Housing shortage will help the market recover
- 22nd October 2008
- Selling Property News
Gordon Brown says that the shortage of UK housing should influence a housing market recovery.
The UK property market is likely to bounce back before those of other countries because "we failed" to build enough houses, Gordon Brown has said.
In a recent speech at Reuters, the prime minister told a City audience the UK had “failed” to build enough houses and had a “pent-up demand”.
In contrast to Spain and the United States who had “overbuilt”, the shortage of housing created a demand in the UK. Gordon Brown said how the UK problem was not shortage of homes at "the right prices" but rather a shortage of mortgages "at the right prices for people to buy". The demand was around 300,000 a year and we only built 200,000. As a condition of its £37bn cash injection, the government wants RBS and Lloyds TSB to boost loans to house buyers and small businesses.
"I think the housing market in Britain therefore has a better chance of starting more quickly again than the housing market in the States (US) or Spain - but that's a relative judgement," Mr Brown added.
The housing market in Britain has a better chance of starting more quickly again than in the States (US) or Spain.
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