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The Independent - Online News Story. Where Do They Get The Idea We Have Avoided A Crash?

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Hello all,

Where is the appropriate place on this site to paste news articles?

Keep hold of Persimmon as the builder joins FTSE 100 - crash avoided

What seems to be becoming clear, is that the UK is avoiding a housing crash and the housebuilding sector is going to avoid the company bankruptcies of the last cycle.

So at least they admit there is a cycle.

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Interesting optimism in the Independent article, I quote:

Housebuilders' shares have been climbing all year, despite the fact that house price inflation has been moderating, meaning companies can no longer expect the same fat profit margin from turning the land they bought four years ago into the latest fast-selling residential development. What seems to be becoming clear, is that the UK is avoiding a housing crash and the housebuilding sector is going to avoid the company bankruptcies of the last cycle. Meanwhile, the instruction coming through from the Government is: for pity's sake, build more homes.

http://news.independent.co.uk/business/ana...ticle331821.ece

Market "moderating" and they are going to build even more homes. Most builders would see a "moderating" ( falling) market as a signal to build LESS homes.

Edited by Realistbear

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I have no idea where they get this nonsense. The market has stopped dead in its tracks and somehow they conclude that this means we have avoided a crash, just more VI spin and lazy idiotic journalism.

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Build more homes? I think this is rubbish. The ODPM make figures up all the time. Since 10% of residential property in Kensington and Chelsea is void why not just fill the ones we already have lying about? I would like them to substantiate their requirement for more residential dwellings taking into account the dwellings that are curently lying unused (or is this not about making sure that people are housed so much as keeping the building INDUSTRY going).

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The ODPM make figures up all the time.

Too damn right.

In the credit report that Charlie posted, the ODPM house prices graph for 1989 showed no drop in average prices: The implication being that it would never have been possible for anyone to have had negative equity.

Prezza's office are a bunch of lying scumbags IMPO. I will never vote for "new" Labour.

:P

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I have no idea where they get this nonsense. The market has stopped dead in its tracks and somehow they conclude that this means we have avoided a crash, just more VI spin and lazy idiotic journalism.

ramping shares perhaps? Didn't some journalists get prosecuted for this recently?

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Build more homes? I think this is rubbish. The ODPM make figures up all the time. Since 10% of residential property in Kensington and Chelsea is void why not just fill the ones we already have lying about? I would like them to substantiate their requirement for more residential dwellings taking into account the dwellings that are curently lying unused (or is this not about making sure that people are housed so much as keeping the building INDUSTRY going).

Ever since PPP and the Private Finance Initiative became so poular with NuLabour, countles private companies have taken on what they thought were lucrative contracts, only to find reality coming up short. Likewise, I sometimes wonder whether the whole bubble has been engineered merely to inspire a private sector building boom to replace the more familiar and public-finance-costly council building projects. Maybe the whole idea is to create a glut of rental properties. In that way, the richer middle classes end up footing the bill for low cost rental accomodation, rather than those on lower income ........

Just a thought.

Edited by Sledgehead

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Maybe the whole idea is to create a glut of rental properties. In that way, the richer middle classes end up footing the bill for low cost rental accomodation, rather than those on lower income ........

Just a thought.

A good thought and one I would agree with - I think others have raised this before also.

It makes perfect sense.

The gov don't want to build social housing - it is stigmatising/expensive and requires a lot of capital input.

Answer; stimulate the housing market into building a glut of cheap housing. When it all goes t1ts up the LL are left holding a lot of worthless stock that can be rented out to low income families.

Result - the gov get lots of affordable housing for people but the market takes all the financial risk....

Briliant - everyones a winner - apart from the numpty BTL landlords who have bought expensive 2 bed apartments in the last two years. They think they have bought a valuable asset - in fact they may be funding the next generation of council estate...shame :P

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A good thought and one I would agree with - I think others have raised this before also.

It makes perfect sense.

The gov don't want to build social housing - it is stigmatising/expensive and requires a lot of capital input.

Answer; stimulate the housing market into building a glut of cheap housing. When it all goes t1ts up the LL are left holding a lot of worthless stock that can be rented out to low income families.

Result - the gov get lots of affordable housing for people but the market takes all the financial risk....

Briliant - everyones a winner - apart from the numpty BTL landlords who have bought expensive 2 bed apartments in the last two years. They think they have bought a valuable asset - in fact they may be funding the next generation of council estate...shame :P

irrespective of the undoubtable merits of this strategy, and its delicious irony - I can't see it being much of a vote winner.

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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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