Can someone please explain....

Mrs_pbradley936

F_T_Buyer wrote:

I think the OP has hit on a important point. It's not whether woman or single people should buy, it's about the liberalisation of lending criteria, and how it affects house prices.

As we have seen, the more buyers can borrow, the more house prices go up. We can easily see over the years how mortgage multiples have increased,

I must confess that when I started the post I was concerned about young women having to do too much and that women’s liberation had not really made their day to day lives any easier. You have made some really thought provoking points about the money supply and those of us who are old enough to remember the last round of negative equity know those points are valid. History has lots of reminders of boom and bust such as the Wall Street Crash leading to the Great Depression in the USA. Or that it took wheel barrow loads of money to buy a few items in Germany in the 1920s. All of that brought Hitler to power resulting in the second World War. House price inflation is not as rampant in the USA (I used to live there) but they have a 10% tax on any gain. They also have something called a “Jumbo loan” which is anything over and above an amount set by some sort of government backed committee I think it is called Fannie Mae. So that if you have a jumbo loan you pay a lot more for it. So a penalty for borrowing more coupled with tax on any profit seems to keep prices in check.