Wednesday, December 06, 2006
HOUSE PRICES :-(
I find it depressingly interesting to look at the housing market these days. It is fine for people like me who are already on the property ladder but I am struck by the vast difference between the increase in salaries and the increase in house prices since I bought my first flat in 1993. Then André and I bought a one bedroom flat in the West End of Glasgow in Havelock street. Although we bought it together, I could have bought it alone as the selling price of £45000 was more or less exactly what the bank was willing to lend me in a mortgage at that time. I was looking at the GSPC just now and a flat exactly the same as mine in Havelock street is now on the market for 'offers over £110000'. Anyone who knows the West End knows that means it will go for approximately £143000. Working fulltime the maximum I would now be lent is around £87000. So in just 13 years single publishing editors have been completely priced out of a housing market that was easily within their reach just a few years ago. I wonder if my kids will be able to leave home ever if this pattern continues?
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3 comments:
You sound so altruistic... But would you have been as concerned if it hadn't been for the immediate need for you and me to buy something large enough for 6-7 people? ;-)
Anyway, I wouldn't be too concerned for your kids. House prices tend to be fairly stable in the longer term, which is another way of saying that it's likely there's be a housing crash before they grow up. :-/
Am not sure what planet you are living on if you think anything short of a lotto win will ever provide such large accomodation. As for house prices crashing - my parent have been in the same house for 34 years an it hasn't crashed during that time :-\
An alternative to a crash is constant prices, not rising with inflation. But of course, there are always areas and specific houses that actually do rise in price. Hmmmm, I probably should dig up some statistics and blog it.
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