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

nearlynew

But in the 70s most people could buy with one income.


Ever feel like you've been played McTittish?

Graham_Devon

HAMISH_MCTAVISH wrote: »

House prices were cheaper in the 70's.

The percentage of income required to buy a house, including mortgage interest, was higher in the 70's.

It was less affordable to buy a house in the 70's than today.

So simple, surely even Mrs T can understand it.

Ignore the one income aspect....ignore the one income aspect.....ignore the one income aspect.

Sorry, I thought it was getting repetative

Damaged

I have not read this thread, nor will I.

There are many reasons why HP are more expensive.

It is down to the education and developement of the BRIC's nations, the development of the internet and our mobility.

Most of you will rave on about interest rates etc being low, but with out the above, none of it would have happened.

ukcarper

nearlynew wrote: »

But in the 70s most people could buy with one income.


Ever feel like you've been played McTittish?

not true if it is prove it

HAMISH_MCTAVISH

nearlynew wrote: »

But in the 70s most people could buy with one income.

In the 70's, most people couldn't buy at all.

Linton

Sorry but this is a silly argument unless you take the social conditions into account.

Houses were in cash terms cheaper BUT:

• pay was lower in real terms - less disposable income to pay mortgages.
• Families were mainly single income. There was much less possibility of women earning good wages. It was less acceptable for mothers to hold down full time jobs, they couldnt have got the child care anyway.
• Much larger numbers of people were living permanently in rented accommodation, mainly council housing. Many did not see themselves as potential home owners, and to be honest they werent.

So for the "average" person home owning was equally difficult as now. For many it was completely out of the question. For the more wealthy it was comparatively easy.

So nothing much has changed, except perhaps expectations. There are many more pople now who see themselves as potential home owners and are therefore frustrated when the realities of supply and demand prevent them buying.

Is this better or worse then simply not having the option?

LilacPixie

Were womens wages even allowed to be counted towards mortgages in the 70's? I can remember my mum saying her income was not counted when buying their home because it was 'normal' for a woman to stop working to raise a family.

ukcarper

LilacPixie wrote: »

Were womens wages even allowed to be counted towards mortgages in the 70's? I can remember my mum saying her income was not counted when buying their home because it was 'normal' for a woman to stop working to raise a family.

there were but generally only 1x

A._Badger

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

LilacPixie wrote: »

Were womens wages even allowed to be counted towards mortgages in the 70's? I can remember my mum saying her income was not counted when buying their home because it was 'normal' for a woman to stop working to raise a family.

ukcarper is right and so was the person who reminded us that you had to endure an interview with a building society manager before being 'granted' a mortgage.

There was no question of someone 'selling you a product' back then. It was as if they were doing you a very considerable favour.

carolt

HAMISH_MCTAVISH wrote: »

In the 70's, most people couldn't buy at all.

Couldn't or wouldn't?

You forget that in the 70's - long before the era of property !!!!!! shows on the TV - most people had no need to buy. Rents were controlled, tenants had security of tenure, council houses were still being built and were widely available and this was long, long before the era of right-to-buy.

Today's assumptions that everyone wished to buy, or if they couldn't were 'frustrated' in some way, are terribly anachronistic.

Far fewer people bought partly because far fewer people wanted/needed to buy.

And we all know what impact lower demand has on prices...