Nationwide Oct: +1.0% MoM +5.8% YoY

HAMISH_MCTAVISH

ILW wrote: »

The argument may be that something as critical as house should be controlled in some way. Either on the demand or supply side.

We need to build more houses.

Until we do that, the market will ration the shortage through price.

That seems a better way to me than the obvious alternatives.

-Waiting lists - look at the 35 year waits for council houses in some areas for a clue as to why that would be a bad idea.

-Lottery- Says it all really.

-Reducing availability of lending - Just tried that. A dismal failure. Dramatically worsened the shortage and caused rents to soar to record highs instead.

-Liberalising planning. - Already happened. But builders won't build what they can't sell, so with mortgage rationing in place it did nothing.

At least with price rises, you get a supply response..... Building up markedly on last year already, now that mortgage rationing is ending.

And the only time we came within spitting distance of building enough homes in the last decade was 2006/2007.

When lending and prices were much higher than today.

Just 40K a year short, versus 100K plus a year short since then.