Has osbourne saved FTBs?

cells

daveyjp wrote: »

There is land in England with planning permission which isn't being built on. If the land is now worth more why no houses being built?

The stock of planing permissions is a buffer for an industry that needs work going out a few years. It would be stupid to expect the whole industry to operate with no forward planning and just live day to day.

Surely it makes sense for a big listed builder to have a few years worth of a limited and uncertain stock. How could they operate if they only had a months stock and if they couldn't get new permission within that month they would need to lay off all their staff and contractors. Nor would any bank lend to then if their business plan was.....we have one month worth of work and then we may or may not have anymore but please lend to us even though our future is only one month

Thrugelmir

CLAPTON wrote: »

the sole purpose of working is to consume

With borrowed money though.

CLAPTON

Thrugelmir wrote: »

With borrowed money though.

what has that to do with rebalancing the economy away from consumerism

westernpromise

Owner occupied houses usually have fewer people in them than otherwise identical rented houses. To the extent that houses shift from the rented sector to the owned this will actually reduce the amount of housing available. More people will have to fit into fewer rental properties. If they don't fit, they'll be homeless.

Sapphire

Thrugelmir wrote: »

Without consumerism the UK economy would be in dire straits. There's no indication that rebalancing the economy is working. As the UK's ability to produce things for itself continues to diminish.

Yet the UK is allowing a massive increase in migration – including for people who are coming in from outside the EU and seeking benefits courtesy of taxpayers, despite the increasing lack of jobs/training for the indigenous population, and the awful, obvious strain the population increase is putting on services such as the NHS and housing. It's that and investors – including many foreign ones and even finance companies – that is pushing up property prices so much. What happened to this government's promises to limit migration to the tens of thousands? Why are illegals (who at the least are a huge financial drain on taxpayers) being allowed to stay when they enter the country unlawfully, including from countries where there is no conflict. This insanity must cease, otherwise we will be in deep trouble.

daveyjp

cells wrote: »

The stock of planing permissions is a buffer for an industry that needs work going out a few years. It would be stupid to expect the whole industry to operate with no forward planning and just live day to day.

Surely it makes sense for a big listed builder to have a few years worth of a limited and uncertain stock. How could they operate if they only had a months stock and if they couldn't get new permission within that month they would need to lay off all their staff and contractors. Nor would any bank lend to then if their business plan was.....we have one month worth of work and then we may or may not have anymore but please lend to us even though our future is only one month

Exactly. Planning is not an issue. Developers will bring stock to the market at a rate which suits their business.

kinger101

Thrugelmir wrote: »

Without consumerism the UK economy would be in dire straits. There's no indication that rebalancing the economy is working. As the UK's ability to produce things for itself continues to diminish.

Probably. But I doubt some of it contributes much at all. If I buy something from Amazon for example, it's likely to be a foreign manufactured item, and the manufacturing and retail profit won't remain in the UK. So the sole contribution will be a few minutes of low wages for the order picker, followed by the amount the Yodel guy is paid so sling the package over my garden fence and not leave a card telling me he has done this.

CLAPTON

daveyjp wrote: »

Exactly. Planning is not an issue. Developers will bring stock to the market at a rate which suits their business.

why don't 'small' builders enter the market and make a fortune satisfying the obvious demand, on the back of the high prices enforced by the big boys cartel?

why is farm land in my area about 10-20k an acre but building land over a million an acre?

why is it almost impossible to find land for self build?

Crashy_Time

westernpromise wrote: »

Owner occupied houses usually have fewer people in them than otherwise identical rented houses. To the extent that houses shift from the rented sector to the owned this will actually reduce the amount of housing available. More people will have to fit into fewer rental properties. If they don't fit, they'll be homeless.

Sales of empty second homes will have to take up the slack.

Thrugelmir

CLAPTON wrote: »

what has that to do with rebalancing the economy away from consumerism

Simple really. Is consumerism sustainable in the longer term to keep the economy growing. Is the UK financially stable enough to withstand another recession event yet.