[likpok]

Yeah, without new stock the house price falls based on the mortgage affordability. So the nominal price is lower but the overall price is the same. Works well if you’re paying cash, I guess.

But of course most people don’t have to sell. They may sit on the property to avoid taking a loss. That makes inventory tight, and means prices won’t fall as much as they otherwise would.

[tristor]

This is the same situation in the US. Demand for housing has outstripped supply, and until we correct the supply situation, all that changing the financialization does is to make housing a better and better investment for entities flush with cash. Housing shouldn't be an investment in that way, but that's a different conversation. We need to be driving supply.

[theironhammer]

Agreed. There are many ways for the rich to get richer. Housing shouldn't be one of them.

If we've got money for Ukraine, we've got money for housing.

But then there's ideology and beliefs. There lies the problem.

[iso1631]

Of course they won't fall. The cost of property is set to extract every extra penny from the working class as possible - either in mortgage rates or rental costs.

The owning class who say "not in my back yard" win regardless, because of the supply problem. And they're the ones both Labour and Tory parties kow-tow to.

Want to solve every problem in the UK? Well that's pretty much impossible after 50 years of mismanagement. But allowing housing and getting rid of other planning obstacles (for say north-south power interconnects) is probably the biggest quickest cheapest thing you could do to improve it. But that would upset land owners.

[theironhammer]

Build more yes. But you have to prevent "investors" from buying it all up. City of Vancouver built loads of houses but "investors" bought them all up. Vancouver is ranked the third most expensive city in the world for housing.

Also, aren't there plenty of unoccupied homes in Northern England towns? But there's no jobs. So there lies another problem. Supplies of houses where there's no jobs, and vice versa.

[frumper]

It sounds like they didn't build enough.

[hawaiianbrah]

I think in America prices fell somewhat over the last 8 months but with mortgage rates spiking much as they have, overall things have gotten MORE expensive