The nineties was a slightly different scenario
My parents bought a house in 1983 for around 20k. Before the credit crunch it was worth 250k. In those last twenty years, there wasn't suddenly ten times more people wanting to buy that house. What happened was steady devaluation of the pound, which led to more money being available in loans, which led to house prices going up.

Then the whole buy to let thing took off and pushed the relative value up higher. There are several reasons why buy to let is going to fail and three of them are lack of credit, increasing interest rates and Capital Gains Tax.

The lack of credit is going to drive the drop in relative house prices, the South East isn't immune to that. As interest rate rise, as they will have to if they're going to stop inflation more and more people are going to be in the same position as they were three years ago, only this time there won't be the available bail-out money because interest is already at rock bottom.

The only way house prices aren't going to fall is if they allow inflation to occur.
( Kroney, Tue 17 May 2011, 13:16, 1 reply, 15 years ago)

House prices across the rest of the UK have been falling
London is it's own special micro climate, because the people that work in the city earn stupid money and so can afford stupid prices for shitty little flats just so they are close to a tube line.
(Bazongaloid, Tue 17 May 2011, 13:26, Reply)