When will London house prices fall?
House prices in the UK ebb and flow constantly
A friend of mine struggled to buy his home in the late 1980s. He told me that his father had faced a similar struggle in the early 1970s.
My friend bought his first house at a price of around £80,000. At first, the value rose to almost £100,000 in a little more than two years. Then it fell by around 30% to around £63,000. He’s moved a couple of times since, but his first house recently came onto the market again. It is now priced at more than £290,000 – almost four times what he paid for it, in less than 30 years.
My friend’s father paid £9,000 for his first home. That property is now valued at more than £360,000.
One of the common factors in both cases is that property prices were said to be too high at the time. Youngsters “will never be able to afford to buy their home.”
In this post I’ll look at the reasons why property prices are so high, and why they’ll probably continue to go up over the long term. You’ll also discover the real reason why house prices in the UK took a tumble in the late 1980s, and again in 2008/9. Read More