Jump to content
House Price Crash Forum
Sign in to follow this  
Come On Down

Is Housing Supply An Issue?

Recommended Posts

We all hear everybody trumpeting about housing supply being the reason house prices are high (oh no - not easy credit?!)

Well wheres the proof, where are the statistics to prove this? Are there any? I think its about time the "lack of supply prophets" gave us some facts and figures to prove this intangible and easy statement.

As we know there are thousands and thousands of empty flats that first time buyers could and should be able to move into if they werent overpriced.

My opinion is that the supply issue is only affecting houses with 3 beds or more. This is the type of house that the millions of baby boomers are occupying, and when they move into there retirement flats, they'll be a glut of these properties too, thus bringing down those prices.

What do you think?

Share this post


Link to post
Share on other sites
What do you think?

I think that too many people are confused about the difference between "a lack of supply of houses to live in" and "a lack of supply of houses on the market". Rampant HPI means that fewer people can afford to trade up as they used to, and there has been a big increase in private landlords over the last decade or so, who sell their properties relatively seldom. Those factors make the supply situation look a lot worse than it is, unless you're looking at the right numbers.

At the end of the day, there are still more houses than households. If there were a true housing shortage, rents would be astronomical by now.

Share this post


Link to post
Share on other sites

There is a supply issue, but that is only because the supply hasn't matched the demand created by loose credit. If the loose credit goes, the demand for property will evaporate and there will not be a problem for most people.

Basically, loose credit has created speculative demand over and above the normal demand for property. If the speculative demand goes then there would be adequate property for those who are actually buying it to live in.

Share this post


Link to post
Share on other sites
There is a supply issue, but that is only because the supply hasn't matched the demand created by loose credit. If the loose credit goes, the demand for property will evaporate and there will not be a problem for most people.

Basically, loose credit has created speculative demand over and above the normal demand for property. If the speculative demand goes then there would be adequate property for those who are actually buying it to live in.

Very good point.

And as interest rates go up, and people see that property doesnt always go up, despite what the daily express tells you, demand diminishes.

Perfect.

Share this post


Link to post
Share on other sites

Naw

Supply doesnt make the slightest difference, it is totally irrelevant. If you had zero houses they couldnt have prices could they? and if there was only 10 in the UK they might be a bit dearer but it wouldnt matter anyway because we all couldnt live there, especially if they were 1 bedroom starter homes and they were all in Milton Keynes and you worked in Glasgow. Naw, may aswell get rid of them all anyway.

Demand on the other hand might be :huh: But only if someone could find a really useful use for them

Share this post


Link to post
Share on other sites
Guest casaloco

There is NO HOUSING SHORTAGE. There are hundreds if not thousands of empty properties in each and every town, it's just they are all owned by BTL scum.

We need to get these BTLers out of the way... they are destroying society and destroying the economy. They've pushed up costs so all the big industry has upped sticks and left.

Mr BTLer: Get out of my way so that I can be productive. You arn't benefiting the economy and you arn't providing a service. Stop deluding yourself. Your just a greedy scumbag hoping to get free money from the latest "get-Rich-Quick" scheme. Nobody wants you, nobody likes you, your just a scam artist trying to make everyone else who is working give you a share of their hard earned money. Just go off somewhere and die in a corner.

(Maybe we should print this out A4 sized and start pasting on the front doors of empty BTL houses!)

Share this post


Link to post
Share on other sites
There is a supply issue, but that is only because the supply hasn't matched the demand created by loose credit. If the loose credit goes, the demand for property will evaporate and there will not be a problem for most people.

Basically, loose credit has created speculative demand over and above the normal demand for property. If the speculative demand goes then there would be adequate property for those who are actually buying it to live in.

What about 2nd home demand? Seems much more prevalent now than it did 20 years ago.

Isn't there a supply issue in Cornwall? And many other tourist hot spots as well?

In other areas of the UK ie SE commuter belt where are all the empty properties? Seems to me most property is filled either by owners or by renters.

I'd accept that there are specific areas of over supply ie Leeds. But how does an over supply in Leeds help an under supply in Woking. The supply isn't transferrable.

Share this post


Link to post
Share on other sites
What do you think?

Supply could be an issue but it can't be an excuse to pay £200K for a house that was sold for £100K 6-7 years ago. The greedy amateurs & cheap credit is more of an issue than supply. Just check your postcode to see if rightmove has enough of properties you would like, if it has, you have the answer. High interest rates will remove the speculative demand, if it has not already, then we'll see if housing supply is really an issue or not

Share this post


Link to post
Share on other sites

The law of supply and demand is simple...

Everyone either wants a house if they haven't got one, or a bigger one if they have already got one. Therefore all house purchases are competitive with would-be buyers bidding up prices.

Houses are therefore priced on the fine all commerical principle of, "how much can you afford?"

How much you can afford depends on how much you can borrow.

Therefore houseprices are determined by the availability of money to borrow. Nothing else.

Share this post


Link to post
Share on other sites
At the end of the day, there are still more houses than households. If there were a true housing shortage, rents would be astronomical by now.

Yes, if you can earn £85 a day with a house why rent?

Basically, loose credit has created speculative demand over and above the normal demand for property. If the speculative demand goes then there would be adequate property for those who are actually buying it to live in.

Yes, people use houses to store money because cash quickly becomes worthless

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 351 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.