"It is very disturbing. All these builders going bust will inevitably lead to less houses being built."
You are wrong imo.
The banktruptcy of builders does not inevitably lead to less houses being built. It is the LOWER DEMAND for houses due to SPIRALLING INTEREST RATES that leads to the banktruptycy of builders and thus there are less houses being built due to less demand and not due to the banktruptcy of builders.
There is less supply because guess what.. there is less demand. economics 101. So people won't be competing for less stock. They will be happy to rent at inflated prices because mortgage is too much for some people to handle. Long term your right landlords will buy in when the rents are high and interest rates start to fall thus giving more return. But in the short term (1-2 years) i believe that until these things do happen house prices in the appropriate areas will have some more correctign to do.
Think about this . $10million in unsecured debts to contractors (tradesman). Now i'm willing to bet that NONE of them get paid. imagine what kind of effect that will have on their debts and morgate repayments. Plus all of the 90 staff probably being laid off. All i can see is more mortgage pain for some more people. With this being just the beginning of rising unemployment over the coming years. Unemployment has been the lowest in like 15 years, it can't go much lower and only has one way to go. And the low unemployment has been the only thing holding the housing market up.
