Good News For Those Struggling To Get On The Ladder.....

[ToraToraTora]

https://www.bbc.co.uk/news/business-66130798

[Untitled]

house prices have been pumped up ridiculously high for years and at huge cost to society… i hope they fall much further

[david small]

Still ridiculously expensive.

[youngmafbog]

Not really good news though is it. Its a miserly 2.6% on the year.

And of course it is just a market adjusting to higher interest rates, once the public have got used to 5-6% as the norm(which it is for any healthy economy) then is will rise.

[youngmafbog]

//house prices have been pumped up ridiculously high for years //

Basic economics, if demand exceeds supply then the price rises. Keep letting in more migrants (legal or illegal) than the infrastructure can stand then it will continue to happen. They all have to live somewhere.

[ToraToraTora]

I think it's just the start, once the BTL market start flogging wholesale because the Landlord rules are now prohibitive, they'll fall much further.

[Untitled]

the principal reason that demand has exceeded supply is because we don’t build enough new homes especially in the social sector for many years. this has been done deliberately because politicians do not want to lose the votes of homeowners.

[youngmafbog]

Nope, there simply are not enough houses to give everyone a home, net migration was over 500K last year and whilst many were families a good proportion are not. Unless houses are built in excess of that number then prices wont drop, but building that number needs new roads, gas lines, electricity generating stations, doctors, hospitals, schools and so on that cant be built that quick so we wont build the homes.

Whilst the selling of properties will cause another blip this will be temporary, the Banks are busy building property portfolios and that will snap up the slack.

Either way it is still supply and demand that will drive the price.

[youngmafbog]

What drivel untitled.

It is net immigration that makes homes in short supply. See above3 why they cant just build houses.

[Untitled]

it isn’t drivel. housebuilding is at its lowest level since the second world war and has been like that for decades. before that we were at the lowest level since the 1920s. this situation is not happenstance it is manufactured… it is the long term consequence of the public housing selloff in the 1980s and the political decision to inhibit growth in social housing.

https://fullfact.org/economy/house-building-england/

https://www.localgov.co.uk/Housebuilding-set-to-fall-to-lowest-level-since-WWII/55697

https://www.independent.co.uk/news/uk/politics/england-house-building-record-second-world-war-conservative-government-home-a8706776.html

this is intentional. homeowners do not want their homes to lose value, landlords do not want to lose rent and politicians do not want to lose their votes.

[Untitled]

the whole idea of treating homes as assets has caused this disastrous situation and it won’t go away until these ridiculous unsustainable prices inevitably crash through the floor