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Uk Housebuilding Surge Predicted (Financial Times Article)

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UK housebuilding surge predicted

By Gill Plimmer

Britain could be braced for a housebuilding boom after fresh figures revealed a sharp pick-up in planning applications, as government schemes to boost mortgage approvals raised confidence in the housing market.

The Home Builders' Federation said the number of planning approvals for new homes surged 49 per cent between April and June compared with the same period last year. In the first six months of the year, 77,686 permissions were granted, a 26 per cent year-on-year increase.

The strong rise suggests that moves to relax planning laws and encourage councils to release undeveloped land are having an effect. It also indicates that housebuilders have an increased appetite for development amid the tentative economic recovery.

The industry has been one of the biggest beneficiaries of successive government schemes to boost the economy, from Funding for Lending to Help to Buy, which uses taxpayers' money to subsidise mortgages. More than 12,500 homes were sold under Help to Buy in the five months since the scheme was introduced in April.

But not all sites with planning permission will be developed. The HBF said that many of the planning consents came with hundreds of conditions that would delay work starting on site.

Stewart Baseley, executive chairman of the Federation, said: "At a time when developers are looking to build more much needed homes, we are increasingly concerned by the conditions attached to many of these permissions that prevent actual work starting on site.

"Local authorities must ensure planning conditions are not overly onerous or unrealistic otherwise despite the success of Help to Buy, the much needed increase in housing supply will be held back."

The 37,053 permissions granted in the second quarter was the highest number for the period since 2008. The HBF estimates that 220,000 new homes a year are needed to meet housing demand.

According to the ONS, an increase in private homes being built is already fuelling a surge in construction. Activity in the construction sector – which accounts for 6 per cent of the economy – rose at its fastest pace in six years in August.

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Now they think there is a massive profit in building and they will have some buyers thanks to government stupidity the builders decide to build.

The big builders should be arrested for market price fixing,

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Now they think there is a massive profit in building and they will have some buyers thanks to government stupidity the builders decide to build.

The big builders should be arrested for market price fixing,

But if they end up building all these houses and the funding is removed, then perhaps there will be a situation where there is a surplus eventually.

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But if they end up building all these houses and the funding is removed, then perhaps there will be a situation where there is a surplus eventually.

Or they will mothball their sights and sack all their sub-constractors and wait for conditions more suitable for them...like the last time.

Their build able land should be taxed heavily ort confiscated and sold to private individuals...simple as that.

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Or they will mothball their sights and sack all their sub-constractors and wait for conditions more suitable for them...like the last time.

Their build able land should be taxed heavily ort confiscated and sold to private individuals...simple as that.

Well, that idea seems to be mainstream now (Labour) and a vote winner so I think the future of tax will be taxing land wealth in one way or another. It's a no-brainer and even many Tories are in favour of it (LVT).

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Well, that idea seems to be mainstream now (Labour) and a vote winner so I think the future of tax will be taxing land wealth in one way or another. It's a no-brainer and even many Tories are in favour of it (LVT).

:lol:

They couldn't even get the "mansion tax" past the Tory donors, LVT will never get off the ground unless there's a violent revolution.

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