House Prices

[wendigo100]

Meanwhile debt goes up and up...

[Bagpuss]

And if the BTL owners have to sell them off, then the prospective tenants will find fewer places to rent and will have to buy (the very same houses) so demand will not slump.

If need be the Government will "help" needy would-be buyers, i.e. take more money from those who work, to give it to those who buy houses, so that they can give it in turn to those who sell houses.

But most renters cannot afford to buy. There has always been house price slumps as soon as expectations fall and they are falling.

[_V_]

http://news.bbc.co.uk/1/hi/business/6274447.stm

Mortgage lending fell 10% in December, but was still at record levels for the month, figures showed.

Homebuyers borrowed £29.4bn from banks, building societies and specialist firms, the Council of Mortgage Lenders (CML) said in its monthly report.

This compared to £33.1m in November but was 8.8% higher than in December 2005.

The CML predicted that high prices and demand for homes would continue and that mortgage lending would top the £346bn that was borrowed in 2006.

That figure was 20% up on the figures for 2005.

Up, up and away!

[scooterscot]

But most renters cannot afford to buy. There has always been house price slumps as soon as expectations fall and they are falling.

I rent at the moment would not want to buy in the south too much boom and bust. Our house in Glasgae is let and suffice to say there’s never been a crash in the motherland for the last 78 years.