[lbo-talk] Dispiriting suburbs

James Heartfield Heartfield at blueyonder.co.uk
Thu Oct 19 16:38:15 PDT 2006


Andy F:

'Seriously. Tweak "working class aspirations" to "market forces" and this stuff is indistinguishable from Julian Simon.'

Well yes, if 'market forces' were interchangeable with 'market forces' you might have a point. But since they are at odds, then your point is not pertinent.

WS:

'So I reckon all you want is more affordable housing for a few million Brits. That is fine, but thousands of developers have already been working on it. They did their math...'

Your faith in the capacity of the market to meet social need is touching, but unjustified.

Housebuilding is at an historic low in the UK despite the phenomenal demand. The national average house price is stg. 149,000 (or $279, 702.80). Monthly payments on a mortgage of stg. 150 000 at 5% are nearly stg. 900 ( or $1689.48). For reference, average monthly wages are stg. 1,991 (or $3738).

The developers did their math, and they worked out that even at these prices it does not make sense to build in the UK because land prices are artificially elevated by planning laws designed to prevent suburban sprawl. Consequently, house building in 2003 it was the lowest since the end of the 2WW.



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