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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-
My strong suspicion though is that Cambridge resi land didn't become unviable in 2009, it just became unviable at 2008's land value. Or the landowner thought they'd make more cash by waiting.
Going back to the original point, I really don't think that example supports the argument that more house price growth would lead to more building in the UK.
NickCJ
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).