/biz/ - Business & Finance

>>55332661
We're looking at a situation where the high/mid end of the market gets fucked catastrophically, without any corresponding relief for the low end (inc. 'starter homes') and renters. So guys like this are still fucked: >>55332817 (yes, that is the lower end in London).

Why? A variety of factors. Zooming out, we have high-end property buyers (Russians and Chinese) leaving due to a government that has proven itself willing to sanction/confiscate property amidst rising geopolitical tensions. We've also had a general decline in the quality (education/wealth) of immigrants (professionals who go for mid-level housing) along with a corresponding exodus of skilled native British. At the same time, we have a million new arrivals this year who will all go to already overcrowded areas, particularly London, and at *best* might work in a kebab shop, delivering Uber eats, or as a HCA. They are going to continue to swamp low-end/rental, force demand, and hence prop up prices. Most importantly, everyone in the middle class has purchased the most expensive house they could possibly afford (due to seeing it as a guaranteed investment) and will all be needing to downgrade if they cannot cope with their current mortgage- a move from mid-end to low-end.

I don't know how it will play out politically. It looks to be the death of the Tory party- although Labour in it's current form will be unable to resolve. If money is printed to prop up the market, inflation will be unleashed in a manner not seen in the first world since the decade post-WW2, and it is questionable to what extent Britain will remain a market economy. It could honestly be a watershed moment for this country.