Hiya!
Mattj74 - You're on the right track with that - the housing 'demand' is coming from those already a few pegs up on the ladder - first time buyers numbers are dwindling around the property hotspots all over the UK - It's not just confined to the South East anymore.
In addition, there's more and more people who are buying with 'close' friends and even family members. This has been happening in my (Indian) community for generations and only recently has 'western' cultures begun to do this simply because of the high prices of everything and for the want of at least being on the property ladder!
TenthPlanet - you're theory is quite correct, the 'sums/finances/deals/income' just don't add up - it's a ludicrous situation and one thats not likely to change. We already pay some of the highest prices in the world for a comparitively lower standard/quality of living (compared to other 'western' nations) and I think it's pretty sad. What kind of future have my kids (when I have em!) got ? looking in a property paper and finding a studio being half a million pounds on a average salary of by then amounting to maybe £30-35K? - It just means I'll have to work to pay off and upgrade on the property ladder and hope really hard that by the time I'm 60-65 I've paid off the mortgage so as to sell and be able to put down a large deposit for my kids place. And I dread to think if I have 2 or 3 kids !
Although they do say 'what goes up must come down' and historically that 'should' happen. There HAS to be a housing price 'correction' at some point. It's a double edged sword though, if prices do come down a bit, it'll be a little easier for 1st time buyers, but current owners will be paying the same for something worth less than before. Then it also means there'll be less to 'sell off' when older, unless there's another (predictable) price increase frenzy say in 15-20 years time.
Maybe i'll buy somewhere in the UK thats still 'relatively' cheap.. or as I'm wanting to do now.. buy abroad.
oh look, now I've got to go buy fuel for the car which is another rip off! - dont even get me started on the price of other goods we pay through the nose for!
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- I'll shutup now....
Dennis! West 'blimmin' expensive London & Slough UK!!