Shortfall of 1m homes by 2010 could send prices soaring when recovery comes, says Pre

dgl1001

NHMB: Shortfall of 1m homes by 2010 could send prices soaring when recovery comes
The underlying shortage of homes in England could reach "dangerously high" levels of more than 1 million in less than two years, according to David Pretty CBE, Chairman of the New Homes Marketing Board. His concerns were covered in articles across the national, regional and trade media.
While the property market is likely to remain depressed for some time, it will in due course gradually improve when more mortgage funding becomes available. This pent-up demand will then be released into a market unable to satisfy the nation's housing needs, says Mr Pretty, potentially sending prices surging back upwards:
"There is a very real possibility that property prices, which have fallen 15% or more, could rise back to 2007 levels within five years. These sort of pressures invariably happen to any market when demand far outstrips available supply.
"Even before the current recession, national housing production was well below previous decades. Today, we are in a far more difficult situation. The reality is that we are forming households at the rate of around 230,000 each and every year - that is the level we need to meet. But we haven't built in anywhere near those quantities for many years, so we now have a serious backlog which continues to build up.
"Back in 2004 the estimated shortage was around 450,000 homes. As we have only been building, at best, an average of around 160,000 per year in the last decade - a figure which is likely to collapse this year and next to around 75,000 a year - the arithmetic is stark: by 2010, pent-up demand for homes to buy, to rent and for social housing could well be over 1 million, and that is dangerously high.":rotfl::T

chewmylegoff

dgl1001 wrote: »

NHMB: Shortfall of 1m homes by 2010 could send prices soaring when recovery comes
The underlying shortage of homes in England could reach "dangerously high" levels of more than 1 million in less than two years, according to David Pretty CBE, Chairman of the New Homes Marketing Board. His concerns were covered in articles across the national, regional and trade media.
While the property market is likely to remain depressed for some time, it will in due course gradually improve when more mortgage funding becomes available. This pent-up demand will then be released into a market unable to satisfy the nation's housing needs, says Mr Pretty, potentially sending prices surging back upwards:
"There is a very real possibility that property prices, which have fallen 15% or more, could rise back to 2007 levels within five years. These sort of pressures invariably happen to any market when demand far outstrips available supply.
"Even before the current recession, national housing production was well below previous decades. Today, we are in a far more difficult situation. The reality is that we are forming households at the rate of around 230,000 each and every year - that is the level we need to meet. But we haven't built in anywhere near those quantities for many years, so we now have a serious backlog which continues to build up.
"Back in 2004 the estimated shortage was around 450,000 homes. As we have only been building, at best, an average of around 160,000 per year in the last decade - a figure which is likely to collapse this year and next to around 75,000 a year - the arithmetic is stark: by 2010, pent-up demand for homes to buy, to rent and for social housing could well be over 1 million, and that is dangerously high.":rotfl::T

i stopped reading at the point highlighted above.

baby_boomer

dgl1001 wrote: »

Chairman of the New Homes Marketing Board

This is the most important part of your post

BenL

baby_boomer wrote: »

This is the most important part of your post

I love it!

fatpig_2

dgl1001 wrote: »

NHMB: Shortfall of 1m homes by 2010 could send prices soaring when recovery comes
The underlying shortage of homes in England could reach "dangerously high" levels of more than 1 million in less than two years, according to David Pretty CBE, Chairman of the New Homes Marketing Board. His concerns were covered in articles across the national, regional and trade media.
While the property market is likely to remain depressed for some time, it will in due course gradually improve when more mortgage funding becomes available. This pent-up demand will then be released into a market unable to satisfy the nation's housing needs, says Mr Pretty, potentially sending prices surging back upwards:
"There is a very real possibility that property prices, which have fallen 15% or more, could rise back to 2007 levels within five years. These sort of pressures invariably happen to any market when demand far outstrips available supply.
"Even before the current recession, national housing production was well below previous decades. Today, we are in a far more difficult situation. The reality is that we are forming households at the rate of around 230,000 each and every year - that is the level we need to meet. But we haven't built in anywhere near those quantities for many years, so we now have a serious backlog which continues to build up.
"Back in 2004 the estimated shortage was around 450,000 homes. As we have only been building, at best, an average of around 160,000 per year in the last decade - a figure which is likely to collapse this year and next to around 75,000 a year - the arithmetic is stark: by 2010, pent-up demand for homes to buy, to rent and for social housing could well be over 1 million, and that is dangerously high.":rotfl::T

Those jokers are like a broken record. They should be putting their money where their mouthes are and building as many homes as they can now then and then they'll be able to cash in 2010.

cocktail

there is an element of truth in the statement though.
its a different matter that people agree or disagree based on what they like to hear.

stevetodd

cocktail wrote: »

there is an element of truth in the statement though.
quote]

You mean it was 'based on a true story'

adr0ck

fatpig wrote: »

Those jokers are like a broken record. They should be putting their money where their mouthes are and building as many homes as they can now then and then they'll be able to cash in 2010.

are you providing the finance for them to do so?

if not can you advise where they will get the finance to build them?

or are you (to use your language) a joker?

cocktail

no, i meant the demand and supply situation.

lostinrates

cocktail wrote: »

no, i meant the demand and supply situation.

In our parish council area, of three related hamlets/villages only about 12 of the households are under 35 (including us in this, although its my parents home, and they are pension age) A conservative guess is that half are 60+. It would be uncharitable thing to guess the age after that and I'd rather not think about which of my neighbours might make housing available soon, but the cold winter made me worry for more than a few.

While I respect this is not representative of many areas we are an aging population.

tartanterra

So the "New Homes Marketing Board" reckons we will soon need to market new homes?:rolleyes:
Not really news is it?:cool: