House Price Inflation The Only Good Inflation ?

[mikey4444]

http://www.bbc.co.uk/news/business-23983828

Once again, we are led to believe that a rise above inflation is good for houses but bad for petrol, gas, electric, food, etc. Never understood this and still don't.

[sandyRoe]

They're not taking all our houses now?

[BRIGHT SPARK]

House prices are driven by two factors only....supply and demand.

[jno]

not so much overpopulation as people having more than one house.

[FredPuli43]

Never a good thing. When I was 22, a new flat in Ebury Street, SW1 was £11,000 and the top flour flat was £17,000. The first house I bought, at 33, in Manningtree ,Essex, had 3 bedrooms, good garden, and extensive views over the River Stour . It cost £27,500. I could afford the mortgage on that ; I earned over £10,000 a year.

Now, nobody of my age then could afford the mortgage now; the Ebury Street flats would be a million plus, the Manningtree house about £400,000. What person of 22 earns £3 million a year? What person of 33 earns £135,000 ? ( That's taking a mortgage at 3 times earnings) And that is universal.

[Peter Pedant]

Jake thanks for the link useful
hadnt realised the upper bound was 630 000

also it shows that the recent rises have not exceeded 2008 [wh I thought it had]

[Peter Pedant]

Fred London prices have always been astronomical

11 000 for a flat in sudduv 1850 was a helluva lot of dosh

my first mortgage was £12 500 on a annual salary of £ 5165 - but the seventies were a decade of inflation +++ - house prices tripling in 18 mo in 1974
which I rather missed out on but you might have caught.