Why are house prices still so high?

MobileSaver

David_Evans wrote: »

The only true way to compare house prices over time is to use the price in gold or silver.

How does that work when gold can fluctuate by as much as 27% in just a six week period?!?

James530

Good news I bring for u (kinda) some areas are more expensive (London)
But some areas are cheaper read below

Here
I did a bit of research on a few websites and lots of areas in Lancashire average price for most areas are 109,385
seems like one of the cheapest on the market (these days) compared to other places
Hope this helps

Milotti

Housing affordability in the uk greatly affected by restricted access to funding for smaller housebuilders and planning. Help to buy inflates and other issues people have touched on

sofarbehind

GreatApe wrote: »

Regarding parents gifting them wealth, the vast majority of uk born Brits will inherit wealth equal to or in excess of one fully paid off home

This is obviously true by the fact that the majority of the old own a home outright and cant take it with them when they die. They leave it behind as an inheritance.

About £200 billion a year, or around £3 trillion a generation is gifted by the old to the younger

And it is very widely spread out.
Even if you have poor parents and poor grand parents there is a 75% chance your partner/wife parents and grand parents are not poor

Plenty of people marry into wealth.
Some seek to marry into wealth and good luck to them, but most just stumble upon it

Simply put this is a very rich country with a lot of wealth very widely spread out but as individuals we are somewhere on a normal distribution. You might be on the poor end and only see that side of society but there is a wealthy end and a super wealthy end too.

I've seen both sides and Like yourself, 10+ years ago I had no clue to the extend of wealth that exists in the UK and I am not talking about the billionaires but those that have £500k - £5 million there are millions of such individuals

Thanks for this comment, it's very useful. As someone on the 'poor end' I wish I had understood this 15 years ago. Now I just have to work out what I'm going to do about it..

GreatApe

sofarbehind wrote: »

Thanks for this comment, it's very useful. As someone on the 'poor end' I wish I had understood this 15 years ago. Now I just have to work out what I'm going to do about it..

Well there are two ways to look at it

1: be happy that the majority do get hand downs
2: be sad that you dont and be resentful of those in group 1

#2 really does not help anything so I choose #1

As mentioned about a decade ago I was poor and I didn't even realize it
While I had an ok income about £25,000 at the time I had nothing else and of course post university I started out with nothing or actually negative net assets due to student loans

If you want to get better off there are only a few ways to go about it.
1: get higher paid work and keep getting higher paid work
2: start a successful business or work for yourself in some way
3: marry into wealth

If I had to advise someone I would advise #3 because it is the most likely and if you really try it can be even more effective than #1 & #2

One of my friends a true working class boy married into wealth will probably get £10 million + he and his kids are sorted I laugh when I think of it I tried #1 & #2 and worked some years 363 days of the year and I am only at a fraction of his net worth and inheritances.

sofarbehind

GreatApe wrote: »

Well there are two ways to look at it

1: be happy that the majority do get hand downs
2: be sad that you dont and be resentful of those in group 1

#2 really does not help anything so I choose #1

As mentioned about a decade ago I was poor and I didn't even realize it
While I had an ok income about £25,000 at the time I had nothing else and of course post university I started out with nothing or actually negative net assets due to student loans

If you want to get better off there are only a few ways to go about it.
1: get higher paid work and keep getting higher paid work
2: start a successful business or work for yourself in some way
3: marry into wealth

If I had to advise someone I would advise #3 because it is the most likely and if you really try it can be even more effective than #1 & #2

One of my friends a true working class boy married into wealth will probably get £10 million + he and his kids are sorted I laugh when I think of it I tried #1 & #2 and worked some years 363 days of the year and I am only at a fraction of his net worth and inheritances.

Oh I'm really not resentful, waste of energy as you say. But I would like some security myself.

Interesting cos I think 3 is the least likely and least appealing for me, but then it depends on how attractive you are. :rotfl: I've been going with 1 again but would like to try 2 as well.

PasturesNew

sofarbehind wrote: »

Thanks for this comment, it's very useful. As someone on the 'poor end' I wish I had understood this 15 years ago. Now I just have to work out what I'm going to do about it..

The only way out is "marry well".... and it's lucky for you you've timing on your side... tomorrow is a day to declare deep love for somebody in your affections.... just find somebody with a fat wallet who you can send a Poundland valentine's card to .... but don't f4nny about with that secrecy stuff... bung your phone number inside the card in big clear numbers, so they can't miss it

charlotte1994

Goldman2020 wrote: »

earning the basic UK salary (which I believe is in the region of £27,271) .

I wish I was on £10k more a year!!!! Houses ar quite cheap in my area, but help to buy does nothing. 90% of houses are old, 98% of affordable houses are old houses, 100% of help to buy is only for new builds

Goldman2020

I cannot comment on the rest of the UK however I believe there is a housing crisis in and around London and some of the near Home Counties.

Buying a first property whether it is a one bedroom flat or a small house in and around London is out of reach for many especially the young.

Moving away from London for the sole purpose of buying a property is an option but not one that everyone can easily take up for whatever reason.

AG47

Yes there is a housing crisis, the problem is property is priced too high.

It is a reasonable question to ask, why is property still so high?

Whatever happens after brexit there will be more selling pressure and property will hve to fall.