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zigglepiggle

How can prices not collapse?

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Seems like simple maths given:

- new MMR rules limit lending above 4.5x income: https://www.mortgagestrategy.co.uk/issues/1-april-2015/cover-story-mmr-one-year-many-changes/

- average house price is 7.6x income: https://www.theguardian.com/money/2017/mar/17/average-house-price-times-annual-salary-official-figures-ons

The only options to get around this ratio in the long run:

- Wages increase > 50% (lol)

- BTL (now dead due to S24)

- Foreign investors?

Even without IR rises, recession, whatever... it seems like the only way for prices is down until they hit ~ 4.5x income or lower, or am I missing something?

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