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What Are Houseprices?

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House prices are 4 times average salary.

this is because the economy can't support any higher..

any sway from this is common, but in each case it has swung down to below 4 times as the economy is throttled by debt repayments.

This either happens through price drops or inflation or a mixture.

Higher prices could be maintained if the economy was able to change as rapidly as house prices.

It can't.

The economy never say's

"Ahha, that's where the money is now, I shall quickly re-align to make use of it.."

It says

"Well the money used to come into here.. now its over there.. But I can't change.. I need it where it used to be.. now there isn't enough there.. I am struggling.. oh look.. recessive tendencies... damn... oh.. inflation.. interest rates need to go up.... essentially I am a big rock.. I can't change and I will return to my natural balance.. ..there you go.. its fine... :)"

If this made sense to you.. well it makes sense to me..

High house prices are an aberration.. they always have been... always will.

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  • 302 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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