Tuesday, May 19, 2009
Despite thousands of new builds lying empty there's going to be a shortage and prices will rise!
Evening Standard: Prices slashed on new homes
Evening standard ramping. They reckons because a lot of building projects have been mothballed this will create a supply shortage in the coming months, and therefore prices will rocket. Because nobody can get mortgages on new builds without at least 20% deposit I doubt their logic. The whole article is wishful thinking presumably cobbled together from a press release sent out by some building trade body.
Posted by meltsheep @ 12:00 PM (658 views) Add Comment
3 Comments
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1. 51ck-6-51x said...
Based on the Estates Gazette Group's Red Book Report 'Residential Development in London 2009' (£550).
EG are part of Reed Business Information, a large magazine publisher.
2. james stephenson said...
All of the ramping is crap.
Houses still massively overpriced.
Many people in nequity and can't trade up.
How many FTBs have a 20% deposit.
Unemployment rising.
Reposessions higher than last recession (interest rates were at 10% then).
Tax increases of about £4K per year on second home owners.
Where is the demand coming from in the next two years?
Foreign investors? They know as much as anyone that our houses are still massively overpriced and may never rise to the giddy levels they were if lending standards are tighter.
3. it_is_going_with_a_bang said...
What concerns me somewhat is the opinion that people in general have that a good housing market means "house price inflation of 5% or 10% a year forever". Are people really that stupid?
A good housing market is one that should just be around 2% inflation a year along wilth everything else. Do we really have that little going for us in this country that it all comes down to property inflation and pretty much nothing else?
What a sad sad world.