Why are house prices still so high?

adonis10

sevenhills wrote: »

Do Government build houses?


In the past councils have built houses, but these days its 95% capitalism, so its left to the private sector.
The planning system has obstructed house building for years.

If the area (Dorset) I live in is anything to go by, there won't be a shortage in a decade or two, quite the opposite as the town and surrounding towns are slowly being ruined by relentless flat and house building without the accompanying infrastructure. It is quite depressing to see block after block of (mostly) small and characterless flats and houses being thrown up.

Thrugelmir

Zero_Sum wrote: »

I live on a new build estate, and you'd be amazed at how many of the cheaper houses have flash cars on the drives. So id say many do chose the worse house to enable them to drive nice cars & have many holidays.

Cars on personal lease. There's another cliff edge in the future.

phillw

Cars on PCP are a problem as you never build equity.

snowqueen555

Changing demographics, so many single person households these days, and not enough suitable housing. A lot of people living in homes and not using the rooms.

Considering so many Local authorities now have to make profit with their own business initiatives, I would not be angry if they were to build and rent some property at normal market rates, it would allow then to make profit, yet also provide housing to the non social welfare sector.

My local council has invested millions of pounds into various businesses that are failing and draining cash rather than making it.

Rather than renovate old land and property, they are selling it off cheap to developers and losing assets in exchange for a quick buck.

Housing developers need to create more housing for single occupants, even if they are studio properties or 1 beds, is there a reason so many are student lets and not general building complexes?

lisyloo

snowqueen555 wrote: »

Housing developers need to create more housing more single occupants, even if they are studio properties or 1 beds, is there a reason so many are student lets and not general building complexes?

Housing developers need to make a profit for their shareholders.
I would guess that the type of property they are building is the type that either has a very reliable demand or is the most profitable.

I agree with your point, just pointing out the reality when your privatise housing provision without putting the necessary controls/quotas in place.

AG47

Why are prices still so high? When will the correction come?

phillw

AG47 wrote: »

Why are prices still so high? When will the correction come?

Who is to say they are too high? Maybe never.

Malthusian

AG47 wrote: »

Why are prices still so high? When will the correction come?

Go to housepricecrash.co.uk and ask the HPinCels, they're the experts.

Momanns

Another angle is that higher house prices = bigger mortgages and more lending. In turn, more credit on the books of the financial institutions the more they can then leverage etc. Any major drop in the housing market would have big consequences to these institutions and in turn the economy so I don't see it dropping but has slowed considerably which may last for a good few years.

Thrugelmir

Momanns wrote: »

Another angle is that higher house prices = bigger mortgages and more lending. In turn, more credit on the books of the financial institutions the more they can then leverage etc.

Perhaps after 40 odd years the bull market has finally run out of steam. All the factors that combined to drive rises upwards. Are now effectively heading into reverse.