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Are houses depreciating assets when land is excluded?

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Logic would say yes, but several factors seem to have made this generally not the case in the UK over the last few decades. Reasons off the top of my head.. (some linked)

  • Value in 'period property'
  • Building technology has neither radically improved nor become less labour intensive
  • Regulations make building more expensive / restrictive than in the past
  • Other than less maintenance to deal with, the experience of living in a new house isn't much different than an old one  (unlike say a car)
     

Still, it's bonkers that a house built by the Victorians 150 years ago is more desirable than one constructed in 2017. However, this could all radically change with custom 3D printing. We could see vastly cheaper new builds that are far more desirable. Even just a change in fashion could have a big impact. 

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Haha memories of brick threads!  Stock pile sand. Seriously though maybe if UK inflation takes off......

rebuild costs escalate?

The builders would be after subsidies as their margins collapsed. Or maybe they would just go back to landbanking, and lay off most of the labour.

Edited by Ash4781

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  • 295 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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