The UK housing market

[macafee2]

Originally Posted by richw

It is more than supply and demand.

Look at the willingness of banks to lend money. Often too much, to people who cannot afford it.

Blair and Brown rocketed house prices from about 2001-2007. They removed housing from the official inflation measures, so claimed we could keep rates low. The UK economy looked marvellous as people with houses were borrowing money against them to spend on nonsense.

I never understood why housing should need to be provided by the state. Surely. private rents could cover this? Of course, another crime of the last 30 years is housing benefit (now LHA) which also inflates rent and house prices.

I wish prices would divide by, say, five overnight. Then my kids might be able to buy one.

Big mortgages are silly... It would be better for all to enjoy the money!

How old are your children and what area would they be looking to buy?
Oh boy, there are a number of reasons why the state needs to provide housing, sometimes temporary and sometimes permanent. Refugees, those to sick to work are a couple of examples, those that lose their home for one reason or another and perhaps cannot get work so cannot afford to rent.
Some say that rental properties add to the housing shortage.
I thought housing benefit was now capped and this had lead to people being evicted as they cannot afford the rent.

If a big mortgage gets you the home you want, is that not enjoying your money? I've driven down a few roads to see the expensive car on the drive yet thought omg what a dive of an area to live. People enjoy their money differently. The car is much more obtainable then a house when funds a re limited.


macafee2