MSE News: Funding for Lending scheme scrapped for homebuyers

kingstreet

They have risen dramatically in recent times in areas with chronic shortages of supply.

Too many buyers chasing too few properties, hence prices increase.

Outside London and a few other localised hotspots, there is no great house price inflation. When demand grows in other areas, pent-up supply from those wanting to move for the last few years but with no confidence to market, will eat up the excess demand preventing prices from growing too quickly.

London is a one-off, but commentators are treating it as being representative of England as a whole, which it isn't.

Seabee42

There was a massive increase in regional house prices under the last labour government, one of the reasons for this was the movement of government jobs out of the south into the regions and of course the massive increases in government jobs outside the south.

Generally speaking outside the south government jobs pay a higher average than the private sector.

One of the reasons why the house price recovery has not been uniform in the last couple of years is whilst there has been private sector job creation (low paid etc) there has been a reduction in higher paid jobs both in the private and public sector. Sadly government spending has not reduced at all in this time. So its a very funny austerity with cuts but no actual decrease in spending.

Lastly there has been massive inward migration to the UK over 5m people in a very short time and of course we have not concreted over enough of the countryside for them yet. Whilst these people have generally not bought homes they do rent and there has been a massive increase in buy to let investments.

HAMISH_MCTAVISH

JournalismStudent123 wrote: »

Could anyone also fill me in on why house prices have risen so dramatically?