08.10.2008 - Why house prices will keep falling - fast
From Money Week: Worried about the housing market? Well you shouldn't be. Or so says Graham Norwood in The Observer. Why? Because we aren't building enough houses to meet government house building targets. Gordon Brown's plan was to make sure that 240,000 to 297,700 houses were to be built every year until 2016. Yet this year, a mere 110,000 will end up being built and next year we can expect to see no more than a "dismal 55,000." The result? "Supply has fallen so far behind demand that an upturn is inevitable." So convinced of this is Norwood that he quotes without question a forecast from who else The National Housing Federation, that suggests the average house price will rise 25% from its current levels by 2013. "Demand is going up while the supply of new houses is going down," says NHF chief executive David Orr..... Full Article: Source