Diagnosis: market failure
Birch, Julian
Diagnosis: market failure - 2007 - Roof May/June 2007, 25-29(5) .
House prices are still increasing and the buy-to-let market is buoyant. However the market is now dysfunctional in all other respects. It became harder for first-time buyers to enter the market in 2006. Repossession rates have increased by 65%. New flats are priced higher than existing houses. Owner-occupation has fallen for the first time in 50 years. Regional variations are increasingly pronounced. Mortgage approvals are rising steadily. Affordability has continued to worsen. This impact is lessened by first-time buyers lowering their expectations and lenders not passing on all of the year?s 0.5% interest rate rise. Housing supply has still not matched demand.
United Kingdom--
Diagnosis: market failure - 2007 - Roof May/June 2007, 25-29(5) .
House prices are still increasing and the buy-to-let market is buoyant. However the market is now dysfunctional in all other respects. It became harder for first-time buyers to enter the market in 2006. Repossession rates have increased by 65%. New flats are priced higher than existing houses. Owner-occupation has fallen for the first time in 50 years. Regional variations are increasingly pronounced. Mortgage approvals are rising steadily. Affordability has continued to worsen. This impact is lessened by first-time buyers lowering their expectations and lenders not passing on all of the year?s 0.5% interest rate rise. Housing supply has still not matched demand.
United Kingdom--