We're about to get a huge slump aren't we?

[Potatoduster]

My sale has just fallen through as my renegotiated price on the place I'm buying has been agreed!

There has been a rush to exchange before September and brexit. But now any new buyer isn't going to exchange before then

Anyone else think the slump will start soon? I was getting ready to move in a month. Now I'm thinking it could be at least another 6 months

Relating house prices to wages is a poor measure. Though historically we have always been told be can only afford something upto a notional multiple of our income. It’s the monthly cost that’s more important.

www.economicshelp.org/wp-content/uploads/2012/07/NW-affordability-FTB-mortgage-take-pay.png

But we have found more things to spend our money in recent times ( car PCP payments for example). I see on EE the monthly cost for the lastest IPhone is 20% the average U.K. mortgage payment.

Sure deposit requirements are higher now, but that has been set and varied by policy (Bank and regulatory). According to news reports most of that deposit is coming from the Bank of Mum and dad.

People always hold fire in time of uncertainty. I suspect pent up demand will mean people go back to buying and selling houses once Brexit is done and dusted, regardless of what sort of deal or otherwise come out of it.

@midura agreed - it’s just the price we settled on once we had looked at the purchase as a whole and I saw someone uptnread state it was cheeky and realised that was what we had ending up paying!

Re wages the important point is so many people couldn't afford their house now on their wage. That's why they are so out of sync with wages.

This won't continue forever, it's all very bubbly.

Relating house prices to wages is a poor measure
Except that house prices drive rents
due to the lack of social housing
and so render huge swathes of the country unaffordable to 60% of the populace

UK house prices are a bubble driven by professional fees, not by actual value

Demand certainly drives rents. Demand surely is related to the number of properties and size of population. Yields are much much lower these days so rent doesn’t follow house prices in the same extent.
Maybe be the issue is lack of council house building for one reason or another.

The lack of council houses has removed the anchor at the bottom of the market.
Those who can never properly afford a private rental are being forced into them and so landlords were able to rake it in.
The tax changes and Universal credit have resulted in no improvements in supply, just thousands of homeless.

The only way that rents can be driven back down is to increase the supply of council housing
that will then reduce house prices at the lower end

proper taxation of under occupied homes would drive it back down at the upper end

but it will not happen under the current crop of politicians