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.
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
-
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.
-
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.
-
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%.
-
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.
-
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.
-
Value is starting to emerge in the markets
Opinion If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy traditionally expensive growth stocks on the cheap, too.
-
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.
-
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.
