The UK Housing Bubble yet to Burst: FT Video

IveSeenTheLight

Really2 wrote: »

I think I may be an example:o I have a house a lot bigger than we need simply because I do not want to be buying it in 10-15 years time because I believe it will cost me more as other my age will then be looking. Also the sooner I buy it the sooner I can be mortgage free.

totally agree, I too am involved in the same culture.
I bought a 4 bed house before having children.
The wife and I also heavily paid down the mortgage so that when we did decide to have children, life was affordable on one wage.

Your very true there are many who prepare for their future and also those that simply want the best they can get.

My point was that this change in culture simply squashes extra demand into property, making it more competative and greater demand than there was in previous generations.

It is why when understanding the change in culture you understand that it's not necessarily that simple to return to previous trends or multiples

Really2

IveSeenTheLight wrote: »

It is why when understanding the change in culture you understand that it's not necessarily that simple to return to previous trends or multiples

I totally agree with that (and kind of what I stated before ref women working)

If you did believe that things must go back to a historical trend when are bananas going to go back up to pre-war costs compared to wages? (mmm some may be pushing banana manipulation on here in the next few months).

You have to take in to account on trend changes in circumstance EG bananas are cheaper due to them getting here quicker and farming methods, travel etc.

Unless there is a drastic change that will affect the above their trend will not change.

So my theory is unless there is a drastic shift in thought and people will only or be forced to buy on 3.5X the male wage and womens wages are not allowed on mortgage applications. It is very unlikely houses would return to such pricing TBH.

The threat to house prices are more likely to fall because of lending, deposit size and economy than cost of a house at the moment TBH.

I suppose the other factor is yes 2 people on a mortgage means it is more likely for one to be made redundant than a single person statistically.
But when it does happen there is still one wage to pay the house with.
A single wage and redundancy is default,another factor often overlooked historically.

GDB2222

I don't really believe that there's more demand for houses now than in the past. There have never been enough to go round. If everyone had one, then we'd all want a second one "for spare".

Loads of wives used to work in the 1970's. Now it's loads of partners, but economically it's the same thing.

No, the one really big change in the last 30 years is that mortgages have become bigger as a multiple of salary. Given the opportunity to borrow more, nearly everyone has done so, and that's what's pushed up prices. I don't know how sustainable that is, but I certainly don't see how it can just keep trending upwards as some people have just assumed will happen. If mortgage multiples drop then prices will have to follow suit.

out_of_cash

Totaly with you mbga9pgf


anyone who thinks property is a safe bet at the mo is crazy, keep an eye out this summer for more bad news inspired by the stock market crashes on the way. plus rising bankruptcy and failed iva stats,high unemployment its a disaster waiting to happen.

out_of_cash

the double good news is wait for interest rates to rise which one day they surely will .

IveSeenTheLight

out_of_cash wrote: »

the double good news is wait for interest rates to rise which one day they surely will .

Your right, one day rates will rise.
I wouldn't want to wait for that to happen though.

Far better to benefit now when rates are lower than have to pay a higher rate later

HAMISH_MCTAVISH

out_of_cash wrote: »

the double good news is wait for interest rates to rise which one day they surely will .

With advice like that, it's no wonder you selected such a user name.

How appropriate.;)