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Turnbull2000

Housing Supply Shortfall To Reach 1 Million Next Year

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http://www.guardian.co.uk/business/2009/se...lding-shortfall

The shortfall in the supply of housing in England will total 1m homes by the end of next year, resulting in record levels of overcrowding and longer than ever waiting lists, a study published today claims.

England is facing the lowest levels of homebuilding for more than 80 years, the report by the Smith Institute thinktank, the Town and Country Planning Association and Price WaterhouseCoopers says.

They forecast that fewer than 100,000 homes will be built this year – just 40% of the amount needed to satisfy rising demand from an estimated 252,000 new households every year between now and 2031.

With government, local authorities, builders, NIMBYs and older homeowners all determined to retain the status quo, can you ever see this reversing? This points to a long decline in living standards and a more investor driven market until breaking point is reached many years ahead.

The auction rooms are becoming dominated by investors, so perhaps the recent decline in ownership levels is set to continue as new rentier class evolves and property is held by ever decreasing numbers. This could be accelerated further if the Tories abolish inheritence tax or increase the threshold.

http://www.yourmortgage.co.uk/news/3626192

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I thought there was 1 milion empty properties in UK + 200 000 reposesions coming to the market soon after the election. Most countries have shortage of housing bar Spain. Lets start building on that ugly English green belt land.

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A majority do indeed want there own homes, that is for sure but real demand is dictated by:

Low LTV or large deposit

Squeky clean credit history

The above has, in my opinion, wound in the previous demand of the 2000 - 2007 era. There is no more easy credit so builders etc will have to adjust to the low demand that is now reality.

The lack of mass building indicates to me that demand is indeed much lower then the VI groups state.

After the upcoming Public Spending cuts I would imagine that demand will be even lower.

The builders groups in the above article are so leveraged that they need one last boom to off load the land etc that they bought at the top of the boom.

Only my opinion of course.

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