Many would say that house prices have had their inflation bubble and more, and that the rest of the economy, and salaries, are on a much-delayed catch-up. If pay doesn’t stack up to cover mortgage payments, there’s no way prices can go up and up for ever. There has to be a bottom end, habitable houses which first-time buyers can actually afford, to support the top-end. And by ‘top-end’, I’m not talking zillionaire’s row, they’ll always, unless we tax them more, be able to keep buying. No, it’s the 5 bed detached, whose buyer moves from the 2 or 3 bed semi which they bought having sold their first flat. Real life, in other words, which never really goes away and outlives all the agents’ hype. In the end.
“Buy-to-let mortgage payments increase by 286% in one year”
It’s changes in the rental market which will have the biggest effect on property prices in the next year or two. An obvious one is the rise in interest rates.
