocket because of pent-up demand.
"Demand exceeds supply and unless there is a steady stream of housing when the recovery does come there will be an explosion in house prices because of pent-up demand with no supply," he told London Assembly committee members.
Posted by little professor @ 07:17 PM (1588 views) Add Comment
18 Comments
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1. quiet guy said...
In fairness to Peter Rogers, I think he could be right. London property prices might explode again in something like 20 years from now.
2. Cheekie Charlie said...
I'm sure there was pent up demand in Liverpool in its boom years as a port. But with no jobs or money London will head the same way prersonally I would rather live anywhere rather than London.
3. new user 2007 said...
What worries me more about such individuals is that they are in influential positions. I can understand why VIs say such things (I don't think they believe it, but their jobs are based on prices needing to rise), but when public servants say such things it can only be pure incompetence and a lack of knowledge.
Even Gordon Brown, who tries to twist any fact or policy is scary in that he must really have believed all of this was temporary (otherwise why did he think holding off the election, as suggested in late 2007, would be a good idea...he must have assumed things would get better). Perhaps he really did believe the fantasy/ spin that his policies would remove boom and bust?
4. will said...
Pity the fool who jumps in now.
5. Yoss said...
No I think the average flat in London could well cost £500K quite soon again, but that will be when average wage is £75K.
I know it can't happen...but then I look back to the 70's when a posh house cost £8K.
6. Aje141269 said...
Surely house prices can only explode if banks restart lending ridiculous amounts of money to buyers?
7. plato said...
Fair enough if prime locations,wages and beautiful architecture warrant such value,as realistically one would expect this. However this is not the London housing market in general. It is the elite market and should not influence the value of the ordinary. This was the problem in the first place involving false valuations of very ordinary properties (in some cases slums) which spread throughout the UK (and indeed abroad) where wages could not possibly match house prices. We have the consequence of this now to experience in no small manner.
The last thing the country needs now is property price explosions, whatever the justification.
8. crunchy said...
Reuters: London house prices could explode ...into oblivion.
9. Soupdragon said...
Any sharp rise in property prices will be far in the future, there may be one or two small sharp shifts in exclusive localities (e.g. top end properties in Kensington etc) but these have little or no effect on the majority of housing, of which there is at least 1 million properties standing empty at the moment.
10. Some Idiot said...
There is no shortage of HOUSING in London, there is a shortage of AFFORDABLE HOUSING. No price explosion coming until someone decides to double everyones wages.......
11. This comment has been removed as it was found to be in breach of our Blog Policies.
12. Eternal Sceptic said...
There is a very real possiblity that society may explode long before property prices recover. Peak oil, climate change, overpopulation, combined with the onset of a major depression, make for very unhappy bedfellows.
13. Fly By Night said...
'Demand exceeds supply.'?
Really? you're sure about that, are you?
'Demand' meaning both desire and ability to buy?
So, prices must be going up then! The statistics must be wrong!
14. The Baldman said...
Did he say implode?
15. Paphos Property said...
That is really and highly unlikely that there would be an uptrend in construction or any other industry it that would at all be the case then we would have a rise in employment or at least there would not be job cuts, but the job cutting trend continues and cannot understand how the gentleman has made such comments.
16. Foobar said...
Peter Rogers is just another example of someone who thinks that the "demand" in "supply and demand" means the number of people who would like a house, not the number of people who would like a house and are willing and able to pay the current market price.
17. maddison said...
Its all about quality housing stock in London. I used to think that all this new build was better than victorian conversions as I had a bad experience with a converted flat ( maintenance issues) but I am not so sure now. Some of the new builds are rubbish and the pent up demand everyone is talking about is demand for quality housing at reasonable prices. There is a shortage of that in London for sure. People will get carried away again for sure
18. wealthyvagrant said...
London has a very transient workforce, when the jobs go, many will leave.