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Inoperational Bumblebee

Bbc: Million New Homes By 2020 Target

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This seems surprisingly pro-HPC for the BBC? Mentions that criticism has been levelled at developers dragging their feet to artificially keep prices high, but stops short of explicitly stating prices of current stock needs to drop.

http://www.bbc.co.uk/news/uk-england-34209027

I'm starting to get the feeling this government actually want a HPC sharpish.

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Targets are meaningless if there's no intention of hitting them, which seems to have been the case for the last few decades.

Yes

Just remind us, Mr Carney, what the inflation target is just now please and when it was last hit

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The govt need to start mix & matching housebuilding numbers and promises with those on immigration.

We plan to keep housebuilding to under 100,000 a year / We plan to let in a million migrants by 2020

Sounds much closer to where things currently stand

Edited by rantnrave

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You should see the amount of "Homes" going up around London. Lewisham is ridiculous!! At this rate they wont have any issues hitting those targets. However I wouldn't call them homes, id say rat cages.

A lot of the flats going up in Lewisham are direct to rent, direct from the developer/agent - no options to buy.

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The govt need to start mix & matching housebuilding numbers and promises with those on immigration.

We plan to keep housebuilding to under 100,000 a year / We plan to let in a million migrants by 2020

Sounds much closer to where things currently stand

I agree although I would make it a lot more local. I.e let people choose how many houses that are going to be built in their area and from that extrapolate immigration control (with penalties for councils/governments that fail to meet the targets).

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You should see the amount of "Homes" going up around London. Lewisham is ridiculous!! At this rate they wont have any issues hitting those targets. However I wouldn't call them homes, id say rat cages.

A lot of the flats going up in Lewisham are direct to rent, direct from the developer/agent - no options to buy.

Yeah, I really don't think there is a shortage of housing in London, the number of new developments going up is insane.

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Yeah, I really don't think there is a shortage of housing in London, the number of new developments going up is insane.

Quite, the run-up to 2008 was nothing like this. A further proof to this is just a comparison of supply then and now in so many places in/near London. Nobody was screaming of a lack of a supply then. Now, that so much of stock needs flipping all the vested affiliates are shouting from the rooftops...

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This seems surprisingly pro-HPC for the BBC? Mentions that criticism has been levelled at developers dragging their feet to artificially keep prices high, but stops short of explicitly stating prices of current stock needs to drop.

http://www.bbc.co.uk/news/uk-england-34209027

I'm starting to get the feeling this government actually want a HPC sharpish.

Renters are more likely to vote labour

Owners more likely to vote tory

So it would suit Tories in the long run for hpc, but they'd need an acceptable political cost first.

Edited by Si1

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You should see the amount of "Homes" going up around London. Lewisham is ridiculous!! At this rate they wont have any issues hitting those targets. However I wouldn't call them homes, id say rat cages.

A lot of the flats going up in Lewisham are direct to rent, direct from the developer/agent - no options to buy.

Doesn't matter. Supply is supply. Rental only developments put downward pressure on yields and hence price.

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Renters are more likely to vote labour

Owners more likely to vote tory

So it would suit Tories in the long run for hpc, but they'd need an acceptable political cost first.

Agreed. The tories risk losing an entire generation of voters unless they can delivery affordable housing. Housing is now THE issue in politics as the priced-out generation (anyone under the age of 40 in London) start holding the balance of power. The government better start doling out the medicine to current home owners now while they're up against Corbyn. As for BTLers and foreign speculators - well, how many votes do they wield?

A start would to be to grant planning permission on a use-it-or-lose-it basis.

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Renters are more likely to vote labour

Owners more likely to vote tory

So it would suit Tories in the long run for hpc, but they'd need an acceptable political cost first.

Agreed.

The timescale involved doesn't fit well with an electoral cycle though:

Stage One - proper HPC. The 15-20% drops in 2008-09 were the fastest recorded drops in house price history. Across much of the country, at least 25% off is needed to bring prices down to more affordable levels though.

Stage Two - enough of today's priced out are able and willing to respond to the cheaper prices, ie, the fear of catching a falling knife has subsided

Stage Three - large numbers of formerly priced out move into purchased homes and experience a feel-good factor that boosts their support for the incumbent govt

Squeezing all of that into a five-year spell is just about possible, but for it to be this electoral cycle, we'd need to already see the HP indices into negative YoY territory. HTB and FLS are both scheduled to run until 2020 I note though.

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Depressingly typical of the bbc, no mention of mass immigration & no mention of extra roads etc. also rqd.

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They can build all the houses they want - and governments don't build houses - but if they are propped up by various taxpayer backed schemes no-one really benefits except the landholders, developers and financiers. The market will remain dysfunctional.

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A million new houses by 2020??

That's 550 new houses every day for the next five years..

Comedy gold...

Yes it certainly is...

Well these muppets had to spout something as Corbyn's been making a lot of noise about housing...

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also

Shortage of skilled workers holding back efforts to tackle Britain’s housing crisis

A shortage of skilled workers is holding back efforts to tackle Britain’s housing crisis, a new report by Lloyds Bank will warn. Some 87 per cent of construction companies plan to increase the size of their workforce in the coming year. Yet while around 100,000 vacancies are set to become available, one in four (24 per cent) of housebuilders cite a skills shortage as being “the biggest challenge” currently facing their business.

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A million new houses by 2020??

That's 550 new houses every day for the next five years..

Comedy gold...

Maybe they should bung the Chinese a few billion to build them. Osborne is pretty good at spending money he hasn't got.

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Yeah, I really don't think there is a shortage of housing in London, the number of new developments going up is insane.

Not as insane as the number of the number moving to the city.

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It may not matter how many homes they build. At some point people will simply refuse to take on a mountain of debt for a shoebox that they will work and pay for... for the rest of their lives. Corbyn's win may be a manifestation of that already having happened. Even with ZIRP, the markets have a limit.

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Yeah, I really don't think there is a shortage of housing in London, the number of new developments going up is insane.

The population rise is even greater. And 50% of new builds are sold in Asia and many wont be lived in.

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