Why is property unaffordable for even the relatively well-off among the population?

princeofpounds

Why not use the 2008 peak of $147

Because surprisingly, although there was an uptick in inflation around 2008, despite the rise in oil prices inflation ex-energy remained remarkably subdued.

There is a lot more to inflation than just the oil price - it is as much a monetary phenomenon as it is to do with the physical tightness in supply of any goods. I only posted the oil price history above because the CPI measure was ex-food and energy and it just added a bit of extra context.

GDB2222

ukcarper wrote: »

Funny that I bought my house in 1985 for £60k and would be lucky to get £300k for it and before you say it must be in some undesirable place it’s in Surrey.

Was it a new-build when you bought it?

ukcarper

GDB2222 wrote: »

Was it a new-build when you bought it?

No in 1985 average house price was about £31k now £166k

GDB2222

ukcarper wrote: »

No in 1985 average house price was about £31k now £166k

Yours would be 321k if it had moved in proportion, so you are lagging about 10%.

Gorgeous_George

Why...?

1. Not enough houses. This could be resolved by building more houses or not giving homes to every young (choose your own word) that gets pregnant rather than getting a job.
2. Too many under occupied houses.
3. The country cannot afford a propery crash. So, the government props up the housing market while eating away at the value with inflation and time. Unfortunately, as the Tories prefer a low wage economy, houses are likley to become more attractive as an asset.



Answer: Build more houses.

GG

Gorgeous_George

Losing_the_way wrote: »

Nowadays, is the having it all now attitude more responsible for the feeling of un-affordability?

Only in part.

I know there are people who cannot save but can afford £75 per month for a mobile phone but there others who earn £20K and live in expensive areas where a 2 bedroom house would cost 6 x their salary.

My advice would be to move somewhere cheaper.

GG

ukcarper

GDB2222 wrote: »

Yours would be 321k if it had moved in proportion, so you are lagging about 10%.

Yours would be £263k just wondered why it's increased so much. The figures are from two different sources, as land registry doesn’t go back that far and obviously averages are just that.

Brallaqueen

Everybody, move to Wellingborough. You can get a mature semi detached 4 bed house for ~150k and be in London St Pancras in less than an hour.
Short commute, low house prices for FTBs, everyone's a winner!

http://www.rightmove.co.uk/property-for-sale/property-14147208.html

http://www.rightmove.co.uk/property-for-sale/property-26050570.html

4 bed terrace, less than 120k

http://www.rightmove.co.uk/property-for-sale/property-15943185.html

http://www.rightmove.co.uk/property-for-sale/property-14147208.html

GDB2222

ukcarper wrote: »

Yours would be £263k just wondered why it's increased so much. The figures are from two different sources, as land registry doesn’t go back that far and obviously averages are just that.

I meant that 10% is not much - for the reasons you just gave. So we're in agreement.

ukcarper

GDB2222 wrote: »

I meant that 10% is not much - for the reasons you just gave. So we're in agreement.

Sorry I’m old and getting confused I was referring to Lillie Munchkin’s property.