Why we aren’t building enough houses to meet demand
It’s not the planners’ fault we aren’t building enough houses. Or land-banking developers. It’s getting the infrastructure in place. So what can we do about it?
We aren't building enough houses, on that everyone seems to agree.
Two quick points to make on that. First, London is different. There, we seem to be in process of building more than enough. I've added the numbers up here before,but just to illustrate I have had another press release in this morning from property development group Ballymore.
It's got three whopping schemes underway. There's Arrowhead Quay in Canary Wharf; Phase II of London City Island on the Leamouth Peninsula; and Phase II of the "hugely successful" Embassy Gardens in Nine Elms.All in all, the three will create some 3,000 new homes and 250,000 sq ft of commercial, leisure and office space.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Add this lot to the other projects we've mentioned in the last year and it is clear, as one reader said to me this morning, that far from being a building desert, London is "seeing its greatest transformation since the Great Fire of London". Not long now and there should be no supply problem there (assuming everyone wants a two-bedroom flat in a high rise).
So what of the rest of the country? The story we hear most often is one of dismal planning laws and land-banking housebuilders. But as another reader pointed out last week, it isn't that simple. In fact, councils approve nine out of ten of the applications they receive. But some 400,000 homes in the UK that have been given planning permission have not yet been built. Why?
Ask a developer and he'll tell you it's about infrastructure. Getting permission is the easy bit. Negotiating to get a water supply and the like to a new development at a price that doesn't wipe out your profits is the hard bit. Any reader expertise on this would be very welcome.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).
After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times
Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast - but still writes for Moneyweek monthly.
Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.
-
Renewable investing: who is paying for the green revolution?
Investors in renewables have not been rewarded, says Bruce Packard. Will they fund the government’s plans?
By Bruce Packard Published
-
UK house prices rose 4.6% last year – where did property prices grow most?
House prices increased by 4.6% in 2024, giving an average property price of £268,000. Where did property prices grow the most and will they continue to rise this year?
By Ruth Emery Published
-
House prices to crash? Your house may still be making you money, but not for much longer
Opinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
By Merryn Somerset Webb Published
-
Prepare your portfolio for recession
Opinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
By Merryn Somerset Webb Published
-
Investing for income? Here are six investment trusts to buy now
Opinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
By Merryn Somerset Webb Published
-
Stories are great – but investors should stick to reality
Opinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
By Merryn Somerset Webb Published
-
Everything is collapsing at once – here’s what to do about it
Opinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
By Merryn Somerset Webb Published
-
ESG investing could end up being a classic mistake
Opinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
By Merryn Somerset Webb Published
-
UK house prices will fall – but not for a few years
Opinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
By Merryn Somerset Webb Published
-
This isn’t the stagflationary 1970s – but neither is it the low-rate world of the 2010s
Opinion With soaring energy prices and high inflation, it might seem like we’re on a fast track back to the 1970s. We’re not, says Merryn Somerset Webb. But we’re not going back to the 2010s either.
By Merryn Somerset Webb Published