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Paddles

Official - Never Was A Housing Boom

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http://www.landlordexpert.co.uk/index.php?news=1227

I love LandlordExpert.co.uk, their arguments are always well thought out and logical. Erm.

They even manage to slip the classic "too little supply, too much demand" argument in at the end of the article.

Which explains why my monthly rent has risen precisely 0% in over 2 years. :rolleyes:

Guess that also explains the hundreds or possibly thousands of empty flats in almost every major city in the UK. All fine and dandy whilst house prices are booming but what happens when prices really start to turn? ;)

What happens to the supply/demand theory during a recession when the immigrants move out and property becomes a bad investment?

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Environmentalists’ I-told-you-so-gloating over householders’ difficulties is particularly galling. It was they who created the housing shortage in the first place.

Astounding. I must say that's an argument I haven't come across before. Mind you, the reason that I haven't come across it may be that much of the article sounds like the ravings of a lunatic. He also says

The Jeremiahs are gloating too soon. The credit crunch is real enough, but it is too early to say that house prices are going to collapse. If that were to happen, the outcome would be destructive to say the least. Instead of pushing prices up, the underlying shortage in housebuilding would lead to homelessness.

That just makes no sense at all: if prices fall then it'll lead to homelessness. What????

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That just makes no sense at all: if prices fall then it'll lead to homelessness. What????

I think what he is trying to say is that if prices fall, builders will build less houses, which will mean supply will fall behind demand. There is an element of this in the cycle we tend to have in this country. This effect is increased by the fact that planners reduce the number of permissions after a downturn. All this helps to drive the next boom, and then just as they come to terms with that and start permitting and building lots more homes…Bust.

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