INDUSTRY NEWS

Residential ‘could follow commercial property model’

The residential property market could move to a commercial property model.

A spokesperson for the British Property Federation told the BBC investment for new homes would be stimulated by the move.

Andrew Teacher said: "What we could actually see is the big investors coming in, buying up properties en masse or building new properties to rent."

By adopting the commercial property model "where we have offices and shops let by big developers and they’re purpose built," the industry could better solve the county’s housing shortage, he suggested.

His statement followed an announcement by the House Builders Association (HBA) saying the industry will fall short of government targets to construct 240,000 homes by 2010.

Roger Humber of the HBA said the current house shortage crisis "really is on a scale we’ve not seen before".

"House builders are not going to be starting new sites, they’re going to be laying people off, they may even be mothballing sites," it was reported he said.

House prices are falling rapidly, according to numerous commentators, including the Halifax, which reported they dropped 2.4 per cent in May.

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