They're learning.....

HAMISH_MCTAVISH

KPMG analyst on BBC news just now.

Construction starts drop 14%, residential housing construction starts predicted to be at an all time record low over the next year with funding cut off for Local Authorities and changes to planning (Nimby Charter).

Supply to dry up sooner rather than later....

And we all know what the result was last time that happened.

1984ReturnsForReal_2

Ever wondered why its going to be at an all time low Hamish?

Ever stopped to think?


Didnt think so.................

Graham_Devon

You'd better hope and pray that lack of construction alone can beat interest rate rises, reposessions, low wage growth, inflation higher than wages, tax rises and all out austerity.

ruggedtoast

HAMISH_MCTAVISH wrote: »

KPMG analyst on BBC news just now.

Construction starts drop 14%, residential housing construction starts predicted to be at an all time record low over the next year with funding cut off for Local Authorities and changes to planning (Nimby Charter).

Supply to dry up sooner rather than later....

And we all know what the result was last time that happened.

I think its fairly clear the Tories have no more intention of supplying affordable housing than Labour did.

Apparently some developers are planning legal action as builds they were relying on have now effectively been scuppered.

Whether they can continue to buck the market is another matter though.

I also suspect that at some point, pressure from residential developers to be allowed to develop, and from potential homeowners to have somewhere to live, will come to bear and start new projects.

Also I suspect immigration is going to drop a fair bit.

1984ReturnsForReal_2

ruggedtoast wrote: »

I think its fairly clear the Tories have no more intention of supplying affordable housing than Labour did.

Apparently some developers are planning legal action as builds they were relying on have now effectively been scuppered.

Whether they can continue to buck the market is another matter though.

I also suspect that at some point, pressure from residential developers to be allowed to develop, and from potential homeowners to have somewhere to live, will come to bear and start new projects.

Also I suspect immigration is going to drop a fair bit.

I think you will find a vast number of projects are simply on hold indefinitely because the developers know they will not be making any money off them........

ILW

1984ReturnsForReal wrote: »

I think you will find a vast number of projects are simply on hold indefinitely because the developers know they will not be making any money off them........

That is where the government could do a pretty nifty thing. A very large tax on any land with building permission that is not actually being developed. Win Win situation, they either get more houses or more tax.

ruggedtoast

1984ReturnsForReal wrote: »

I think you will find a vast number of projects are simply on hold indefinitely because the developers know they will not be making any money off them........

Really? Trying to get planning permission in the UK is an absolute nightmare. The place I work for, despite owning large amounts of land, much of which is undeveloped, and desperately needing new development, has found it completely impossible to get planning permission for anything new.

In my locality (staunchly tory) , desperately short of housing, most building projects have been crushed by nimby opposition. The last one, that was going to be on its own somewhere was vetoed as nimbys who lived 5 miles away were worried it would increase traffic near them.

Whats the cost price of building some starter homes in the South East, peanuts I should imagine. Even if you sold them at 2004 prices, which you would in a morning I would think, you'd make a lot.

stonethrower

1984ReturnsForReal wrote: »

I think you will find a vast number of projects are simply on hold indefinitely because the developers know they will not be making any money off them........[/QUOTE



I think you are nearly right here its not that they wont be making money of them its that they want to make more.

1984ReturnsForReal_2

stonethrower wrote:

I think you are nearly right here its not that they wont be making money of them its that they want to make more.

They want margins at the appropriate level.

They are !!!!ed off that the Government has cut its spending on guaranteed margins for healthy bonus. As the Government was the only organisation giving builders guaranteed profit with NO risk....

& now they won't even gamble on developing their own because they suspect they know whats coming....

IE large volumes of their own houses they can't shift & that are dropping in price....

That is it........ Simples........

IveSeenTheLight

ruggedtoast wrote: »

Also I suspect immigration is going to drop a fair bit.

It's already dropping a fair bit.
Problem is that emigration is dropping more resulting in a net increase in migration.

http://www.statistics.gov.uk/pdfdir/mig0810.pdf

http://www.statistics.gov.uk/pdfdir/mignr0510.pdf

abaxas

For one I'm looking forward to this 'nimby charter'.

Find yourself a village with 100 people living there. Buy house, convert to HMO. Get 300 people to technically live there.

Planning issues are now resolved due to democracy. Build what you like.