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Economic Sensation

Britain Needs A Million New Homes - Discuss

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According to this article Britain needs a million new homes and is not building them quicker.

http://property.timesonline.co.uk/article/...1791729,00.html

So not only do we have falling interest rates but rising demand for property. Now where do you think that will send prices?

I know its only another article but it counteracts other articles that i have been shown such as the economist one.

ES

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Again, Economics 101, if prices are falling then supply outstrips demand at current prices.

Who "needs" these homes at this price?  No one.

According to the article a lot of people, 175,000 new households per year to be precise. People are living longer, we have more immigrants and more one-person households. A lot of these will be able to buy and will be in the market, pushing prices higher. Your assumption that no-one needs them is based on your perception, not the fact that they will be needed but homes are not being built fast enough.

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There are lots of homes standing empty in the UK. If a shortage of housing was the only problem then someone would be revoating these and selling/renting them.

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over the past 30 years housing stock has gone up 30%, population has only gone up 10%....

We are currently building 1 house for every two new people immagrtation or born in the country, but this is below the average number of people living in a property... So no housing stock is alot higher than ever before in relation to population, and we currently building more than enough proeprties, based on current levels of people living in a property. As the housing market and the economy tanks, people will look to move in together get lodgers, move back home, house share to cut costs, and many of the economic migrants will return to there own countries drastically reducing demand

Edited by moosetea

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According to the article a lot of people, 175,000 new households per year to be precise.  People are living longer, we have more immigrants and more one-person households.  A lot of these will be able to buy and will be in the market, pushing prices higher.  Your assumption that no-one needs them is based on your perception, not the fact that they will be needed but homes are not being built fast enough.

But you missed the point he made: at this price

No FTB's as it is - so you think they are going to grow money on trees in the future? Like you said, people are living longer - but what sort of life is it when you become a constant wage-slave just to make a bank rich via a huge mortgage...

Nomadd

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over the past 30 years housing stock has gone up 30%, population has only gone up 10%....

We are currently building 1 house for every two new people immagrtation or born in the country, but this is below the average number of people living in a property...  So no housing stock is alot higher than ever before in relation to population, and we currently building more than enough proeprties, based on current levels of people living in a property.  As the housing market and the economy tanks, people will look to move in together get lodgers, move back home, house share to cut costs, and many of the economic migrants will return to there own countries drastically reducing demand

Well according to the site, longer life expectancy, more single person households and more immigrants means we will have a shortage of 66,000 houses a year. Its not just about the population, its also that family sizes are getting smaller. You can argue with the guys who compiled the data, if you think you know more than they do after their extensive and exhaustive study thats your beef. That is unless you have any data to actually back up what you are saying? ( couldn't see Duplexes link)

Remember its IF, not when, the housing market or economy tanks, thats a big set of assumptions to make looking at the last few years. How can it tank if there is a lack of houses to meet demand?

Edited by Economic Sensation

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Well according to the site, longer life expectancy, more single person households and more immigrants means we will have a shortage of 66,000 houses a year.  Its not just about the population, its also that family sizes are getting smaller.  You can argue with the guys who compiled the data, if you think you know more than they do after their extensive and exhaustive study thats your beef.  That is unless you have any data to actually back up what you are saying? ( couldn't see Duplexes link)

Remember its IF, not when, the housing market or economy tanks, thats a big set of assumptions to make looking at the last few years.  How can it tank if there is a lack of houses to meet demand?

Hometrack suck, I wouldn't go on what wrigglesworth the tool had to say!

Not even a new pope or the future king of england has lifted the market!

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How can it tank if there is a lack of houses to meet demand?

There are about twenty empty two-bed flats on my road, with dozens more being built (the local council say that so many have been built that they've met predicted local housing demand from now until _2012_).

Where's the demand?

Edited by MarkG

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I was in Germany a few years ago staying in a family house. We heard an ambulance go past and suddenly everyone stood up and shouted "empty flat". There was shuch a shortgage of housing that an ambulance siren could indicate a vacant flat coming on the rental market.

Now this was all done in jest but indicates the shortage of housing in that area at the time.

What happened to house purchase and rent prices? There was no house price inflation. Poeple just shared or converted houses into flats.

It doesn't matter how much housing there is or isn't people can only buy what they can afford IMHO

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Amazingly we had the biggest supply of purchasers available in the late eighties and early ninties with last the baby boomers aged between 25 - 35 years old coming into force. this didn't send the prices spiralling in the early ninties. most people I knew waited and these were holding 20K to 30K deposits for houses that cost between 60K to 100K in London. There was no pressure to buy in the early nnties as no-one else was and prices were going down. The policy was wait and see. Interest rates came back from 12% to 6% there was stil no panic. Basically its supply and demand. Too many houses for sale few interested buyers theres no urgency until a bargain pops up. This I see in the next few years regardless of interest rates as alot of people have over budgeted in the housing boom, with the USA bust due and unemployment increasing here its going to be a party out there for the buyer.

Brother can U spare me a Euro ....1929 part 2

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Where's the demand?

In recent years, most of the demand has been from investors looking for a quick buck, rather than from people actually intending to owner-occupy.

This demand has all but dried up, which is why there are so many blocks of 'lifestyle' appartments sitting practically empty in our city centres.

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Personally i feel this bubble and house/flat building frenzy has been co-ordinated, the more the government says we need more flats the more flats are built when we dont need them... It means we wont run out of cheap housing stock in future, this current bubble hasnt been created by limited stock caused by new people entering the market, FTBers quantities have fallen off a cliff, the bubble has been created by BTLers demanding more and needing flats at higher and higher prices. The demand isnt from people who want to live in a flat, the demand is from mis investment, people buying a second property to rent out, do up or just hold so it can be sold later on...

Property that has been bought for investment reasons which noone really wants to live in at these prices will crash very badly, because the secondary market just isnt there.

Edited by moosetea

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Just F@cking build them.

A house is to live in, not for someone to hold power over other people. I.E. BTL's

Most normal people just want the right to live, not to be dictated to where they muct live and how much they must pay.

Our government has failed us!

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One possible source of so-called "demand" ... A couple of snippets from the Government's response to the consultation on their shared ownership scheme "HomeBuy", which came out last week:

HomeBuy will have only a marginal effect on house price inflation. A large part of the programme will constitute newly built properties and so will increase housing supply. We estimate that, if we help an extra 100,000 people into home ownership by 2010 through our schemes, that the inflationary impact of HomeBuy would be between 0.04 - 0.06% per year.

Government's response to consultation

<_<

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Property that has been bought for investment reasons which noone really wants to live in at these prices will crash very badly, because the secondary market just isnt there.

Agreed.

The bottom line is that in this country there is already more than enough supply for everyone to own a property who wants one. However, there will never be enough supply if everyone also wants two, three or more properties as an 'investment'.

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Hmmmm

Perhaps the question should be to 'Britain needs a million new homes - Discuss' should be that in fact Britain needs to reduce its population by 5 million - Discuss!

Whats the point of carpeting our shrinking countryside with crap houses that will become the ghetos of the future.

Edited by Crazy88s

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According to this article Britain needs a million new homes and is not building them quicker.

http://property.timesonline.co.uk/article/...1791729,00.html

So not only do we have falling interest rates but rising demand for property.  Now where do you think that will send prices?

I know its only another article but it counteracts other articles that i have been shown such as the economist one.

ES

(1) We don't don't have falling interest rates.

(2) The people who most need houses are the least able to pay high prices for them.

If you are hoping that people's suffering (in overcrowded accomodation) is your ticket to riches, I am afraid you are wrong.

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Following on from the post by Duplex above and his interesting link...

http://www.emptyhomes.com

If these figures are accurate there are still many empty homes in the UK. The SE for example has more in 2004 than in 2003.

Of course demand for housing has cause a house price rise mainly due to free and easy money and the belief that its the only way you are going to retire safely. Prices have also been badly skewed by a surge in multiple property buys through BTL and second homes, again for the reason above.

Do we need more homes...probably not. This will only become apparent when the market has shaken off its imbalance...then its time to start all over again!

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According to the article a lot of people, 175,000 new households per year to be precise.  People are living longer, we have more immigrants and more one-person households.  A lot of these will be able to buy and will be in the market, pushing prices higher.  Your assumption that no-one needs them is based on your perception, not the fact that they will be needed but homes are not being built fast enough.

trouble is that although people may live longer they don't continue to care for themselves in their own home, Sheltered housing and care home numbers are increasing as the population ages,

Immigrants outstrip natural poplutaion increases but if ressecion comes along they would not stick around,

as for one person households, was there not a report out the other day about single people being the poorest demographic group.

Edited by Kam

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over the past 30 years housing stock has gone up 30%, population has only gone up 10%....

We are currently building 1 house for every two new people immagrtation or born in the country, but this is below the average number of people living in a property... 

Why doesn't everyone just become a BTL landlord. That way the building industry will forever more keep the economy kicking over. It makes perfect sense.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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