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We Need More Houses To Bring Prices Down

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We need more houses to bring prices down, but as prices come down, builders stop building

Answers to resolve the above please

There are large numbers of houses in this country that are empty, soon they will come on to the market meaning cheaper prices and lots of them.

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We don't need more houses until we've filled the several hundred thousand empty ones we already have.

Supply is doing just fine, for now. The new generation of mewling chavspawn can be crammed into the new innercity "luxury" tower blocks.

Edited by DementedTuna

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They're not empty or a blight on the landscape, they're Social Housing Inhibitted of Tennancy (S.H.I.T.) to give it it's politically correct designation.

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The demand argument was a shaky one at best. We have 850,000 empty homes in the UK. admittedly a lot of them are in Northern towns with few jobs, but there are still plenty in other places. As recession sets in, lots of economic migrants will leave, making even more homes available.

One major constraint on supply was the fact that speculators were piling into the market on the belief they could make 10%+ pa guaranteed. It didn't really matter if they could let out the property as the cost of servicing the mortgage would have been outweighed by the vast sums they thought they could make over a year or two, they didn;t mind throwing money at it every month. They also wouldn't have to deal with any damage that a tenant might cause. That's why there are plenty of new build blocks with empty flats and houses, even though they were completed several years ago.

Ultimately, if we really had a problem of lack of housing, wouldn't there be vast numbers of homeless people on the street?

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We need more houses to bring prices down, but as prices come down, builders stop building

Answers to resolve the above please

That is a conundrum, but not as big as government's 2 policy planks (and I didn't mean GB and AD) of having affordable housing while keeping prices high for everyone else.

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We need more houses to bring prices down, but as prices come down, builders stop building

Answers to resolve the above please

A cull of population in Cornwall, Newcastle and the North West.

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We need more houses to bring prices down, but as prices come down, builders stop building

Answers to resolve the above please

Our government are lying, greedy shit bags.

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We need more houses to bring prices down, but as prices come down, builders stop building

Answers to resolve the above please

Not true, prices will come down because there is insuffiecient demand for housing at the current pric elevel. It will take some time for this to happen but I expect panicking BTL's and developers to eventually increase supply to the market at prices which are actually affordable on sensible borrowing multiples for the man in the street.

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Not true, prices will come down because there is insuffiecient demand for housing at the current pric elevel. It will take some time for this to happen but I expect panicking BTL's and developers to eventually increase supply to the market at prices which are actually affordable on sensible borrowing multiples for the man in the street.

Agreed, speculation by amatures as explained by the graph here on HPC in the third sector, titled 'public greed' or whatever, which is (according to the graph) about to retreat right back where it came from. I have no love for them either. Strangely, I don't mind the 'Smart money' thing where a modest man makes an astute move, it's the dirty public phase which seems to mess things up for everyone. I blame TV porn programmes for the spate of BTL as well, have been monitoring it for years longer than it takes some amateurs to ponder their purchases. Ok, you may well make a year's salary on one sale under specific market conditions with little effort, but the bigger picture is you face 5 years of having a rapidly unpredictable salary you stoopid porn star suckers. Don't give up the day job, whatever Krusty says on the matter. And you lose opportunity cost in spades as your CV as a "property speculator" with negative equity fails to get you a job for the foreseeable.

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We need more houses to bring prices down, but as prices come down, builders stop building

Answers to resolve the above please

These mySQL databases... tsk... bloody freeware. I mean, it's one thing to cost nowt, but when it suddenly decides to have a flid and roll itself back to spring last year, then it really is time to actually shell out and get a proper DBMS.

*cough*

We don't need more houses to bring prices down at the moment, as the demand half of the supply and demand bit has bought the dust, because the supply bit of the thingy that's needed to enable that demand has bought the dust.

However...

Had housing supply been subject to the same level of regulation as the supply of mortgage lending during the boom years, we wouldn't have had the boom years.

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That is a conundrum, but not as big as government's 2 policy planks (and I didn't mean GB and AD) of having affordable housing while keeping prices high for everyone else.

No conundrum, if we needed more housing for people to live in, then we'd have lots of people living in tents, shanty towns or on the streets. Also rents would have risen in line with, or even faster than house prices.

We have had a shortgage of houses for people to buy. The mismatch has been between the number desiring to buy and the number of houses available to buy.

It is true that many houses sit empty, and many people desire a lovely house. The same situation applies to ferrari cars, always lots for sale, always lots of people wanting to buy.

A big change is coming /has come, people have been buying as a speculation, enabled by easy credit. They've been becoming BTL landlords, and that has taken away supply of houses, and driven up prices. Those people are now losing money, and the easy credit is gone.

Prices will drop, demand for second homes and BTL investments will vanish, and people will magically find there are enough houses to go around. However, poorer people will still have to live in the less attractive housing, with only the rich getting the lovely houses. The same situation will apply to cars, only the rich will get the ferrari.

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If the money supply is increasing faster than the housing supply people will want to own housing. If the housing supply is increasing faster than the money supply people will want to own money.

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Here's another conundrum for you. We are wasting a lot of food which may suggest that supply is actually in excess of what is required, but food prices are rising due to demand outstripping supply, so we need to grow more food -how can this be?

Answers on a postcard to:

Mr G Brown PM

10 Downing Street

London

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  • 395 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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