>>The net migration figure still represents an increase in overall population
Yes.
[crap explanation follows]
However, if you think of housing demand as a tube with new demand turning up at one end, gradually flowing through bigger and bigger houses and then falling out of the market at the end, and then consider that even though there are still more and more people flowing through, the rate of increase has dropped.
That could potentially mean that the rate of accommodation coming onto the market at various points could exceed the rate of increase of demand.
e.g. The demand for £500,000 houses was increasing at 10 per month. The supply of such houses was also increasing at 10 per month.
If the demand next month only increases at 9, but the supply still increases at 10, there's a spare house.
So next month less houses must be built. If it happens on successive months, then there goes construction, confidence, prices etc. etc. etc.
Last edited by: No FM2R on Mon 23 Jul 18 at 11:59
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