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Debate House Prices
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Why is property unaffordable for even the relatively well-off among the population?
MrPThomas
Posts: 66 Forumite
Why is property still unaffordable for even the relatively well-off among the population?
My question is really as the global crisis gets worse and worse, why are UK house prices not following the rest of the world and crashing?
The USA, Ireland and other places are seeing half price houses why not the UK yet?
My question is really as the global crisis gets worse and worse, why are UK house prices not following the rest of the world and crashing?
The USA, Ireland and other places are seeing half price houses why not the UK yet?
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Because no body will sell their house at house price. They will just go on living there or rent it out. Simple really.0
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Because prices are being kept high by those who continue to buy overpriced property, and the many schemes that encourage this. If the market was not there then price would drop. The next quarter will be interesting as unemployment I suspect will rise considerably and prices will drop quite dramatically.... (pure speculation!)0
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USA is a different market. People can legally "walk away" from, say, negative equity owing nothing. Ireland is much smaller than UK and is suffering much more.0
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Why is property still unaffordable for even the relatively well-off among the population?
Because they are happy to compete for property where people who earn more than them want to live?
Property being unaffordable for well-off people is relative to area.
£40K- £60K wage in central London will buy you virtually nothing.
£40K - £60K wage in the north east will get you a big detached house.0 -
Because they are happy to compete for property where people who earn more than them want to live?
Property being unaffordable for well-off people is relative to area.
£40K- £60K wage in central London will buy you virtually nothing.
£40K - £60K wage in the north east will get you a big detached house.
£40K - £60K wage is way above average.
Lets talk about average wages in the UK.
Someone with average wages has always been able to buy a house with a little deposit.
This is the norm, at the moment house prices are inflated compared with average wages.0 -
Why is property still unaffordable for even the relatively well-off among the population?
It isn't.
The majority of people can easily afford the mortgage payments required to buy a property, as the cost of a mortgage is lower than rent for an equivalent property in 75% of the UK.
However the banks are still rationing mortgages through requiring absurdly high deposits and perfect credit scores, as bank funding is in short supply.My question is really as the global crisis gets worse and worse, why are UK house prices not following the rest of the world and crashing?
The global crisis is not getting worse and worse. The worst part is well behind us, and the recovery has been in place for a year or more in most countries.The USA, Ireland and other places are seeing half price houses why not the UK yet?
Because the USA and Ireland have a massive oversupply of housing, and the UK has a massive shortage of housing.
Housing vacancy rates by country:
Ireland --17%
USA -- 11%
UK -- 3.8%“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Hamish you must be one of the only people in the world who believes the global crisis is over. Do you not understand what is happening to the mortgage backed securities mess? To say the worst is behind us shows total lack of understanding of how we got into the crisis.
How many times has it been said on here that it does not matter how many people would fancy living in a house or how many could afford the monthly payments until interest rates go back to normal.
All that matters is how many people can come up with the finances in the first place.0 -
HAMISH_MCTAVISH wrote: »It isn't.
The majority of people can easily afford the mortgage payments required to buy a property, as the cost of a mortgage is lower than rent for an equivalent property in 75% of the UK.
However the banks are still rationing mortgages through requiring absurdly high deposits and perfect credit scores, as bank funding is in short supply.
The global crisis is not getting worse and worse. The worst part is well behind us, and the recovery has been in place for a year or more in most countries.
Because the USA and Ireland have a massive oversupply of housing, and the UK has a massive shortage of housing.
Housing vacancy rates by country:
Ireland --17%
USA -- 11%
UK -- 3.8%
Nobody is rationing mortgages. Rationing suggests some sort of equality of supply and this is obviously not the case.0 -
Why you said well off? now why do you want to turn it to the average wage of all workers?£40K - £60K wage is way above average.
Lets talk about average wages in the UK.
The average wage of all workers is not as you put it the "relatively well-off among the population"
Nice u-turn though, your faster than rooney.
Have they?Someone with average wages has always been able to buy a house with a little deposit.
With more people working part time now than ever before the average wage is not the same type of work as 40 years ago (perhaps full time wages would be a better measure). But I would love to know when the average wags as "always" purchased a house.0 -
£40K - £60K wage is way above average.
Lets talk about average wages in the UK.
Someone with average wages has always been able to buy a house with a little deposit.
This is the norm, at the moment house prices are inflated compared with average wages.
Not in London I had to move 30 miles from London in the 70s and you needed a 10% deposit then.0
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