So no higher than 2004 then!

ukcarper

Crashy_Time wrote: »

`91 was the epicentre of the council house sell off, so ownership was heading upwards then, the fall back now is simply that houses are too expensive and need to crash for this trend to continue upwards again. Excess credit has made houses too expensive and they need to crash (and debt be written off) before the banks could ever lend like they did previously.

Can't you see that if there was enough property in the increase in the amount of credit would not increase the price of property.

Crashy_Time

ukcarper wrote: »

Can't you see that if there was enough property in the increase in the amount of credit would not increase the price of property.

Pardon? Plain grammatical English please.


OK, I see what you are saying, it is the old shortage of property chestnut, looks like this could be a long painful debate.


BTW, we were talking about home ownership numbers and multiples of salary to buy the average house, what happened to that?

ukcarper

Crashy_Time wrote: »

Pardon? Plain grammatical English please.


OK, I see what you are saying, it is the old shortage of property chestnut, looks like this could be a long painful debate.


BTW, we were talking about home ownership numbers and multiples of salary to buy the average house, what happened to that?

10 houses for sale 11 people want to buy and in a position to buy price increased until only 10 people in a position to buy. If only 10 people want to buy no need to increase price. This explains why prices increase if there are not enough properties and why the average price to average earnings increases.

By the way social housing 20% in 1991 18% in 2011

Crashy_Time

ukcarper wrote: »

10 houses for sale 11 people want to buy and in a position to buy price increased until only 10 people in a position to buy. If only 10 people want to buy no need to increase price. This explains why prices increase if there are not enough properties and why the average price to average earnings increases.

By the way social housing 20% in 1991 18% in 2011

So why were there emergency measures put in place to protect the banks and keep house prices afloat?

ukcarper

Crashy_Time wrote: »

So why were there emergency measures put in place to protect the banks and keep house prices afloat?

That is not why interest rates were cut.

Crashy_Time

ukcarper wrote: »

That is not why interest rates were cut.

Many people may still want to buy, but house prices are being propped up by interventions like Help To Sell, why is that if it is all about supply and demand?

ukcarper

Crashy_Time wrote: »

Many people may still want to buy, but house prices are being propped up by interventions like Help To Sell, why is that if it is all about supply and demand?

Help to buy has helped many people buy but in London it has had very little effect and only a very small percentage of properties were bought using help to buy.

Crashy_Time

ukcarper wrote: »

Help to buy has helped many people buy but in London it has had very little effect and only a very small percentage of properties were bought using help to buy.

Many were not bought by cash rich locals either though were they? Many people buying into this price surge will have little incentive to stay in a collapsing market "sitting it out"?

ukcarper

Crashy_Time wrote: »

Many were not bought by cash rich locals either though were they? Many people buying into this price surge will have little incentive to stay in a collapsing market "sitting it out"?

The majority of people who buy property are buying homes or investors looking at the long term so I don't see them selling because prices are stalling for falling a bit.

Crashy_Time

ukcarper wrote: »

The majority of people who buy property are buying homes or investors looking at the long term so I don't see them selling because prices are stalling for falling a bit.

Many have BTL`s they can`t fill, second properties from before they got married or whatever, or property they have inherited. Many need to pay care fees, or really want to downsize, or think it is time they took that retirement pay out they thought bricks n` debt would set in stone for their old age. Highly unlikely that these types will hold the line when real drops start to be reported, they are going to bottle it straight away and chase the market down IMO.