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I'm smack bang on the average salary and not sure if I'll ever be able to get out of renting unless I leave London
Luckily I don't have a problem with leaving London.
i was quite obsessed with all this a couple of years ago, and my general thinking is that when (if) the economy gets a bit more settled the government will try and engineer a very slow, very gradual decrease in real house values. So they'll keep the same nominal price, but will go down in relation to everything else (as everything else experiences inflationary rises (including wages)). I think they'll do this by, when the banks are all more stable, have built up their cash reserves, and have been split into risky / less risky bits, withdrawing all the quantitative easing money from the banks, destroying that,so that none of that money can go into houses, thus slightly stifling the mortgage supply whilst not suffocating it, thus creating a plateau of nominal house prices. Maybe some kind of mega tax of foreign homeowners as well to discourage all that money flooding in and inflating the market.
i don't know what i'm talking about really
i want 2 enjoy halloween so i`ll be leavin the doors unlocked gud luk 2 u trik or treat
like they've got some clever over-arching plan to make things better for everyone.
All the evidence points to "no".
Can you see it yet etc.
the main problem is that there's a huge shortfall in the number of properties built vs the rate of household formation, largely because the state stopped directly constructing homes and provision of everything is now left up to the private sector, which has been chugging along much like it always has.
there's little chance of it equalling out or slowing down because there's such a backlog that demand will always outstrip supply, and there's little impetus beyond government/third sector subsidies for the private sector to target anything other than whatever narrow band it views as the most profitable at that time.
the mortgage supply has been pretty stifled for the last five years and whilst prices have plateaued elsewhere it doesn't seem to have made much difference in the south east.
no party really has a plan to change this. the conservatives are following the same ridiculous logic about "red tape" and "planning logjams" and some up-in-the-air idea that if you let the sector build and build prices will come down, ignoring that the private sector building levels have remained fairly consistent now for a long time and that often they build completely not what is needed. i know labour's been making a lot of noise at their conference this week, with that target of 200,000 (which as an annual figure was reached under the last labour gov't: http://www.insidehousing.co.uk/the-cost-of-living-crisis-is-the-housing-crisis/6528713.blog ) and giving councils new powers and such, but their strategy still seems to be entirely based on the idea that the market will provide for all and it doesn't and never really ever has.
The private sector alone has never, ever been able to provide enough housing that is of the right type, the right quality and in the right location.
This is an interesting subject