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Can These Prices Exist.

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Okay... heres an idea..

Lets just say that House Prices do not crash.. Lets say they stagnate..

What is the impact on the Economy.

Right now only a small proportion owe up to the current "Percieved" value of their homes.

Lets just say that everyone buys at todays prices.

so you look at an average price inflation of £70,000 in Devon.. (I have taken the inflation from a 1 bed flat.. lets be over generous to the market..)

at 5% interest that is extra payments of £3500 a year interest only.

So that is one person able to spend £3500 less then they would have otherwise..

Interest only..

So no repayment of the loan and the cheapest property and the impact to the economy would be that much..

If this was across the board.. could the Economy cope..?

I don't see how people can pay their mortgages.

I can't see the economy being that happy with the level of drain this debt creates.

Edited by apom

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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