Newsnight: Housing shortage the biggest social justice crisis of our times

Graham_Devon

wotsthat wrote: »

So because he's a boomer his concerns can't be genuine? I take it all boomers must be against and all post-boomers for - nice and simple.

Well, yer, it is nice and simple, because you've just made it all up again. You are very good at that!

IveSeenTheLight

Graham_Devon wrote: »

What's more, it's untrue. One of the largest builders, Persimmon Homes had a profit of 13% average per build. Taylor Wimpey's is 11.4%.

If true, that's not a great margin.
I guess if true, it would be hard for you to argue that the prices these companies sell their properties for is too high.

PaulF81

HAMISH_MCTAVISH wrote: »

The profit margins of the major builders are already in single digit percentages.

How much less profit do you want them to make?

Take build costs, add land costs, and then add the council bribes for new schools, roads, etc they have to pay, and it ain't cheap to build a house.

The major reason for a lack of building is a lack of both mortgage lending and development finance.

Get rid of the local authority and housing association requirements and it will become more affordable for decent, hard working middle class thrivers.
As commented on your other thread hamish, the minute lending for housing gets excessive, the BOE are going to slap major limits on lending. The bonus of this will be that it will keep rates lower for much longer.

Graham_Devon

IveSeenTheLight wrote: »

If true, that's not a great margin.
I guess if true, it would be hard for you to argue that the prices these companies sell their properties for is too high.

Why isn't is a great margin? Comparable to what?

wotsthat

Graham_Devon wrote: »

Well, yer, it is nice and simple, because you've just made it all up again. You are very good at that!

So him being a boomer was irrelevant I guess - you may as well have said a tall bloke in a field was objecting.

Graham_Devon

wotsthat wrote: »

So him being a boomer was irrelevant I guess - you may as well have said a tall bloke in a field was objecting.

If it's irrelevant, why are you trying so hard to take the focus away?

ruggedtoast

HAMISH_MCTAVISH wrote: »

Rubbish.

It costs upwards of £1000 per square metre to build a house these days, and that does not include the land, infrastructure or council bribes for schools, roads, etc.

Poppycock. You have made all this up.

mrginge

Just nationalise the house builders who own all the land.

Sorted.

wotsthat

Graham_Devon wrote: »

If it's irrelevant, why are you trying so hard to take the focus away?

Not that hard - just pointing out that being born post 1966 doesn't have to be considered a disability.

Graham_Devon wrote: »

Why isn't is a great margin? Comparable to what?

Welcome to hand-wringers UK. Not willing to risk your own capital but happy enough to decide acceptable returns for those that will.

Shareholders will want to see an improvement in product margin given the capital employed. I don't know if 2012 figures are out yet but between 2007 & 2011 (inclusive) Taylor Wimpey lost £2.8bn so clearly not the moneyspinner you think.

The share price has done pretty well in 2012 - it's not the margin! The UK housing market is much more stable than it has been - an environment much more friendly to planning and investing capital. Long may it continue - price crashes and margin restrictions will only make any housing shortage more severe.

IveSeenTheLight

Graham_Devon wrote: »

Why isn't is a great margin? Comparable to what?

I'm not saying their bad, but I don't believe they are great margins
You stated two of these companies showed a 11.4% - 13% profit.
We trade intercompany areound that figure.
There are forum members in here that reported to have made 20%+ in their share dealings this year.

Imagine sitting in the Dragon's Den with a business that will provide 11.4% - 13% profit per unit
http://www.theopaphitis.com/theo-dragons-den.html

While countless entrepreneurs have seen their ideas ridiculed, and other ‘successful’ pitches have faded into insignificance, the Westwoods converted £100,000 of investment from Deborah Meaden and me into a 50% profit margin in just two years!

http://www.smarta.com/blog/2012/9/dragons%E2%80%99-den-review-a-60000-investment-in-kids%E2%80%99-backpacks-yuu-got-it

Yuu bags make a 43% profit margin

That said, to increase profits in the current subdued property market is well done.

I note their house prices increased, so this should mean that their suppliers were not affected (reducing costs)to achieve those results.