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I'm sceptical about the 'real house price change' argument for adjusting for inflation. The biggest single determinant of someone's ability to buy a house is their income, and for many people that is not rising at all, let alone at the rate of inflation.

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Interesting that you can infer from the table in that article that PWC think genreal inflation in the period 2007-2020 is going to be vs 2007-2015

Quite a lot of people (esp round here) would predict cash terms -20% real terms -1,000,000%

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Imagine the horror of that long, cold, icy night to come, where young, hard-working people who save, can afford a house. :lol:

Sounds like a hellish nightmare to me, one where people can afford a house and have spare cash to enjoy life with, brutal :lol:

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Interesting that you can infer from the table in that article that PWC think genreal inflation in the period 2007-2020 is going to be vs 2007-2015

Quite a lot of people (esp round here) would predict cash terms -20% real terms -1,000,000%

Their guessology must involve factoring in future substantially increased take home pay . :lol:

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I'm sceptical about the 'real house price change' argument for adjusting for inflation. The biggest single determinant of someone's ability to buy a house is their income, and for many people that is not rising at all, let alone at the rate of inflation.

The ONLY determinant is someone's income...

And as you say, it matters not one single jot about house prices adjusting in 'real terms' WRT price inflation, if wages for the vast majority are going nowhere.

In fact - I would imagine that real estate is becoming less affordable at the moment given the amount of money people are having to stump up just to cover their basic living costs.

That's why this 'house prices will remain static but fall in real terms due to inflation' stuff is just nonsense - wishful thinking.

We need real price falls - not just (price) inflation-adjusted ones!

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The housing market is entering 'a mini ice age', with anybody who bought between 2006 and 2008 among the biggest losers

Tsk, dearie dearie me.

Imagine the horror of that long, cold, icy night to come, where young, hard-working people who save, can afford a house. :lol:

The horror, the horror!

Sadly reader comments are not available at the moment. I can't wait for Sibley's inspired take on all this.

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  • 276 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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