The government could cover the whole of Britain in new housing and property prices would continue to rise if monetary policy remains as loose as it is now, according to notorious Societe Generale strategist, Albert Edwards.
Let’s test the hypothesis. Urban land use, meaning all buildings and infrastructure, including parks and gardens, is less than 12% of land use in the UK. If we build at 16 homes per hectare, the typical rate for the green belt, we could build 330 million new homes on all the remaining land.
Methinks such oversupply (enough for every man, woman and child to have five houses each) might affect house prices!