Tuesday, 9 March 2010

Labour boost London housebuilding, not.

Gordon's spin machine is making the most of today's announcement on Labour's help 'to get the housebuilding market restarted' with an £83m boost.

In London, completions have fallen around 11% from 22,750 new dwellings completed in 2007 to 20,230 in 2009, an annual drop of 2,520 dwellings. However, there are signs that the market is sorting itself out; there was a big standstill in the last quarter of 2008 on new starts as sites were frozen, but these are now being completed, and completions in the last quarter of 2009 were back to 2007 levels.

So how much of that 11% drop will Gordon's 'boost' reverse? London's share of Gordon's pot comes to 141 dwellings - that's, er, a boost of 0.62%. If all 141 are built in the same year. I expect the market will sort the other 10.38%.

There was a time when a government policy that increased home completions by less than 1% would have been a matter of shame for ministers - not in Brown's government, it seems.

1 comment:

Demetrius said...

Very many of these "dwellings" are cramped badly built flats shoe horned onto small sites which will be run down within two decades. They have the great virtue of providing more income streams for certain property management services in which polticians have financial interests and are owned by rapacious financiers who will rip off the unlucky residents.