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  • Just checking, but I presume you mean low price elasticity of supply, here? As in, increases in price do not increase the supply of new builds or result in more second-hand homes on the market.

    Always lovely to see the basic supply/demand pricing mechanism break when it comes to the largest purchase ever 🙃

  • Sorry, you are right, I meant high inelasticity (or low elasticity).

    Marginal housing supply = land plus ability to build. House prices are high enough that almost any bit of UK land is already economically viable so the binding constraint is planning / labour / materials.

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