Housing Shortage Worsening - Another million homes needed in just 10 years....

CLAPTON

daveyjp wrote: »

Just seen an architect friend. He doesn't expect housebuilders to suddenly increase output to any more than 2-3 completions a month per site, which it has been for years.

The market is dominated by a few players, they are making excellent money, profits are good, market is rising.

Why put more stock onto the market? It needs more capital employed, it needs more labour, it uses land banks which need replacing incurring acquisition and planning costs and it doesn't give developers time to recoup all up front costs from higher prices later in the development phase.

so basically like many other businesses

what about the small builders who want to grow : what a fantastic opportunity to make a fortune

cells

daveyjp wrote: »

Just seen an architect friend. He doesn't expect housebuilders to suddenly increase output to any more than 2-3 completions a month per site, which it has been for years.

The market is dominated by a few players, they are making excellent money, profits are good, market is rising.

Why put more stock onto the market? It needs more capital employed, it needs more labour, it uses land banks which need replacing incurring acquisition and planning costs and it doesn't give developers time to recoup all up front costs from higher prices later in the development phase.

but that is clearly silly nonsense because England is not one big uniform market it is 11 regional markets and over 350 distinct council areas.

If you break it down to councils what you find is that the councils that issue more stamps see higher build rates. Its as simple as that.

mortgages banks regulations materials design etc are all the same and wages are quite uniform. what explains the different build rates is the stamps given out that is the only varying variable in the councils (also price but that seems to have no link in England suggesting everywhere has a shortage and only the quotas are dictating what gets built not the price)