House prices will INCREASE when Osborne's £130bn mortgage help scheme kicks in

eelsoup

I'm still sceptical. In the longer term, the relaxation of planning regulations will enable more houses to be built, offsetting demand, resulting in price stability, or slow real-term falls relating to income. Certainly across the younger ranges of the age demographic, there isn't the money to support house prices at their current level.

Aside from this, the money being traded between people who've owned their own places for a long time and benefited from rising prices isn't really real money - these people haven't had to earn it. The younger generation don't have this money, and soon it will be being spent paying for care homes etc, rather than going back into the housing market.

eelsoup

moneyinmypocket wrote: »

House prices will rise no doubt, looking forward to it. I hope they sky rocket and I get richer cha Ching

How does this help you? Unless you're planning on selling your house and pocketing the money instead of buying another, any gains in value are immaterial.

Also, let's say that house prices increase by 30% over 4 years. You want to buy a bigger place. The price differential between your current place and the place you want to upgrade to will have also increased by 40%.

grizzly1911

eelsoup wrote: »

The younger generation don't have this money, and soon it will be being spent paying for care homes etc, rather than going back into the housing market.

If the money is spent and or passed on it will be recycled and eventually back into housing. It will in a diluted form for m no doubt and not necessarily through owners occupiers.