/biz/ - Business & Finance

>>23399015

Its complicated.

A short version is:
Al the stacie and deanos are bidding up the market out of retardation.
In January, if you went into any real estate agent looking for a mortgage with 5% down, you'd have found thousands of properties.

In April if you had went, you'd have found 20.
Naturally, all the stacies and deanos cant afford more than a 5% down. instead of being rational and waiting a couple years for lending to ease, they instead all started to bid on the tiny number of properties left for a 5% down. The demand stayed the same, but their supply was almost 0. Only real shitholes are going for 5% down now, and they are soared so high above market value due to all the stacies and deanos simply bidding them up.

for people with money, there have been numerous tax breaks, which has fueled some buying in general too.
Sadly, the UK's GDP and economy depends on house prices. They government will not let them fall. Notice how one of their first policies early this year, even before, furloug hschemes, was tax breaks on buying homes?
they know it too.

What this means for young people is that yes - house prices will never fall much in notional value of GBP much. however, down payments and lending will get easier soon. this is what the short term spike on shit houses caused deanos will end badly for them.