Only increased building can solve prices....

mayonnaise

the_flying_pig wrote: »

What is HTB in a supply/demand sense?

HTB increases demand. It pushes up prices & as a byproduct the amount of houses built & sold.

Definitely not the case for HTB1, quite the contrary.

New-build property inflation has slowed as a result of the house-building boost provided by the Help to Buy equity loan scheme, says the Mortgage Advice Bureau.

Annual price inflation for new-builds fell from 4 per cent in the twelve months to January 2013 to 2 per cent in the year to January this year

In the North West and East Midlands regions, prices for new-builds have actually fallen by one per cent, while Yorkshire has seen zero per cent inflation for new-builds in the year to January 2014.

http://www.mortgagestrategy.co.uk/news-and-features/sectors/products/products-news/help-to-buy-1-slows-new-build-price-inflation/2008498.article

CLAPTON

Bantex wrote: »

I think it is Costain that has announced that their strategy is to build fewer houses but with higher margins over the next few years.

yes indeed, we need houses of all shapes and sizes


one company specialising in larger houses or a company specialising in retirement housing or a company specialising in smaller houses or one specialising in flats is healthy.


nothing wrong with companies crossing the whole range either

HAMISH_MCTAVISH

mayonnaise wrote: »

Definitely not the case for HTB1, quite the contrary.

:rotfl:

Damn those pesky facts.....

GingerBob_3

How come if there's a shortage of houses the estate agents are stuffed full 'em?

adr0ck

There is still little appetite by the banks to lend to small housebuilders.

There's probably only about 3 or 4 banks willing to do so.

Until small to medium sized housebuilders can get finance you are not going to see much of an uplift in housebuilding.

Carl31

As said, private building firms are not going to build more when its going to push down prices, so they have the market over a barrell

What they need is something that gives potential buyers or occupiers an alternative, a bit of competition maybe like when there was the option of council housing. We might see an improvement in new build quality then too

CLAPTON

Carl31 wrote: »

As said, private building firms are not going to build more when its going to push down prices, so they have the market over a barrell

but private house building is increasing.................

BobQ

Maybe another solution is to progressively limit the loan to value ratio for those letting houses till it fell to say 20%. Many landlords would then sell the houses, increasing supply and reducing prices?

adr0ck

Carl31 wrote: »

As said, private building firms are not going to build more when its going to push down prices, so they have the market over a barrell

What they need is something that gives potential buyers or occupiers an alternative, a bit of competition maybe like when there was the option of council housing. We might see an improvement in new build quality then too

We have affordable housing - which a large part of is paid for by private housebuilders. These same housebuilders also pay towards new infrastructure including roads, schools, parks etc.

One way to reduce housing costs would be to remove all the added costs that housebuilders face now that they didn't face years ago.

Someone smarter than me can probably come up with a formula that works out how much housebuilders should contribute to get the most homes built.

Similar to how much the highest rate of tax should be.

CLAPTON

BobQ wrote: »

Maybe another solution is to progressively limit the loan to value ratio for those letting houses till it fell to say 20%. Many landlords would then sell the houses, increasing supply and reducing prices?

how would that cause a single new house to be built?


where would the displaced tenants then live?


what effect would the increased demand for rental properties have on rents?