Construction Industry Federation : Scare Tactics

From the Examiner: … qqqx=1.asp

They seem to repeat this message every few months. Releasing this rubbish to the media is a win-win for the CIF.

  1. It puts pressure on planners to rezone more land and speed up applications.
  2. It reinforces the notion in Joe Public’s head that there’s a housing shortage and prices will go higher.

Well given that the local authorities are incentivised (by way of backhanders and other “favours”), it is hard to believe that the slow-down in the number of planning permissions being granted is due to a new-found social concern by our planning superiors.

A shortage in zoned land means only one thing - we don’t need any more zoned land. Or put another way: the risk factor vs. rate of return ratio has become too great to justify going ahead with development projects. To somehow confuse this fundamental economic reality with the idea that “demand is outstripping supply” is nothing but devious PR gymnastics.

Or those VIs pulling the strings in this market have reached the same conclusions about the state of the market that have been discussed over the last few months on AAM and now the Pin. Consequently supply is being withdrawn, and the news angle of the story of falling prices is being manged through this sort of guff.

If I remember correctly the nation’s Local Development Plans contain enough zoned serviced land to accommodate 300,000 new homes. At the moment approx 15% of the housing stock is empty. We probably have sufficient zoned land to accommodate housing development for several years (maybe longer :confused: )