Wednesday, December 06, 2006

HOUSE PRICES :-(

I find it depressingly interesting to look at the housing market these days. It is fine for people like me who are already on the property ladder but I am struck by the vast difference between the increase in salaries and the increase in house prices since I bought my first flat in 1993. Then André and I bought a one bedroom flat in the West End of Glasgow in Havelock street. Although we bought it together, I could have bought it alone as the selling price of £45000 was more or less exactly what the bank was willing to lend me in a mortgage at that time. I was looking at the GSPC just now and a flat exactly the same as mine in Havelock street is now on the market for 'offers over £110000'. Anyone who knows the West End knows that means it will go for approximately £143000. Working fulltime the maximum I would now be lent is around £87000. So in just 13 years single publishing editors have been completely priced out of a housing market that was easily within their reach just a few years ago. I wonder if my kids will be able to leave home ever if this pattern continues?

4 comments:

Thomas said...

You sound so altruistic... But would you have been as concerned if it hadn't been for the immediate need for you and me to buy something large enough for 6-7 people? ;-)
Anyway, I wouldn't be too concerned for your kids. House prices tend to be fairly stable in the longer term, which is another way of saying that it's likely there's be a housing crash before they grow up. :-/

Phyl said...

Am not sure what planet you are living on if you think anything short of a lotto win will ever provide such large accomodation. As for house prices crashing - my parent have been in the same house for 34 years an it hasn't crashed during that time :-\

Thomas said...

An alternative to a crash is constant prices, not rising with inflation. But of course, there are always areas and specific houses that actually do rise in price. Hmmmm, I probably should dig up some statistics and blog it.

Derek said...

Our original flat in Barrington sold for £189,000 recently - I think we paid about £72,000 for it in 1997!