House Price Going Up....
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Apparently house prices have gone up again! Have you struggled to buy in the last few years because of it?
We bought a year and a half ago and it took us a couple of years due to covid, price rises, mortgage rates and houses going wayyyy over asking.
It's all about supply and demand so even when people are becoming poorer overall if there is limited stock available with more buyers than houses then prices can still go up however I feel the economy is headed in a very bad direction still and we are approaching a huge financial crunch so I can't see house price inflation lasting too much longer.
I saw this news report today;
www.bbc.co.uk/news/articles/c87zgx42m5go
I noticed within it that property rent had risen on average 9.2% but that figure hides the fact that many might have rental price agreements for a certain time as part of their contract so there will be people just starting to rent a home who have paid far more than 9.2% increase over what similar properties were rented for previously. Maybe a 20% increase or possibly more. 9.2% as an average is a huge increase.
The increase in rental prices means less disposable income so less chance of raising a deposit to buy your own home, its a vicious circle really.
China is the complete opposite with massive over-supply of property even to the point of buy one get one free properties. I only mention it as it shows the two extremes between extreme under supply of housing and extreme over supply of housing.
We bought our first house 9 years ago. We just bought a simple 2 up, 2 down. It cost us a bit more because of the post code area, it was close to a big city. When we moved almost 3 years ago we got an excellent price for it, we could have gotten more but we weren't greedy. We had to go over the home report value for the house we bought but we were lucky that we could do it and the area we moved to hadn't gone crazy with houses going over home report values, unlike the area we moved from.
We made a lot of sacrifices to buy our first home. We did the same when buying our second. House prices are crazy in some areas.
Up and up and up ever so.In London you need to be an Oligarch to get on the property ladder.Nothing much short of a million or under six figures where I live and private rents in excess of £500 a week.
Problem with house prices rising means rents will go up even more, they are already at ridiculous levels
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