March 17, 2007


Home sales gridlocked (Edmund Conway and Amy Iggulden, 17/03/2007, Daily Telegraph)

The property market has come to a near standstill with the supply of homes for sale the lowest for 10 years, research by The Daily Telegraph shows.

Experts yesterday warned that the market was "gridlocked".

First-time buyers, families trying to move up the ladder and even older owners wanting to "downsize" are all effectively trapped because demand for homes is now far above supply.

The problem is particularly acute in the south of England.

Britain likely to need 5m new homes by 2027 (Angela Balakrishnan, March 17, 2007, The Guardian)
About 5m new homes will be needed in Britain over the next 20 years to keep up with soaring demand. An updated government forecast released yesterday showed that the annual rate of household growth in England to 2026 is now 223,000 compared with the 209,000 calculated in 2003.

The new figure, based on population growth estimates by the Office for National Statistics, prompted fears among housing organisations that house price inflation will be driven higher by a bigger than forecast housing shortage and strong demand from migrant workers and City employees with hefty bonuses. House prices have already seen annual increases of 11% over the past 10 years, according to the Halifax, Britain's biggest mortgage lender.

America, meanwhile, needs housing for 200 million more people over the next few decades and the Mexicans to build them.

Posted by Orrin Judd at March 17, 2007 8:05 AM

At least in the area I worked in, England is empty. They build on top of each other in tiny villages separated by farmland owned by the local Duke. The result is sky high prices for tiny houses.

Posted by: Pete at March 17, 2007 10:19 PM
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