UK housebuilders raking in profits while affordable housing lags
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New build house prices from major UK developers are rising much faster than average house prices, with new builds now costing 8% more. This mirrors a trend of these firms paying out historically high dividends.
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Major housebuilders have been able to increase prices and payouts as global investment firms have become their main shareholders, while reducing costs.
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The UK Competition and Markets Authority concurs that speculative building focuses on what generates most profit, not broader housing needs.
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Diversifying who builds could increase affordable and needed housing, via associations, self-build, and community-led projects.
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The author argues over £16 billion paid in dividends could have gone toward building more homes and addressing issues like quality and sustainability.