The housing bubble

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The FT reports this morning that:

Since 2012, developers [in London] have begun building 44 per cent more homes than they have managed to sell. Last year, work was started on 1,900 luxury apartments, but only just over half have sold.

As someone once wrote:

I'm forever blowing bubbles,

Pretty bubbles in the air,

They fly so high,Nearly reach the sky,

Then like my dreams,

They fade and die.

Fortune's always hiding,

I've looked everywhere,

I'm forever blowing bubbles,

Pretty bubbles in the air.

That's the tale of the modern London apartment block for you.

And that's the tale of market failure.

Meanwhile, the rest of the country faces a housing shortage.

You could not make it up.