Came to this a bit late so I hope I'm not repeating anything.
The purchase price of property doesn't matter, it's the repayment details that do the deciding for a generation that lives on credit. It overtakes all other factors in the equation.
The rates of interest on mortgages are largely irrelevant over 25 years. Anyone remember when rates were 15%? The rates on offer are not just a result of the housing market variations (there is no such thing) and there are probably five different periods of varying affordability in that time. That's why 'the market' picks up when rates are low.
Personal standings vary probably just as much. Interest rates are entirely dependent on the availability and cost of lenders borrowing capital on the international markets.
It's the BIG BOYS that control it - according to the amount of land made available by landowners. Across the spectrum of the economy, this bears very little reflection of the true value of any asset. Those levers are carefully guarded.
Anyone see that news clip about the painting by Banksy that auctioned for £18 million? As the hammer went down the picture which was mounted on a trick frame, dropped down to be destroyed through a shredder. By contrast, houses are bought with desperate emotion.
Many people equate a personal desire with a mistaken idea of an enhanced social approval growth, hence Semi/Detached/Landed/Post Code and borrowing- to-the-hilt (and speculating above that).
I forget who said: 'It's the economy, stupid!'
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