Saturday, February 13, 2010

Consequences

Redrow chief warns on housing shortage

The chairman of one of Britain’s biggest housebuilders has called on the government to address the shortage of homes in the country or face the prospect of social unrest. “There is massive pent up demand for home ownership in this country and something has to be done to solve the housing crisis or it could lead to social unrest,” said Steve Morgan, executive chairman of Redrow

Posted by dill @ 09:56 AM (1995 views)
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16 thoughts on “Consequences

  • Morgan,you’re having a laugh! There’s not enough land because people are hanging onto it? So you get hold of land instead ,what happens.
    You drip feed houses onto the market to keep prices up ,each house with a sizeable mark-up for inflated land value. Loverly money.If there is a shortage in this country it is of lamp-posts to deal with all the rabble that have a vested interest in keeping up an artificial shortage of housing and shackling young workers to an average hundred thousand pound ball and chain for the land beneath their homes,whether bought or rented.

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  • I’d get angry if I didn’t think their land-banks are a sufficient length of rope. No need to invest in lamp-posts.

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  • Just me all the single old folks living in large family homes until their last gasp into all those nice empty new-build apartment blocks and hey presto problem solved.

    Collateral benefits being reduced social costs, reduced energy use, social environment for the oldsters to interact and reduced transport costs for NHS, and decent family homes for renovation and reuse by todays shoebox families.

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  • “The government should be looking at ways to fill the 800,000 or so empty properties in this country” Mr Morgan added (er, no he didn’t).

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  • There is pent up demand from the people who haven’t been able to afford to buy for a decade because they ahve been carefully saving for a sensible profit and refuse to buy over priced houses. Moreover, the demand for houses is increased because of massive BTL portfolios which contributed to the rise in house prices forcing out the non-wealthy first time buyers!

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  • mark wadsworth says:

    Yup, sounds like another job for Land Value Tax Man.

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  • gone-to-colombia says:

    Another opinion from the parallel reality of UK dystopia 2010.

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  • …LVT or how about loosening the laws on squatting, solve the housing ‘shortage’ (because speculation would be inherently more risky),and force the ‘pension plans’ onto the open market….heh presto , a million empty properties suddenly appear.

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  • More like “Please bail out my bankrupt company Mr Prime Minister” – all in the name of social justice of course!

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  • Mr Morgan went on to say that it was the “duty” of everyone who cared about social cohesion to ensure exponential growth in the number of properties built and profits made by Redrow. “Can you imagine anything causing greater disruption to the social fabric of my family than our being unable to buy more than we did last year? To fail to secure every opportunity for us to do so is social vandalism of the worst kind”

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  • I think the shortage is going to continue but the prices continue to collapse. As has been pointed out, as we have persistently run a deficit, then we need to concentrate on exports.
    Like a squirrel who needs to save nuts for winter, we are in the situation of having to pay back nuts when we should be saving them i.e. we arrive at winter without nuts. This maps onto the UK because we need to build houses but we also need to pay back our loans, and irrespective of our housing need, disastrously compounded by collapsing land prices, we don’t have the work force to do both, just dance to our creditors.
    We can’t pay back real goods to honour debt at the same time as making real goods for ourselves. I think we are in the New Labour debt driven no-man land at the moment, and I think probably that when reality becomes clear people will leave.
    Maybe that is just my emergency plan. How much extra would you need to earn abroad before you left? You already have a 25% pay increase over the last two years. Your taxes are going up… etc The UK can’t rely on lacklustre people like me or you blogging away.

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  • 10. stillthinking said… I think we are in the New Labour debt driven no-man land at the moment…

    red herring

    party politics has little if anything to do with the position you find yourself in

    “The UK can’t rely on lacklustre people like me or you blogging away.”

    too true

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  • There is only a shortage because market manipulation has artificially inflated the price of housing.

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  • There is only a shortage because market manipulation has artificially inflated the price of housing.

    There is only a shortage because…..artificially low interest rates encouraged speculation that led to a bubble in asset prices, which has yet to end.

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  • By no mans land, I mean, we are moving over to internal deflation at the same time as the currency falls. We are going to be in a situation where the best wages lie in anything export orientated. House building is internal labour for internal consumption, there won’t be so much money in it. Builders have an exportable skill and will seek out work abroad, remember Auf Wiedersehen Pet, about the landslide of construction workers shifting to Germany during a UK recession. Also you can’t profitably develop against a backdrop of falling land values because of necessity you have to embed your loss in your purchase price. So while you can argue the toss whether we are currently in a shortage or not, we will be in the future.
    But the prices are not going to increase, -if- they had been normally priced then yes they would increase, but they have gone way past affordability and can only tumble. It is not possible for people holding debt in the UK to pay it back. We don’t and will not for some time have a trade balance. Anybody who takes out a mortgage is getting on a sinking boat with too few life boats. Not everybody can get off.
    Our problems in the UK haven’t even started yet. As Clark says, the required cuts will be much worse than anything Thatcher came up with.
    Then everything starts to rip apart (with a happy ending though), prices collapse, but at the -same time as a shortage-. When you read of the low level of transactions it is normally implied that sellers are staying out of the market, as though it is some trade off between sellers and buyers. This just isn’t true, there simply isn’t enough finance to support 2007 level of transactions, but this isn’t connected to a physical shortage of housing. The effects of the shortage such as smaller and smaller units, renting rooms, moving back to parents etc are all underway. They are not supportive of prices.

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  • Has anyone asked why we have a shortage of houses? especially since there is not much of population growth – i.e. number of deaths = number of deaths. It is the influx of people through the uncontrolled immigration. All these people need somewhere to live and the government and councils have taking it upon themselves to make sure they find them somewhere. It is crazy that people who have never done a stroke of work in this country have all these rights. Try going to their countries and see how they’ll look after you!
    At the other end of the scale, those that have money are buying London by the millions because of the low exchange rate.
    That is why prices have not come down as much as expected, by this website.

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