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In order to give VP's commentary and numbers some context, we need to see how much the average person takes home in wages and salary (after tax) in Holland. Then we need to see what percentage of take home pay is on average spent on housing (mortgage or rents) in that country. Only then can you even begin to compare Holland with the UK.

Simply taking a forex value for an overseas product and translating into sterling doesn't even come close to being a valid comparison. (Unless you are going to work in the UK and live in Holland !!).

Consumer markets are such that people can only choose from what is available. The housing stock in the UK is what it is. We are buying and selling from eachother. The price is determined by how much people have to spend here, with the money they earn here. The fact that the same anount of straight currency would get you more in other countries is irrelevant. Especially if your salary in another country (on a straight currency translation basis) would be, say, half what you are earning here.

For example, as an accountant I know that there are very few places in the world where i could earn what I earn Uk, for the job that I do. I went to Rotterdam on business once and the accountant i spoke to there told me that in order to qualify as an accountant takes longer than in the UK, and the salaries they earn compared to the Dutch national average are nothing special if you do a straight translation into Sterling. So if I went to live in Holland, then yes, I would be able to rent a nicer house for less actual currency, but there's no guarantee i would be able to afford the same house I live in now on a typical Dutch accountants salary.

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From a dutchmans point of view living in UK.

Housing has gone up a lot of the last 7 years in Holland but still a lot cheaper than UK. The main reason why houseprices are a lot cheaper is that in Holland they understand the need to use some greenfiled sites for new development. Comapre the UK to Germany. In Germany 14% of the country is built up. It means people have nice houses good highways etc. In the UK it is only 7%. This nimby thinking and "we have to preserve the country side" has resulted in crammed housing for exteemly high prices. Do you think the first settlers in the UK said we are not going to build in the river thames because it might ruin the view.

This has to stop. Germany with 14% built up area has still got enough beautifull country side to enjoy. Stop short term politics and nimby thinking and create a masterplan for Britain.

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That's a good point about wages FDK.

Before everyone jerks their knee in typical HPC style, has anyone looked at affordability ?

Just because a flat is £500 a month to rent, it doesn't mean that they are better off unless they are paid UK wages which is the old arbitrage effect.

What is the typical wage over there, what are the credit contraints like, how high is unemployment, etc. ?

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  • 442 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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