Housing Market: Difference between revisions

The UK relies heavily on the increase in property prices to create the impression of a growing economy. It is fair to say that some inflation in property prices is not necessarily a bad thing. As a property increases in value, the debt taken out to purchase the property is reduced as a percentage of the market value, which helps the ownowner of an asset that offsets some of the interest payments made on the mortgage. The intrinsic problem with house inflation is that the value bears no relation whatsoever to its actual physical bricks and mortar cost. There is something fundamentally wrong with a society that marketises that which is integral to quality of life and even to survival. It is so ingrained in our society we have stopped seeing the built in madness.

However onceOnce the increase in house prices outstrips most buyers ability to buy and where the demand outstrips demandsupply, the market will tend towards a rental market where those with large amounts of capital can exploit those with little or no capital. A [[Housing - Rental Market|rental market]] is not a bad thing in itself, but it must be guaranteed by a good supply of properties and legislation that ensures reasonable protection of the tenant.