I have always said house prices are not a reflection of what people will pay for a house, but what the banks will lend. When the banks were only lending salary X 2.5 then prices increased steadily with wages. When banks increassed the lending ratio, house prices went higher.
Devils in the detail: Horrors that hide behind the financial reanimation...The economic data that could give you sleepless nights | Daily Mail Online
WAGES THAT CAN’T KEEP UP WITH HOUSE PRICES
In 1997 the average wage was £16,826 and the average house price was £59,199 – a little over three and a half times more.
The average wage has increased steadily – it’s now £27,287 – but house prices have shot up.
The real startling increase was in the 1990s, when because of reckless lending house prices grew to £181,364, seven and a half times the average wage.
In 1997 the average wage was £16,826 and the average house price was £59,199 – a little over three and a half times more.
The average wage has increased steadily – it’s now £27,287 – but house prices have shot up.
The real startling increase was in the 1990s, when because of reckless lending house prices grew to £181,364, seven and a half times the average wage.
Devils in the detail: Horrors that hide behind the financial reanimation...The economic data that could give you sleepless nights | Daily Mail Online
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