Why are house prices so expensive in the south east

Herzlos

Builders build what they get most profit from. They sell large luxury houses for high prices, they can only sell small starter places for small prices.

Why does it matter that 3-4 million of Londons 8.6 million population are foreign? We're talking about growth capacity and not race here, surely?
It's not as if they all turned up in the last few years to cause a housing boom, many of them have been here for decades.

CLAPTON

Herzlos wrote: »

Builders build what they get most profit from. They sell large luxury houses for high prices, they can only sell small starter places for small prices.

Why does it matter that 3-4 million of Londons 8.6 million population are foreign? We're talking about growth capacity and not race here, surely?
It's not as if they all turned up in the last few years to cause a housing boom, many of them have been here for decades.

As you don't think there is any shortage of housing in London and the SE then there is no point is discussing a housing shortage or high house prices.

CLAPTON

interesting read about new builds

http://www.dailymail.co.uk/news/article-2932571/Detached-housing-makes-comeback-Number-built-higher-height-2007-property-boom-developers-away-flats.html

another read mainly about London
https://www.statslife.org.uk/economics-and-business/2360-too-many-flats-not-enough-houses-the-geography-of-london-s-new-housing

This report notes that flats comprise just over half of London’s accommodation, compared to less than 20% in the rest of the country. A substantial proportion of this has come from the sub-division of larger houses, in addition to the rise in new apartment developments in central London.

Herzlos

CLAPTON wrote: »

As you don't think there is any shortage of housing in London and the SE then there is no point is discussing a housing shortage or high house prices.

No, I'm saying that the problem has nothing to do with foreigners. It's entirely down to poor civic management.

CLAPTON

Herzlos wrote: »

No, I'm saying that the problem has nothing to do with foreigners. It's entirely down to poor civic management.

what you posted was

Herzlos wrote:

We have sufficient houses.

£1 million for a terrace house in London caused by the demand for limited supply.

Herzlos

Yet there are more empty houses than people needing houses across the country. So my point is still valid, I'm just not making the point you think I'm making.

House prices in London are mental, but the problem is not immigrants, our problem is lack of infrastructure and investment. If you cut migration down to zero (1-out-1-in), then you're still going to have mental house prices and shoddy, overpriced public transport, but you're also going to have an increased tax burden for the people that as working.

Getting rid of EU migration (which seems to be your only solution to everything) will solve absolutely nothing beyond the shortest of terms, and introduce all sorts of new problems which you'll go on to blame of foreigners anyway.

CLAPTON

Herzlos wrote: »

Yet there are more empty houses than people needing houses across the country. So my point is still valid, I'm just not making the point you think I'm making.

House prices in London are mental, but the problem is not immigrants, our problem is lack of infrastructure and investment. If you cut migration down to zero (1-out-1-in), then you're still going to have mental house prices and shoddy, overpriced public transport, but you're also going to have an increased tax burden for the people that as working.

the problem is London is the supply /demand balance : basically too many people and not enough houses.

If we stopped immigration, London would probably benefit by 100,000 per year less people comimg in. The current build rate doesn't even cover the INCREASE in London's yearly population whereas we need to be building to make up for the past increase in population and reverse the decline in owner occupation and the size of properties.

We need at least a million additional properties in London at say a cost of £50 billion plus a build time of 10 years due to the mad planning laws. Of course during that 10 year London will have grown by another million or more.
People drive the demand for housing whether Uk born or immigrants.

Getting rid of EU migration (which seems to be your only solution to everything) will solve absolutely nothing beyond the shortest of terms, and introduce all sorts of new problems which you'll go on to blame of foreigners anyway.

The increase in population drives the demand for housing, transport, NHS resources, schools etc.
Once we leave the EU we will, in principle, have control of the number of immigrants which will allow us to control the tax increases needed to spend on more housing and other infrastructure.

HAMISH_MCTAVISH

CLAPTON wrote: »

Once we leave the EU we will, in principle, have control of the number of immigrants which will allow us to control the tax increases needed to spend on more housing and other infrastructure.

And if we reduce immigration we'll have to raise taxes by even more to cover the increased costs per head of the national debt and the massively rising aged care bill.

Herzlos

CLAPTON wrote: »

If we stopped immigration, London would probably benefit by 100,000 per year less people comimg in. The current build rate doesn't even cover the INCREASE in London's yearly population whereas we need to be building to make up for the past increase in population and reverse the decline in owner occupation and the size of properties.

Yup, the problem is your poor build rate. Stopping immigration won't necessarily mean Londons population won't increase either, someone needs to take the jobs.

People drive the demand for housing whether Uk born or immigrants.

Exactly, so why the obsession with immigrants?

The increase in population drives the demand for housing, transport, NHS resources, schools etc.

Which is more than paid for by the increase in population, assuming decent planning and a competent government.

Once we leave the EU we will, in principle, have control of the number of immigrants which will allow us to control the tax increases needed to spend on more housing and other infrastructure.

Once we leave the EU and control immigrants, the only thing we can do is put up tax to cover the defecit we've just created by controlling immigration. You do realise that on the whole, immigration gains us more money than it costs us, right?

HAMISH_MCTAVISH

Herzlos wrote: »

Once we leave the EU and control immigrants, the only thing we can do is put up tax to cover the defecit we've just created by controlling immigration. You do realise that on the whole, immigration gains us more money than it costs us, right?

EU immigration is significantly net fiscal positive.

Non EU migration is not however - it's a net fiscal cost - because we're spectacularly bad at picking and choosing.