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Also smaller developers find it harder to get finance to complete their projects in falling markets.
The houses usually get built one way or another, though? Even if the bank has to intervene and wipe out the original developer's equity.
It's rare to see in the UK the situation they had in Ireland post 2008 where property prices fell so far that they were below construction cost (implying a negative land value).
NickCJ-
Prices fell in Ireland (and Spain and lots of other places) because supply was higher than demand. They built more houses than there were buyers. There are houses built in such places in 2007 that have still never been lived in.
There are plenty of towns in the UK where you can buy a second-hand house for less than it would cost to build it new, even if the land were free, which it never is.
https://www.rightmove.co.uk/properties/130187429#/?channel=RES_BUY
That house does not supply good vibes ofc, so you are right.
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The houses usually get built one way or another, though? Even if the bank has to intervene and wipe out the original developer's equity.
Not really. The thousands of houses at the bottom of my garden, a new southern suburb of Cambridge, were due to be built in 2008. They started them in 2013, once the market started to climb again.
Hefty
They kinda do. Or rather falling prices reduce availability of new builds as big builders like Barratt and Persimmon slow their rate of build if the market slows to control supply. Also smaller developers find it harder to get finance to complete their projects in falling markets.