Financial Times FT.com

Housing demand is in danger of hitting a brick wall

By Sharlene Goff

Published: June 15 2007 17:51 | Last updated: June 15 2007 17:51

After years of falling housebuilding, the number of new homes coming on to the market is finally picking up. But as property supply gradually starts to improve, it seems another problem could be brewing.

Property experts are warning that skewed supply, and too many of the wrong types of properties, could result in certain pockets of the housing market becoming saturated, while other areas will remain severely under-supplied. This could result in significant differences in price rises and falls regionally, but also between neighbouring markets.

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