1 thought on “A lack of affordable housing doesn’t defy the laws of supply and demand – it proves them”

  1. Posted 13/08/2018 at 10:47 | Permalink

    Although I take your point that property prices went up because of lower supply than demand and how that prices are very high, NIMBY’s are blocking developments because they are unaffordable.
    However, developers will always want to build something that will give them the highest return for their investment. It doesn’t cost a developer very much to put in high quality fixtures and fittings as the labour cost is the same whether you put in gold taps or brass taps and then you can call the development “Luxury apartments”. As the returns are so much higher for “Luxury” apartments, no body bothers to build any other kind in London. Luxury apartments sell easily: they look good on a plan and in the Artists Impression drawings and from the distance of Singapore or Hong Kong, Croydon appears to be in London on goggle maps.
    A private company developing property in the UK is not a charity or a public service, it is a private company and is only required to make a profit for its owners or shareholders.

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