Sunday 31 March 2013

And if we can keep the number of "new builds" well below 200,000, who knows how high they could go !

Some cheering news from the Centre for Economics and Business Research ..
The cost of the average home will jump by nearly £50,000 over the next  five years, partly fuelled by the Government’s  mortgage lending scheme, a report reveals today.
 
The Centre for Economics and Business Research said house prices will pass their pre-recession peak next year and will go on to hit record highs at a time when millions cannot afford to buy their own home.

The economic consultancy predicts the £130billion lending scheme, unveiled in last month’s Budget, will add more than £1,000 to the price of a property next year.

Economist Daniel Solomon, who wrote the report, said: ‘By 2018, we expect the typical UK home will cost £267,000, over 20 per cent more than this year.

‘We expect the Chancellor’s new Help to Buy scheme will push up house prices before it raises housing supply.’
 
Although full details of the scheme have not yet been published, the CEBR predicts it could ‘raise prices by up to 0.8 per cent in 2014 without having any appreciable impact on housing supply’.

6 comments:

Bayard said...

That's amazing! A Daily Fail article that doesn't look at things from the seller's point of view and no suggestion that a further hike in house prices (which are referred to as "prices" or "costs" throughout, not "value") is a good thing, even a suggestion that they may be a bad thing.

Oh, wait, it's April 1st, isn't it...

Mark Wadsworth said...

B, the DM also employs younger reporters who often sneak in this stuff in the morning before the H team rolls up and re-writes it all. And that article was published 31 march, so the question is, where is the H team?

Bayard said...

On holiday?

Mark Wadsworth said...

B, presumably.

Mark Wadsworth said...

Bob, just for the record, the Lib-Cons' target is to keep new construction below 100,000 homes a year.

Bayard said...

Bob, we don't even need 10,000 new homes a year: analysis of the last two censuses shows that the occupancy of our housing stock is actually going down. Cutting new-builds to zero would have less effect on occupancy and prices than a slight hike in interest rates. The so-called "housing crisis" is a political fiction manufactured for the benefit of landowners and "developers".