[tweetiepooh]

One reason for high house prices is too many people buying property for investments, holiday homes, rental which in turn pushes up property prices making the investment more attractive and up it cycles. Big investors (often foreign) will likely monitor the situation and if it looks like a price collapse sell earlier or wait and buy up even more.


I've always thought that charging VAT on houses not used for main property would be a good move and charging far higher rates (but for rentals that would just push rent up). The same can be seen in other countries, especially in "desirable" areas or areas that can be made desirable. But that just pushes others out.



I bought my first house in 1998 having saved for 10% deposit (some of that from NHS work), house price around 3 times salary and getting in just before prices went silly. On moving up my wife had savings so we didn't need to extend the mortgage. We were fortunate.