Bank of England chief economist says UK housing market "broken"
Thu, 12th Nov 2015 19:13
LONDON, Nov 12 (Reuters) - Britain's housing market is "broken", the Bank of England's chief economist Andy Haldane said on Thursday, in an unusually forthright criticism of the lack of new homes being built.
Haldane said Britain needed to build around 200,000 new homes a year, and that its failure to build much more than half that -- largely due to a lack of new public housing -- had caused prices to rocket.
"The UK housing market is broken," he said at a meeting hosted by Britain's Trades Union Congress. "There is a chronic and accumulated imbalance between demand and supply, and it is that which is sending skyward - and has sent skyward - house prices."
Asked separately whether the BoE should print money to fund government infrastructure projects, Haldane said there was a good case for more infrastructure investment but that the government could borrow very cheaply from financial markets. (Reporting by David Milliken; editing by Ralph Boulton)
Scotland’s commercial property needs ‘rapid recovery’: Scotland’s commercial property market faces a New Year hangover unless a “rapid” recovery in the economy kicks in over the next couple of months, a key report will warn this week.
London’s house prices are the most over-valued in the world: Economists warn that capital is in ‘bubble-risk territory’: House prices in London have become so over-valued that they are completely out of the reach of all capital dwellers living off a local income, top global economists have said. A UBS study revealed that only Hong Kong is worse in terms of affordability for city dwellers trying to buy their own place than London. They say homes in the city cost more than ever before in comparison to wages, with the average price now sitting at an eye-watering £500,000.
Sales of costliest houses dry up as top rate of levy on property soars: Proof that stamp duty hike brings in less for Treasury: The Treasury is earning less from the sale of Britain’s poshest homes after the Chancellor’s shake-up of stamp duty rates last winter, according to analysis for The Mail on Sunday by a leading estate agent.
Wealth of 250 richest people with U.K. property assets soars 40% to £300 billion: The net worth of the world’s 250 richest people with property investments in the U.K. has jumped by 40% to more than £300 billion, the largest annual increase on record. The list, published by property publication Estates Gazette, features 60 billionaires, compared with just 10 in 2009. Amancio Ortega, the Spanish billionaire behind the Zara fashion chain, took the top spot with a fortune of £45.7 billion
Social housing builder Genesis blames rent cut as it slashes affordable homes: One of Britain’s biggest housing associations plans to cut the number of affordable homes it builds each year and double the amount of properties it will sell after George Osborne said he would cut social rents. Neil Hadden, the Chief Executive of Genesis Housing Association, which operates in London and the East of England, said it would cut the number of affordable homes it builds each year and those for social rent to about 100, while it will construct about 500 for shared ownership and 400 for market rent and sale
I have found a lot of folks do not read papers or even look at the news thereby missing out on crucial issues. Mind you quite happy to watch all the soaps under the sun. ' Shabby ' ad on tv at the moment giving people the impression they have nothing further to pay after getting their equity release funds.
Woman on TV last night mugged out of £35k and even let the muggers walk her to the bank to withdraw the money. How many times do people need telling..!!!!
Mugged ... perhaps an evocative word, but perhaps also not an unfair one ... caveat emptor is probably better, although to be honest the average persons knowledge and experience of financial instruments and situations is such that its like taking candy off a baby.
An elderly couple asked my advice, about 20 years ago when this scheme was popular in a past time, I didn't advise them one way or the other, but I made sure that they understood all the ins and outs of what they were doing and what their other options were. They chose not to go ahead with it -- I thought that that was the right decision for them.
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