I recently re-read British Housebuilders by Fred Wellings. The book records the history of housebuilders and is well worth a read if you are interested in the nature of housebuilding and the changing landscape of the industry over the decades. The book takes on even greater significance in the current climate where policy makers and others are quick to criticise the industry for its perceived inability to increase supply quickly enough in the face of a housing supply crisis. The devastation caused by the 1974 and 1990 recessions, with over 40 significant bankruptcies, amply demonstrates the risks of overtrading in a cyclical market. More recently the 2008 credit crunch practically brought the whole industry to its knees. However, after six years of relatively stable growth, memories quickly fade. The housebuilding industry is now regularly accused of land banking, restricting supply and expecting unreasonable profit margins.
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