Subnostr

Chancellor on the brink of crashing the U.K. economy

Number of houses in the UK - approx 30m. Number of new houses built each year - 200k - and that’s being generous. Stock to flow of UK housing therefore ~150.

Add low interest rates into this and for years we have effectively been told - stick your money in UK housing and it will retain and enhance its value in real terms. This may not necessarily continue.

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Discussion

davies 2y ago

Yes, the UK housing market has been artificially propped up for years by low new builds and high migration. Perhaps if the market does crash it might incentivise people to become more entrepreneurial and create something valuable for society rather than think they can sit on an ever-appreciating asset all their lives.