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Bank of England chief economist says UK housing market "broken"



Britain's housing market is "broken", the Bank of England's chief economist Andy Haldane said on Thursday, in an unusually forthright criticism of the lack of new homes being built.

Haldane said Britain needed to build around 200,000 new homes a year, and that its failure to build much more than half that -- largely due to a lack of new public housing -- had caused prices to rocket.
"The UK housing market is broken," he said at a meeting hosted by Britain's Trades Union Congress. "There is a chronic and accumulated imbalance between demand and supply, and it is that which is sending skyward - and has sent skyward - house prices."


Asked separately whether the BoE should print money to fund government infrastructure projects, Haldane said there was a good case for more infrastructure investment but that the government could borrow very cheaply from financial markets

(Reporting by David Milliken; editing by Ralph Boulton Rueters)


In his report data from ONS, shows there has a been a median decline of 8% in median salary for real estate activities and -11 % in construction [see below]



Haldene, also said that humans are racing against the machine , with the growth of more technology driven professions .This would put  a future 30 million jobs in the UK at risk and 80 million in the US.

Further Reading

Would a robot replace an estate agent in the future ?

Labour’s Share - speech by Andy Haldane downloaded here 


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