Rosanna : someone was complaining the other day no matter how hard he worked there isnt enuff to pay his bills and it was getting him down

Flying kiwi: the whole dam system is et in favour of the rich tories.

Rosanna: this younger generartion will never never own a home, unless they are on a massive wage.

I would have answer this in the room… but was a little worse for ware after England’s win this evening.

It is the governments fault but not for the reasons you think, its that old chestnut interest rates.

The primary driver of prices, not physical supply and demand. You could literally pave the entire country over and put rabbit hutches for humans in every corner. House prices might fall – but they’d still cost more with interest rates at 2% than at 10%.

Let’s say you can afford to pay £1,000 a month for your mortgage; if interest rates suddenly plunge to 2% from 10% (and let’s assume it’s not because there’s been a massive crisis, which clearly is the only way that this scenario could ever happen), you’ll be able to borrow much more money than if interest rates are at 10%. In other words, £1,000 a month gets you a much bigger mortgage at 2% compared to 10%. So off you go into the market, wielding what looks like absolutely massive amounts of buying power.

Everyone else has the same increased buying power. So the same house you wanted to buy when rates were at 10% is still the same house when rates are 2%. But the amount you can afford to pay for it has shot up, so the house price shoots up. It really is that simple.

https://moneyweek.com/investments/property/house-prices/602971/why-are-house-prices-so-high-and-what-could-make-them-more

So all we have to do is put interest rates back up and this will fix the problem right?  Its been tried  in the UK back in the 1990’s leading to thousands losing there homes or negative equity housing trap for many others. And no Tory governments wants to repeat that mess.

A poor man is like a tightrope walker, one slip and you’re dead. 

I’ve always said there needs to be a return to personal borrowing controls.  They were taken out back in the 1980’s by Thatcher’s government ands its lend to all kinds of misery.   Personal debts are at an all time high.  Student loans, credit cards and more.   This madness needs to be stopped.

In the mean time the UK housing market is doom to repeat the “Irish property bubble” at some point in the near future.  With covid deaths standing at over 100k just in the UK, housing markets maybe flooded with desperate sellers dumping probate properties.