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Debate House Prices
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Why can't the UK build 240,000 houses a year?
Comments
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what exactly is the difference between selling houses and selling bread?
there are probably fewer large bread makers than large builders.
naturally a company will wish to charge as high a price as possible (i.e. that will sell) for any product
however if the profits are high due to high prices, then new entrant will be willing to sell for lower prices in exchange for higher volumes
low prices and high volumes often make more profit that high prices and lower sales
no different to any other market except of course, the supply of land and planning permission is controlled artificially by the state.
Meanwhile, back in the real world, things don't always operate the way they seem to do in the textbooks.
If any of these theories were correct then it would already be happening wouldn't it? FTSE housebuilders would be quaking in their steel toecaps at every local builder selling for less and upsetting the market.
If it's that simple then why don't you spend a few years planning and managing a development and then flog all your hard work for half it's value?0 -
Blacklight wrote: »Meanwhile, back in the real world, things don't always operate the way they seem to do in the textbooks.
If any of these theories were correct then it would already be happening wouldn't it? FTSE housebuilders would be quaking in their steel toecaps at every local builder selling for less and upsetting the market.
If it's that simple then why don't you spend a few years planning and managing a development and then flog all your hard work for half it's value?
are you saying that it isn't possible to sell more at a lower price and make a bigger profit?
in the real world it happens every day
the reason that the big boys aren't quaking in their boots is because of our mad government controlled planning system.
why don't the small boys build at, say 10% below the massive hugely profitable big boys and still made riches beyond their wildest dreams.
presumably the reason that France and German (etc) builders can build at the appropriate rate is because they are all socially responsible, profit avoiding philanthropists or maybe they don't live in the real world.EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
After watching the 'super rich and us' on BBC iplayer you could easily conclude that big finance probably preferred to see their energy spent financing pound shops, pawn shops and gambling shops for the bottom of the new hour glass society and glass Ivory towers and elite goods for the Super rich at the top - investing for the 'squeezed middle' which was planned and foreseen to be threadbare before not too long was never a part of the agenda.
Why build a village for people you are betting won't exist before too long. Especially when that new village might blight your view from your own house and might lower the price of your current property portfolio.
When it comes to property for some, far easier to make money by doing absolutely nothing whilst legistlating to ensure almost nothing happens by anyone else.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
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Do we really need to build that many houses?
Even in London, rents are barely tracking inflation. There are very few people living on the streets.
Is there also a chance the population will start to drop? Birth rates in Europe very low? Boomer generation beginning to reduce?
No, and if we did there would be a house price crash of BIBLICAL proportions, so rest assured, IT IS NEVER GOING TO HAPPEN! Don`t know why people on here and HPC keep talking about it. As you say there are very few people living on the streets, and most of them are there by choice or due to mental health/substance abuse issues.0 -
EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
This country needs to reduce its population by about one third. Not overnight, obviously, but as an eventual goal to ensure resources and a decent standard of living for everyone.
Councils need to replace the council houses they've sold.
Brownfield sites can be used for some new housing.
If a pensioner wants to remain in the four-bed house they own, let them. They pay for it. They might need to have overnight carers to stay or accommodate boomerang children who'd otherwise turn to the council for housing. The house will return to the market when it is sold.
We can't just keep concreting over everything that has a blade of grass on it.0 -
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EU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
You are looking at the wrong end of the equation. Labour and material costs aren't much different around the Country, what is different is the price you can sell a new house for.
If the end value of the house doesn't cover ALL costs incurred in developing it it won't get built.
Why is it that the end 'cost' in the SE is higher than the end cost in say Scotland if as you say the materials and labour costs are about the same?
Here is a hint, look at build rates oer capita for the regions of the UK. They are not all that much different. Eg Scotland builds abiut the same as the SE builds about the same as the Midlands builds about the same as the East...etc
The price is vastly different yet output is similar
the reason is clear the market is operating not on supply and demand cost and profit but on quotas.
Also its available in black and white proof on each and every council website. Look up the local plan for your council they set out what they think is needed and issue quotas to match. Its not in itself a bad system france does the same and so does Germany and turkey all operate planning permission. The only difference us the UK planners en mass have totally and utterly underestimated the quotas needed over the last 10-15 years and its also clear they are making the same mistake again going out 10-20 years
I think the reason is that our planners like most others in society fail basic mathematics and reasoning. They probably thought ...hmmmm the population will grow by 300,000 a year and the average household size is 2.4 so 400,000 / 2.4 = 170k quota per year and thats probably what they have been issuing
only it fails to address the need for a falling occupancy rate which is critical and it fails to understand the fact that not all planning stamps will proceed to development. Take those into account and the uk needs to have a quota of 500k stamps a year so 400k homes can be build annually....which is v.close to what happens in france0
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