Collapse in new house building.

magpiecottage

stator wrote: »

Time to bring back council lead building.

Somebody will pinch the lead!

CLAPTON

stator wrote: »

How can you give permission without an application?

The point about the land is that they want too much money, not that they aren't willing to sell. So if the councils were allowed to purchase the land at it's current use value, ie farm land or brownfield land, then it would be house building gallore. If councils controlled the master plan for all new large housing estates they could also design them sensibly to integrate transport and local services, rather than the current approach which leads to huge estates only connected by roads and no bus services because they all ouse the 'tree root' cul-de-sac layout with no through roads.

Anyone can apply for planning permission whether they own the land or not.
However the more substantial point is that in many areas the council's plans identifies only a very limited amount of land so ensuring it's market price is high.
However, I do agree that society ought to benefit from land price inflation that accrues from planning permission being given.

In practice, large estates aren't built without consideration of local infrastructure and councils have adequate power to amend unsuitable plans. Lack of through roads is often a council requirement, as is lack of adequate parking places.

Graham_Devon

Generali wrote: »

I guess it's proving HAMISH right: the mortgage market needs to be fixed for the housing market to be fixed.

So what do we do to fix it?

We've already had first buy, helping hand, help to buy, help to buy 2, funding for lending. We've now got the latest wheeze....withdrawing pensions!

What more can we do to "fix" the mortgage market?

My point in the OP was that it's been stated over and over that if we want more houses built, we have to accept HPI as house building apparently "always" increases when HPI increases.

This appears now not to be the case.

As for planning permission, I'm nto sure this really answers the issue either. As Hamish has said, builders won't build what they can't sell. So even if they have planning permission (remember theres permission for 300,000 plots granted) they aint gonna build it if they can't sell it.

The issue therefore is why can't they sell them? Normally this hinges around the fundementals of price, but price has not been mentioned once on the entire thread.

Is it of any coincidence that as house prices have risen by 10% over the year, mortgage approvals and therefore building has fallen back? People cannot simply pull thousands of pounds more out of their ears at te drop of a hat. Affordability is declining. The only way we can sort this by "fixing the mortgage market" is to lend on riskier and riskier terms.

wymondham

so with this news and an election rumoured to be coming up (!!) I wonder which direction the next scheme to fix it all will take?


I think it will be 'vote conservative' and you can do like the uni people - pay back your mortgage once you start earning over 25k a year!

Thrugelmir

There were only 29,800 new housing starts in England in the final quarter of 2014, the Communities Department reported.

The weather perhaps. Maybe developers were finishing properties off.

Perhaps the construction industry shut down for an Xmas break as well. :snow_laug

TickersPlaysPop

I keep reading here "supply and demand"

If demand comprises landlord fighting over properties amongst prospective owner occupiers... is that really simple "supply and demand"?

We need to consider the composition of the demand for properties....

When stocks and shares were an unattractive investment, saving account Internet low .... those with money moved to property to get a return for their money...

In my opinion this is false demand, it inflated the market.... and now after a period of higher property inflation vs wages there is even more capacity for rental property becase people struggle to buy the out of reach inflated properties.

The government are still promoting and supporting growth in the rental sector... appeasing the wealthy and old in times where property is the only safe investment.

wotsthat

Graham_Devon wrote: »

So what do we do to fix it?

We've already had first buy, helping hand, help to buy, help to buy 2, funding for lending. We've now got the latest wheeze....withdrawing pensions!

What more can we do to "fix" the mortgage market?

My point in the OP was that it's been stated over and over that if we want more houses built, we have to accept HPI as house building apparently "always" increases when HPI increases.

This appears now not to be the case.

As for planning permission, I'm nto sure this really answers the issue either. As Hamish has said, builders won't build what they can't sell. So even if they have planning permission (remember theres permission for 300,000 plots granted) they aint gonna build it if they can't sell it.

The issue therefore is why can't they sell them? Normally this hinges around the fundementals of price, but price has not been mentioned once on the entire thread.

Is it of any coincidence that as house prices have risen by 10% over the year, mortgage approvals and therefore building has fallen back? People cannot simply pull thousands of pounds more out of their ears at te drop of a hat. Affordability is declining. The only way we can sort this by "fixing the mortgage market" is to lend on riskier and riskier terms.

So your head spins when contemplating risky lending (not that you or I were so worried we declined 95% mortgages) and you're not convinced planning has much to do with anything.

Its music to the ears of the already wealthy.

TickersPlaysPop

And the quality of how people live decends and decends.... hip hip.... hurray

Less space, worse locations, staying at home with mum n dad for longer, more poeple per property...

Well done bankers for inflating our houses and then running off with all the money .... well done for government for allowing them to do it.... well done for government for allowing those that have benefitted from this fraud to not pay tax

Graham_Devon

wotsthat wrote: »

So your head spins when contemplating risky lending

Not really, just stating the only" solution I can see if it's the case that the mortgage market is at fault. I probably shouldn;t need to remind you what happened the last time that solution was used.

you're not convinced planning has much to do with anything

Never said or implied that. I stated that I'm not sure planning permission answers the questions. Implying I suggested planning permission doesn't have much to do with anything twists what I put across somewhat.

CLAPTON

TickersPlaysPop wrote: »

I keep reading here "supply and demand"

If demand comprises landlord fighting over properties amongst prospective owner occupiers... is that really simple "supply and demand"?

We need to consider the composition of the demand for properties....

When stocks and shares were an unattractive investment, saving account Internet low .... those with money moved to property to get a return for their money...

In my opinion this is false demand, it inflated the market.... and now after a period of higher property inflation vs wages there is even more capacity for rental property becase people struggle to buy the out of reach inflated properties.

The government are still promoting and supporting growth in the rental sector... appeasing the wealthy and old in times where property is the only safe investment.

where do you think the 500,000 immigrates that arrive each year should live: buy houses on arrival?
or the 800,000 young people who leave home for the first time each year: should they immediately buy too?

or do you favour the state providing subsidised housing instead?