House Prices: New Record High - Nationwide +1% MoM +5.3%YoY

CLAPTON

marathonic wrote: »

If there really is a housing shortage, then prices must rise until builders simply cannot ignore the potential profits any more.

My question though is - where are all these people living that need the 1000's of houses you suggest we so desperately need? And by this, I mean people that could afford to buy the house if it was built - at current prices or even, for example, prices 20% below today.

Why would houses be so expensive if there wasn't a shortage?
clearly the price of housing (at least in London and the SE) is vastly more than the building cost : the rest is scarcity value (which expresses it's in the high price of land.)

The people who will do the buying are the people currently flat sharing who desire their own place, people in one bed flats that want a spare room or want to start a family, people in flats who want a garden, people in two bed places who want more than one child etc. etc
and of course 500,000 immigrants arrive each year with only 200-300,000 leaving.

no shortage of demand.

cells

Thrugelmir wrote: »

In the post GFC era. The construction industry shed some 200,000 jobs. There is a shortage of skilled tradesman. Not least bricklayers now. To rebuild a workforce will take some years. In addition there's a shortage of production facilities to manufacture materials such as bricks and roof tiles. One brick manufacturer has only just recently used up it's stock piled bricks from 2008. As a consequence is investing again in ramping up production. Factories take time to construct and make operational.

If there isn't the climate post election for business to invest for the long term and training is given the neccessary focus to. Then the situation won't improve noticably. Governments can only provide the framework.

Post war was a very different era. With ex-serviceman seeking work. A far better equipped generation too. With far better level of skills.

if this were true to any real extent you would find that the builders allocate their work to higher prices area to make most of their staff and materials.

but the reality is that places like London are not building more homes than places like Birmingham (per capita)


in fact this is probably something which is needed to help the problem, more homes built in expensive areas

purch

cells wrote: »

if this were true to any real extent you would find that the builders allocate their work to higher prices area to make most of their staff and materials.

That sounds all well and good in theory, but as we all know House building is not as simple as that.

jacko74

Just think Hamish, you'll be rich beyond your wildest dreams when you sell up and go and live in a tent.

HAMISH_MCTAVISH

jacko74 wrote: »

Just think Hamish, you'll be rich beyond your wildest dreams when you sell up and go and live in a tent.

I'll be selling houses but keeping a house.

No need for tents...

ruggedtoast

They aren't very keen on this news over on the forum hpc.co.uk.

Landofwood

ruggedtoast wrote: »

They aren't very keen on this news over on the forum hpc.co.uk.

That web site doesn't exist. You mean housepricecrash.co.uk?

ruggedtoast

Landofwood wrote: »

That web site doesn't exist. You mean housepricecrash.co.uk?

Good grief there's another one.

floridaman

Rising house prices are a sign of a healthy economy.

Thrugelmir

floridaman wrote: »

Rising house prices are a sign of a healthy economy.

Not in 2007/08.