First Time Buyers go on strike over extortionate house prices

Its been quite a while a-coming. Here in the provinces house prices never went anywhere as high as they did in the home counties or the M4 corridor but in relative terms they are now just as unaffordable. A 2 bed starter house (New/Recent build) is of the order of 10x the local average skilled worker's wage.

The point is that for 3-4 years they have been offered for humunguous prices but they aren't actually selling. Presumably pressure is building up somewhere, more and more people who desperately need to sell can't, ditto people who desperately need to buy.

The big question is what will act as the initiator to the chain reaction that prompts a run of competitive selling, if we knew that we could better anticipate it? A precipitate increase in interest rates brought about by the need to end the no longer possible to ignore consumer credit boom? An oil crisis? A falling pound?

Whatever, the instability is there, the pressure is there, AFAICS it's just whatever comes first.

DG

Reply to
Derek *
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The real problem is the price of land, because of the lack of new building sites. If Planning Permission were to be abolished, overnight prices would fall considerably, supply would rise to meet demand, and the market would stabilise.

It will not happen, of course.

Reply to
Terry Harper

And as I posted a while ago, this could well reduce demand, since the investment value of property would plummet. Couples with no kids may not find a 4 bedroom house with 3 bathrooms quite so attractive anymore. Second homes may lose their attraction as an "investment".

Getting rid of planning permission could result in *less* new houses being built!

No. Unfortunately.

Reply to
Andy Pandy

The Law of Unintended Consequences would doubtless come into play:-)

Reply to
Terry Harper

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