The director of housebuilder Taylor Wimpey says “a 15 year property boom, with no bust, is more than a distinct possibility” and the residential and commercial industries “about to enter an unprecedented period of boom.”
Mike Hussey, a former Land Securities executive, is quoted by the Sunday Times as telling the Association of Property and Fixed Charge Receivers’ annual meeting in London that a combination of tight supply caused by “glacial” planning process, low interest rates and instability around the world made Britain - and London in particular - highly attractive.
Hussey - who told his audience of lengthy planning consents for residential schemes that he had suffered in past years - described slow agreements from local authorities as “a sign of the times” and a key reason why the supply of homes would remain constrained in Britain.
“Between the last two [housing market] cycles, the length of time it takes to get planning on the most straightforward of assets has certainly doubled and on more complicated and larger assets it has probably trebled” he claimed.
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15 years of boom? Oh joy!
So does this mean 15 years of boom and then a massive bust? Because that doesn't sound very promising.
Not necessarily, Rob. If all the conditions remain favourable, then years of boom doesn't have to lead to a massive crash.
Obviously, steps need to be taken to improve the supply issue and something needs to be done to speed up the planning process. Because, as the article states, at the moment it's glacial.
Mike Hussey is clearly mental.
@ Mark Walker - I wondered what Mike Hussey had been up to since retiring from international cricket, clearly he fancied a change of profession.
It’s an attention grabber. In short nobody knows as most crashes are unpredictable. So I suggest we all make hay whilst this current boom’s sun shines!
Yes, it's very hard to predict when a crash comes - it usually smacks you in the face from out of nowhere. For example, who anticipated the 2008 global financial crisis?
And I'm not really sure where Mr Hussey is getting his info from. There is no evidence to suggest that a 15 year boom is in the offing - how does he know that unless he is in possession of a magic crystal ball?
I think the writer of this post, is talking out his backside! No hard facts rather his own opinions....... and let's face we all have opinions!
The facts speak for themselves, the market has been artificially propped up. We are in a massive property bubble amongst other assets! The charts don't lie and we will see a huge crash in the near future.
How long exactly is anyone's guess as someone rightly said; unless you have a crystal ball!
It all depends on how long they can keep kicking that can down the road!
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