Saturday, July 21, 2007

Providing more building land will not make homes affordable

First time buyers will not enjoy affordable homes due to releasing more land - CPRE

Increasing the supply of land for housing would make little difference to housebuilding rates or house prices, concludes new research commissioned by countryside campaigners, Campaign to Protect Rural England (CPRE). The study published today (Saturday) shortly before the Government's Housing Green Paper tracks house prices, housing completions and housing land supply over periods of ten years or more in a range of localities, including growth areas and areas with high and low house prices. Its recommendations need to be reflected in the future development of Government policy if we are to meet the nation's housing needs while protecting the environment.

Posted by converted lurker @ 08:59 PM (583 views)
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5 thoughts on “Providing more building land will not make homes affordable

  • So the CPRE recommends not increasing land for housing.

    Errm … okay …

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  • The simple truth is the following: let the market forces balance prices by adequatelly taxing real estate so only reasonable amout of properties and land would be empty, make sure there is enough room to increase housing capacity by bulding bigger houses with enough parks and stuff… Keep accurate records about people migration and PLAN PLAN PLAN. That and only that will sort out the housing problems and keep the economy stable & growing.

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  • I think what the study means is that it’s useless to release land unless some underlying things are changed coz most likely some new homes will just be bought by rich BTLers (unless of course the location is bad in which case even FTBs probably won’t buy). They might be saying that instead of releasing land, land and more land – the gov’t should study some other things to bring down house prices.

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  • uncle chris says:

    This is probably correct, a new development called ‘Pentre Bach’ near Wrexham was given permission (I’m told) on the basis that it would provide affordable houses, and yet now it is finished, there doesn’t appear to be any homes available under £130,000 – probably around 8 times the average wage in the area. If the go ahead is given for more fields to be concreted over, I cannot see prices dropping down to £50,000-60,000, which is what is needed. And anyway, I’m sure a much quicker option to increasing the housing stock is to force the sale of all holiday homes – desperate times require desperate measures. I think it is scandalous that some people have 2 or 3 homes when young local families desperately need somewhere to live.

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  • converted lurker says:

    I agree with the CPRE, there is enough supply IMHO and any developments have to be concentrated on where communications are already good, – v.close to major towns and cities to encourage; bike travel, public transport and less waste. We’ve done to death the true reasons house prices have inflated – cheap money & speculation. If the average price of a 2 bed city centre apartment was closer to 100K than 150K then approx. 300K extra units (including those in the pipeline) would be used. Lack of supply argument then disappears particularly if you factor in the unused and vacant property, that only needs on average 13K per unit to bring them up to habitable standards

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