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Originally Posted by Migrant_Coconut
^ Is this a short term thing, or could we end up swinging in the opposite direction and get an oversaturated market?
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It'll be interesting to see how the market plays out as oversaturation approaches. While the empty homes tax and speculation tax were intended to increase the housing supply, they'll discourage residential development if vacancy rates go too high.
It will be difficult for developers to respond nimbly to demand given how long it takes to bring new housing stock on the market. Presumably they'll protect themselves by acting conservatively, and only brining new housing to market when demand is guaranteed to be strong.
Long term, these taxes as implemented will act primarily to limit expansion of our housing stock, limiting overbuilding and any associated price crashes.