ZCT
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I think when it comes to the UK it boils down to space. There are lots of laws in place in the UK that prevent the kind of urban sprawl that happens in America. Over here towns and cities just keep expanding outwards, new suburbs just spring up in fields on the outskirts of cities and eventually cities end up almost merged together.
Having less space in the UK they have green belt laws enacted to prevent this kind of urban sprawl so there are only so many places to build new homes. This ensures that land with planing permission to build is at an absolute premium and so the land itself is always increasing in value. While the land is in demand like this there will always been an upward pressure on prices.
Frankly it is one of the reasons I left the country. I purchased a tiny little flat in a town in Gloucestershire. It cost about £41K. Three years later I sold it for £82K. Now it was a nice flat in a nice area, but here in America where I live now £82K would buy me a really nice 2,000 sq ft home in all but the most expensive of areas. Whereas in the same part of England I recently noted that there were two caravans with less than 400 sq ft being sold for £55K each, and the land it was on had to be rented! |
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jojo
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nothing abstract about it, basic supply and demand the vast majority of people still dont own their home less than 50% do, Since the end of WW2 people have desired to home their own home. Demand is simply outstripping supply.
The more abstract answer if you must have one is Letting Companies and individuals are buying more and more houses which is artificially keeping the price high. They hope eventually people will just rent as the price is too high to buy meaning the letting companies have long term renters, and make more money |
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taketwo
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oil and job are hemorrhaging to India and China |
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RRM
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There is a lot of pressure on the young nowadays to be homeowners. Thier parents are even willing to increase thier own debt to help with deposits etc..this is the key, people are willing to take on more and more debt in the belief that if everything goes wrong they will have enough equity to pay it off and no harm done.
First time buyers today don't rememeber the early nineties and the price crash of housing, I'm not suggesting that will happen again but they have no idea of caution because all they have ever seen is double digit annual growth. |
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on the wagon
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i,m not an abstract thinker but please could i linger just a little while ? pretty pretty please ? I,ve nowhere else to go ! |
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black_eyed_dee
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2 things.
1) demand: the population is growing in the uk as immigrants flood in escaping natural disasters, wars and technological ruin in other parts of the world.
2) inflation: while inflation is kept artificially low by the banks, mortgages are easily sold to poor unsuspecting people who can just afford to make the re-payments. As soon as the inflation rates rocket, many people won't be able to afford their repayments and hence house prices will fall, negitive equity will be a buzzword once again and many properties will become available for sale after reposession.
Welcome back the late 80's!!! |
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Sutter-Cane
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Inflation = Money and people becoming more worthless.
(The House prices are increased so to reduce a deficit of money in the economy)
ie: In 2000 a house may have been worth about £70k, its now worth £200k - this means that if you earned £25k in 2000, your comparative income is now about 35% of what it was then... |
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bambam
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It may be fuelled by the people who benefited from the big boom a few years back, they ended up with a lot of equity and could afford to move up the ladder. That and first time buyers desperate to get on the ladder all clammering for properties before they could no longer afford to buy.
Greedy estate agents don't help either, but a property is only worth what someone is prepeared to pay for it.
And, you can of course now borrow more than you can really afford to pay back. |
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mjsaint67
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This country was once run by the landlords. It is going the same way. only now it will be landlords from abroad who run this country through Business. The majority of "english" people now earn very little and their wages will not allow a house purchase.
Good luck to those who keep on buying up more properies than they actually need. I hope the housing balloon bursts, maybe then we can all have a place we can call "ours". |
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Eve
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Well, inflation is part of the answer as prices of pretty much everything continue to grow steadily. With the exception of new technologies (gradually becoming old) and other man-made products, most prices do go up most of the time. The price of building materials and of skilled construction workers also rises. This affects property prices.
Added to it is, I think, a growing feeling/fear that resources are finite. Even though we might not be explicitly aware of this fact, I think it does affect our estimates of things such as houses and land. In the UK, as well as also in any EU country, there is a limited number of plots for agriculture or for building developments. If the population is growing or if clients more often choose bigger places - then naturally, there will be a demand and prices will rise. Prices can not be expected to fall, unless a serious crisis (economic, climatic or, God forbid, war) causes a serious shift of the population. |
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dollysdress
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people are willing to pay the prices supply and demand if noone brought them the prices would have to go down |
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internat y
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you have to look at the world economy as a whole. property all over the world is increasing and with the world becoming a village more and more access is available to investers. it is becoming a standard to measure ones wealth. the more the shortage the more the rent value and investment of the property.
In the u.k. alone more people are splitting up, single people are leaving it longer to get married. with the common market more people are moving to this country.
a lot of people are also falling behind with mortgage payments. wait while there is a recession the prices will drop like a stone never panic !!! |
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nemesis
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1. Shortage of affordable housing.
2. Innovative money market offering products (e.g. long term, interest only mortgages) or being more flexible (e.g. lending greater salary multiples).
3. Immigration, especially with the EU enlargement.
4. Low cost of borrowing.
5. Buyers willing to adapt to a changing market e.g. by clubbing together or taking greater risk. |
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bernard
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we are an island with a growing population. there simply isn't enough land. Also, people don't need to sell (as employment is high), so that keeps the supply down and price up.
sorry if that isn't wacky enough. |
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Harley D
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The housing shortage. |
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garethmonkey
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So Less and less people can afford them and therefore have to rent. So the rich get richer whilst the poor get into more debt!
Thank god I'm on the ladder!!!! |
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azlan m
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all the countries prices is still going up.I live in Malaysia.A terrace house now is about RM 700,000(i dont know what is the price in UK you must convert yourself) |
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saracen99_99
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who cares ??? ive got property here in the uk and abroad and thy are al going up daily, which means more money for me, yahooooooooooooooooooooooooooooooooooo |
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