Why were house prices cheaper in the 1970s than they are in the C21st?

Generali

Why were house prices cheaper in the 1970s than they are in the C21st?

Generali

Mortgages were rationed so many couldn't buy despite being able to afford the repayments

I'll give you a clue: the answer isn't connected with baby boomers.

carolt

I'm hoping this is a work in progress. You only appear to have 2 options, currently, only one of which makes grammatical sense.

When finished, I look forward to casting a vote.

Malcolm.

Answer: There was less effective demand per unit supply in the 1970's.

HAMISH_MCTAVISH

It's a trick question.

The cost of purchasing a house, including mortgage interest, was more expensive in the 1970's than this century.

ukcarper

why were they cheaper in mid 90s than 70s and now

Malcolm.

HAMISH_MCTAVISH wrote: »

It's a trick question.

The cost of purchasing a house, including mortgage interest, was more expensive in the 1970's than this century.

My parents bought a 3 bedroom property on a single wage, and could afford to bring up 4 children in the 1970's. Greater London Location.

There's no way the young of today can afford to do this.

(disclaimer: it may be different in other areas of the country)

vivatifosi

Is this a trick question? I'm in trouble for being a baby boomer and in the 1970s I was a kid and wouldn't have been allowed to buy a house. Stop picking on me Gen or I'll pick up my ball and go inside and sulk until dinner time.

As a grown-up, my answer would have been "buy a house while there's a three day week imposed, are you having a laugh"? The three day week, hot summer of 76 and flared trousers are the main things I remember from the 70s. Oh, plus rubbish not being collected at the end of the decade. Not exactly an illustrious time I guess and the economy appears to have been going to the dogs for much of it.

carolt

Malcolm. wrote: »

My parents bought a 3 bedroom property on a single wage, and could afford to bring up 4 children in the 1970's. Greater London Location.

There's no way the young of today can afford to do this.

(disclaimer: it may be different in other areas of the country)

As did all my schoolfriends' parents, all in nice Zone 3 suburb, all on single wage.

Of course it was far cheaper then.

I'm still waiting for the other poll options...

Generali

Mortgages were rationed so many couldn't buy despite being able to afford the repayments

In the 1970s you could borrow money for a mortgage from a building society at below the inflation rate or any kind of market interest rate. However, all things must be rationed one way or another and so mortgages were rationed by preventing most people from having one.

As the majority of people are unable to buy a house without borrowing money, only a little over half of people owned their own home in the 1970s.

Exocet

G, they were cheaper in real terms. Single wage buys a house. Not a shared equity high rise one bedroomed toilet... a house.

End of.