Wednesday, Mar 02, 2016

Totally screwed up

Guardian: Developers accused of restricting supply of new homes to boost profits

Britain’s developers have been accused of increasing their profits from the UK’s housing crisis by restricting the supply of new houses to keep prices artificially high. Latest figures reveal that nearly half a million homes in England now have planning permission granted but have yet to be built. The length of time it takes for developers to complete a house has jumped from 24 months to 32. It reignites a long-running row between policymakers and the housebuilding sector over who is to blame for the current housing shortage.

Posted by quiet guy @ 02:25 AM (2135 views) Add Comment

10 Comments

1. enuii said...

Nationalise the lot, it is plain business sense to maximise profit out of unit cost and maintain a sustainable work load.

Wednesday, March 2, 2016 08:01AM Report Comment
 

2. Loneranger said...

@1. Either that or introduce a timeframe tax that penalises developers who fail to complete construction within a given timescale ie the historic average construction time of new build properties....

Wednesday, March 2, 2016 09:49AM Report Comment
 

3. khards said...

Scrap planning permission then they would soon start building quickly.

Wednesday, March 2, 2016 09:59AM Report Comment
 

4. happy mondays said...

Tax land banking.

Wednesday, March 2, 2016 01:19PM Report Comment
 

5. khards said...

No need to tax it, if it's not a scarce and so valuable. Simply reduce the value by removing relaxing permission within 0.5miles of existing settlements.

Wednesday, March 2, 2016 05:14PM Report Comment
 

6. nickb said...

what shortage? There is an affordability crisis, but I have yet to see convincing evidence of a physical shortage, whatever that means.

Wednesday, March 2, 2016 06:17PM Report Comment
 

7. pricedoutmouse said...

@4. khards - Not sure how that would work. It would certainly cause a building frenzy but how would people define existing settlements? Would you freeze the definition at one date in the legislation and then have to look up a historic map to see which buildings were there? If it's a rolling date I think much of Britain would look like LA in a few decades. Very grey. Would no planning permission people could build what they like? Tower blocks and night clubs in people's rural gardens?

No need to build, just set interest rates to 5% for a few years and watch all the BTL and empty investment homes flood the market at bargain prices.

Wednesday, March 2, 2016 10:49PM Report Comment
 

8. libertas said...

Problem is, if builders do not protect their profits, they go out of business and then you get ZERO delivery.

Government should be focussed on barriers to profit and competition, not the other way around.

Wednesday, March 2, 2016 10:49PM Report Comment
 

9. sibley's b'stard child said...

I'm pretty sure Libby that the unprofitable builders would replaced by those that could deliver at profit. That's what tends to happen in a free market - amazing stuff i'm sure you'll agree.

In any event, this is nothing new. The question is: why is this allowed to continue? Because the rentiers donate 7 figure sums to the gov of the day.

Solution is quite simple - use it or lose it planning permissions lasting 12 months from issue

Thursday, March 3, 2016 12:59PM Report Comment
 

10. tenyearstogetmymoneyback said...

This company

http://hoburnedevelopments.co.uk/hoburne-farm-estate

has been building the same estate near here for about thirty years !

It actually seems to have worked out well for them with well built houses in a very desirable estate.
I think they only employ about ten people doing the building and complete about a dozen houses a year.

Friday, March 4, 2016 09:25PM Report Comment
 

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