oh dear: House price recovery 'could take ten years'

[Doggy Styles]

I'm not so sure 3-4 multiples of income are as valid today. Isn't a multiple of disposable income a better measure? I mean, twenty years ago people had to plan to buy white goods, whereas now China churns these out for about tuppence. Just as you can't have to much credit floating around, too much unused disposable income has to be mopped up by something too, shirley?

I don't buy white goods very often.

And twenty years ago I could afford fill up my car with petrol, use the gas-fired central heating during the winter, and have electric lights on in the evening.

3-4 times salary still sounds about right, plus deposit.

[Pickle2]

If estate agents are so clever and can predict the future, why didn't they cash in and close up a year ago at the top of the bubble?

I think the foxtons guy did exactly that!

[Fred Bloggs]

For some years I think the extra costs due to weak pound would be a much bigger concern.

For us too. Next year it will be a holiday in the UK instead of the US or Europe.

[AtW]

House prices were driven by reckless lending - very few people can buy houses upfront all-cash payment, if bank's won't lend more than 3x salary (or disposable income) then only other sales will be from abroad (not many) and BTL to those who have cash (not very many either). If banks were not lending at high multiples house prices would have never risen so much, well, that and low interest rates in US/UK that help inflate the bubble.

[BrilloPad]

House prices were driven by reckless lending - very few people can buy houses upfront all-cash payment, if bank's won't lend more than 3x salary (or disposable income) then only other sales will be from abroad (not many) and BTL to those who have cash (not very many either). If banks were not lending at high multiples house prices would have never risen so much, well, that and low interest rates in US/UK that help inflate the bubble.

Indeed. The Greenspan put caused current issues. Trying to abolish the natural boom/bust cycle by banning bust. You just cant fight nature.

That and 125% mortgages.....

[DiscoStu]

We can take some small comfort from the fact that the value of CyberTory's house remains unaffected.

[BrilloPad]

We can take some small comfort from the fact that the value of CyberTory's house remains unaffected.

can defy the laws of gravity