BOE Governor "housing has deep problems"

Bantex_2

Generali wrote: »

My uncle lived in a council house and it wad in a terrible state of disrepair until he bought it and fixed it.

It used to drive him mad. He was an incredibly competent carpenter but wasn't allowed to touch it.

My grandparents lived in council places for about the last 25 years of their lives and were forever going on about haw much better they were than the private rentals they had had before.

michaels

CLAPTON wrote: »

makes no sense: builders make a fortune for not building?

Yes - on building they probably make 'profit' of about 15% of their costs (land plus materials plus labour plus design etc).

However with hpi and available land being the biggest variable an increase in house prices of 10% can make a building plot increase in value by 20% - thus hold on to the plot for a year and make 20% profit or build a house on it and make 15%....

Are there lots of new entrants wanting to build and make the 15%? Well actually no because they can't get planning permission on new sites and the existing sites are making the building companies more money as investments than they would as houses.

Graham_Devon

michaels wrote: »

Yes - on building they probably make 'profit' of about 15% of their costs (land plus materials plus labour plus design etc).

However with hpi and available land being the biggest variable an increase in house prices of 10% can make a building plot increase in value by 20% - thus hold on to the plot for a year and make 20% profit or build a house on it and make 15%....

Are there lots of new entrants wanting to build and make the 15%? Well actually no because they can't get planning permission on new sites and the existing sites are making the building companies more money as investments than they would as houses.

This is why so many, politicians included, have asked to look at land taxes. If they buy it for building, it has to be built on in say 2 years, otherwise it's taxed.

Should sort out the issues fairly quickly, though some say they would just put the prices of the houses up to compensate. Can't really see how that would work though.... otherwise, they would be jacking up their prices anyway.

moneyinmypocket

What are the HPC chain gang saying about this news? Bet they are all going wild

CLAPTON

michaels wrote: »

Yes - on building they probably make 'profit' of about 15% of their costs (land plus materials plus labour plus design etc).

However with hpi and available land being the biggest variable an increase in house prices of 10% can make a building plot increase in value by 20% - thus hold on to the plot for a year and make 20% profit or build a house on it and make 15%....

Are there lots of new entrants wanting to build and make the 15%? Well actually no because they can't get planning permission on new sites and the existing sites are making the building companies more money as investments than they would as houses.

most of the national building companies are PLCs that have shareholders that expect dividends.

dividends need cash and not simply increase in asset values.

on your theory where-ever are house builders increasing their building - up about 70% this year?

why can't new entrants get planning permission?
is this a conspiracy between the big six and every single council in the UK?

is there a list of people who have mortgages (AIP) and deposits but can't buy a new build because of the cartel?
how long is the waiting list?

moneyinmypocket

I can't see the number of houses that are needed to be built being built. I think things will just stay as they are

cells

moneyinmypocket wrote: »

I can't see the number of houses that are needed to be built being built. I think things will just stay as they are

No

They will and are getting worse

in the 2000s far too few homes were built. The council's only allowed building rates that were similar to the two decades prior but the population went up a lot more than the 1980s or 1990s and a shortage was created in the 2000s

since then in the first half if the 2010s not only has new build rates crashed and stayed down but the population is growing even more rapidly.

By 2020 the shorrgage will be much much much worse than it was in 2010

TickersPlaysPop

If help to buy continues the gov will have a vested interest to keep house prices from stalling and falling ?

The gov is appeasing those that vote I.e. The older generation, by allowing pension money to go into buy to let, strengthening the housing market by building HS2 rather than invest in house building, those with money in property are very happy to see slow building rates.

ukcarper

TickersPlaysPop wrote: »

If help to buy continues the gov will have a vested interest to keep house prices from stalling and falling ?

The gov is appeasing those that vote I.e. The older generation, by allowing pension money to go into buy to let, strengthening the housing market by building HS2 rather than invest in house building, those with money in property are very happy to see slow building rates.

How many of the older generation have sufficient money in there pension fund to buy a house. The few that do will probably vote Tory anyway.

CLAPTON

TickersPlaysPop wrote: »

If help to buy continues the gov will have a vested interest to keep house prices from stalling and falling ?

The gov is appeasing those that vote I.e. The older generation, by allowing pension money to go into buy to let, strengthening the housing market by building HS2 rather than invest in house building, those with money in property are very happy to see slow building rates.

why do you despise the under 50/60? and assume they are too stupid/lazy to vote?
maybe they just don't agree with your views?