WMN London editor Graeme Demianyk reporting from the Labour Party Conference in Brighton refers to the promise to build 200,000 new homes a year.
Comment All those who go gung ho for housing growth will be excited by this proposal. It sounds simple enough – you build more houses and with more supply prices come down.
But that is not how the housing market operates. It’s not just the number of houses but the type. If developers build for a luxury market that will have no impact on house prices. Then there is always demand. If there are people out there with the capacity to bid up prices then prices will go up.
We know that in Cornwall lots of the extra houses that have been built end up as holiday homes or lets, just building more would also mean more houses for this market.