What it is going to be?

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    What it is going to be?

    Energy prices up, food prices up, inflation up, taxes up.

    What is going to happen to house prices? Are they to go up? Or we are going to witness something not seen for while?
    House prices going down/salaries going up?

    #2
    House prices will definitely without doubt be both going up and going down, different dates. As they always have. And most things.

    As has always been the case, which one when and how much dunno, anyone claiming to know is unlikely to be a reliable source for advice (no offence for anyone with a view...)
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Asset prices (e.g. most property, stock market) are going up and have been for some time. Basically due to government stimulus measures, increased money supply, low interest rates IMHO. Flats, for the most part, are probably the exception due to changes in work patterns and lifestyle aspirations.

      The asset inflation could easily reverse if interest rates rise. I think it would be a better and more sustainable situation if that happened. Whether it will, who knows.

      Rents, on the other hand... Fairly sure they are continuing up. Supply and demand.
      There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

      Comment


        #4
        The economy would benefit greatly from the money going into the economy not being stuck in illiquid assets. Clearly the government disagrees

        Comment


          #5
          Salaries will go up (demand is greater than supply).
          That will increase the cost of most things, as the higher costs are passed on.
          House prices and rents will increase, because, again, demand is higher than supply, but there is a natural cap created by wages (as people are paid more the ceiling goes up).

          All of which would normally cause inflation, so the higher values of assets are compensated for by a lower value of the money they're valued in.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Around 1970s, roughly 50 Years ago, it was possible to buy a new house for under £5000.

            This was a rocky decade. Widespread unrest and hardship on the one hand and a boom in home ownership on the other.

            The mortgage market took off and house prices flew. At the start of the 70s the average house price was £4,057.

            In 1974, the first microwave was sold and 4 years later the VHS video recorder meant we never had to miss our favourite TV programme again.

            Our average earnings climbed too. But this was when the gap between wages and house prices began growing wider and wider.


            https://www.sunlife.co.uk/articles-g...-then-and-now/

            Comment


              #7
              UK average house prices reached a record high of £266,000 in June 2021, which is £31,000 higher than this time last year. Average house prices increased over the year in England to £284,000 (13.3%), in Wales to £195,000 (16.7%), in Scotland to £174,000 (12.0%) and in Northern Ireland to £153,000 (9.0%).18 Aug 2021

              In financial year ending (FYE) 2020 (April 2019 to March 2020), the period leading up to the coronavirus (COVID-19) pandemic, median household income in the UK was £29,900, based on estimates from the Office for National Statistics (ONS) Household Finances Survey.

              https://www.ons.gov.uk/peoplepopulat...ancialyear2020

              Comment


                #8
                Originally posted by Anna1985 View Post
                Energy prices up, food prices up, inflation up, taxes up.

                What is going to happen to house prices? Are they to go up? Or we are going to witness something not seen for while?
                House prices going down/salaries going up?

                During past 50 years , house prices are up from £4K to £260K = 60 times.

                During past 50 years . job income are up from £1K to £30K = 30 times.

                So house prices are going up /salaries going down

                Comment

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