Housing market: a burden on builders
Article Abstract:
New UK guidelines on social housing could increase the costs of housebuilders substantially, according to McCarthy and Stone, a builder of retirement homes. Housing developers have to provide affordable housing for local government, in line with these guidelines. The means supplying a free home per five homes constructed, approximately. Plots can cost 40,000 pounds sterling and a project involving 50 homes can cost 400,000 pounds in payments to the local authority. Other companies argue that the guidelines will not have a major impact since councils already seek what are effectively bribes prior to granting planning permission.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Housing: the temptation to tamper
Article Abstract:
The price of UK housing fell in 1995 and is some 33% below a peak reached in 1988, in real terms. Sales were for 85,000 units in April 1995, the lowest level in 18 years and 50% less than in 1988. More than 1.2 million households have more mortgage debt than the value of their real estate. The government should probably not intervene, since prices were at unsustainable levels in 1988. Homeowners with large debts should repay them. Housebuilders are building bigger homes to adapt to changes. Government intervention could create a second inflationary spiral followed by a hangover.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Developers turn bullish
Article Abstract:
The UK real estate industry is recovering with over 25% of UK companies seeking to invest in real estate in 2nd half 1996, according to the Confederation of British Industry (CBI). Real estate investment companies have carried out three rights issues which have raised nearly 300 million pounds sterling. Investors should be cautious before committing themselves since a previous enthusiasm for real estate in 1993 was based on the forecast a boom would occur but this did not materialise.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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