Originally Posted by
BlackPeter
House sales are depressed due to a political decision to reduce speculation (investors can only borrow 60% of the value of houses they buy). This reduces the amount of capital available to buy housing stock. However - people still need houses ... and its every day more people (immigration & births) who need them. If the next government (no matter which colour) has any grey matter worthwhile talking about between their ears than they will reduce / remove the lending restrictions for new buildings.
As well - Labour is talking about restricting non residents from investing in existing housing stock. However, they still intend to allow them to build new houses (similar as in Australia). A policy like that is increasing the demand for new houses, as would be reducing the lending restrictions on new houses.
Again - given that there is real demand would I think it sensible to assume that the building boom will continue and the number of building permits will rise from the 30k pa not just I expect this year. Both political parties promised to ramp up the build rate, not to drop it - and so I think it is a fair assumption that whoever wins the elections will make sure they have no egg on their faces come the next polling day