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John The Pessimist

Dt Nails Political Hpi Agenda

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Disagree with the idea that nothing much is wrong with planning permissions...more being granted etc. 9/10 planning applications are NOT for new dwellings. You still have to lodge an application for things like loft conversions (even if its guaranteed granted with PD) The fact is planning permission typically costs about £500 to the council, £500 or so to architects, and a grand is a big lump of cash to get no return on, so people typically only lodge permissions they know there is a very good chance they will get. People arent buying up land in the middle of nowhere and submitting applications as they might do in a freer system.

Agree with the bit about big housebuilding though. Constantly amazes me how clowncils can keep a straight face when denying pretty inconsequential minor applications for extensions whilst approving massive developments of hundreds of homes in the same village. Take parking for example. Big builders love the regulations for this. If you are a self builder, you are almost always, outside of inner city areas at least, expected to provide multiple off road parking spaces, AND ample off-road turning space so the car can exit the plot front first. Meanwhile, the big house builders are typically 'forced' (by their own lobbying, I expect) to provide no more than one garage space and one parking space, allowing them to cram in more houses and make more profit. Turning space off road, forget it.

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Quite good, but he claims its all to do with a housing shortage and doesn't address that its a credit that is the primary driver.

Credit drives the prices of course, but supply determines where you are in the 'pecking order', and provides a floor to prices when credit dries up.

The supply situation in SE England and London was quite different to Ireland, for instance, both North and South when the 2008 crash occurred. In Ireland they built and built at a very high level in the easy credit years up to 2008 - 81,000 in 2005, 93,000 in 2006, in the Irish Republic alone - population 4.5m. Post-2008 credit dried up both in Ireland and mainland GB, but in Ireland prices collapsed and are only just recovering from the lows, whereas in the UK there was a dip but subsequent massive price growth.

Now in Northern Ireland, £150k will buy you a nice enough house, £250k will get you a very nice house and you can basically have your pick at £500k. So public sector / average income earners can live in fairly decent accommodation.

Whereas in SE England / London (where I now live) the supply has declined relative to demand / population, so everyone basically needs to move down a step on the ladder - ie doctors live in the houses once lived in by teachers, teachers in houses lived in by bus drivers, bus drivers in flats maybe lived in by the very poor or elderly. The credit conditions of course determine how inflated the prices are, but the supply determines the order of allocation for a given demand, and explains why certain London boroughs can only be afforded by those on professional incomes.

.

Needless to say, I plan to move back to Northern Ireland sometime soon. I would certainly recommend it for quality of life (despite many imperfections).

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Quite good, but he claims its all to do with a housing shortage and doesn't address that its a credit that is the primary driver.

The point of the article is that the government are more concerned with getting the result they want from the EU referendum than actually doing anything to constructively deal with the utter shambles that is the UK housing market - why the housing market is such a shambles isn't really the point. Anything that rams home the fact that the housing market is broken can only be good.

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Quite good, but he claims its all to do with a housing shortage and doesn't address that its credit PREDATORY LIAR LOANS that is the primary driver..... I.E. ANYTHING OVER 3 X NON-LIAR INCOME IS A LIAR LOAN.

Corrected.

Edited by eric pebble

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Credit drives the prices of course, but supply determines where you are in the 'pecking order', and provides a floor to prices when credit dries up.

The supply situation in SE England and London was quite different to Ireland, for instance, both North and South when the 2008 crash occurred. In Ireland they built and built at a very high level in the easy credit years up to 2008 - 81,000 in 2005, 93,000 in 2006, in the Irish Republic alone - population 4.5m. Post-2008 credit dried up both in Ireland and mainland GB, but in Ireland prices collapsed and are only just recovering from the lows, whereas in the UK there was a dip but subsequent massive price growth.

Now in Northern Ireland, £150k will buy you a nice enough house, £250k will get you a very nice house and you can basically have your pick at £500k. So public sector / average income earners can live in fairly decent accommodation.

Whereas in SE England / London (where I now live) the supply has declined relative to demand / population, so everyone basically needs to move down a step on the ladder - ie doctors live in the houses once lived in by teachers, teachers in houses lived in by bus drivers, bus drivers in flats maybe lived in by the very poor or elderly. The credit conditions of course determine how inflated the prices are, but the supply determines the order of allocation for a given demand, and explains why certain London boroughs can only be afforded by those on professional incomes.

.

Needless to say, I plan to move back to Northern Ireland sometime soon. I would certainly recommend it for quality of life (despite many imperfections).

Ireland had no ability to print like the uk had. the uk also had taxpayers underwriting the house market with help to buy. the Uk market will crash just like Ireland, or worse. The uk bought time with a printathon of cheap money. they kicked the can

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Corrected.

Its BTL loans where you can waltz into a bank wth 25% and come out with loadsamoney that are the issue.

End BTL mortgages.

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