2
Nov
Rics rubbishes prospects of housing crash
A leading property market expert has rebuffed claims that the UK
could see a housing crash similar to that being suffered by the
US.
David Stubbs, senior economist at The Royal Institution of
Chartered Surveyors (Rics), said that fundamental differences in
the two markets would mitigate the chance of a US-style housing
crash.
In particular, Mr Stubbs noted that the disparity in housing supply
would prove a key factor.
He told BBC Radio Four: "There are obviously several significant
differences between the US and the UK. One of the most important we
think is looking at what happened in the supply side.
"In America, in response to higher house prices, the house builders
really ramped up production, increased the amount of new homes
coming on the market massively."
He added: "In this country we saw nothing of the same kind of
reaction over ten years of house price increases, and indeed now
everyone accepts that we need to vastly increase levels of house
building."
