Monday, 2 December 2013

That housing boom...


Lots of shouting and froth about bubbles (rather than the more prosaic job of reforming planning so developers can actually build some houses somewhere near London):

According to a national house price survey released today, demand has soared by 10.2 per cent in six months, while supply has dropped 0.6 per cent in the same period.

Now there's a bit of logic to this - it takes a few months to build a house (and anything up to two years to get planning permission for that building) and not every home owner wants to sell - but yet again we've calls for drastic policy intervention in housing based entirely on this:

The greatest imbalances, and highest price increases are in London and the south east where prices are up 4.8 per cent and 3.2 per cent respectively in six months.

Won't stop any number of people writing wise and learned economic commentary about housing bubbles when:

Much of the growth outside London remains muted and far from what could be described as a “housing bubble”.

And I'm prepared to bet that there are plenty of places 'up north' where the market has hardly budged. And also to predict that pretty soon those wise and learned economic commenters will get their way, interest rates will rise and incentives will end. Leaving the North to limp along behind again.


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