PDA

View Full Version : Housing Bubble in the UK!



Topher Bear
04-18-06, 03:32 PM
I wondered what the Experts behind iTulip feel about the megalithic housing bubble in the UK?

Ours also started around 1996, albiet from a low after the crash of early 90's, but has progressed to astoundingly stupid proporttions, on a NATIONAL scale...forget regional, this thing goes to the heart of the worst unemployment areas of the country. It went into plateau over 2004/2005, but is beginning to pick up again....whats happening? Will I ever be able to afford my own home?

A little perspective. I currently live in a modest 3 bed house and pay 600 a month (thats about $1000 i believe). If i were to buy the same property i would have to pay 900 ($1500) a month in mortgage repayments!!! I am earning about 150% of the National average wage in an area a little below national average, and yet I find that traditional income borrowing multipliers provide me with little more than a small 2 bed flat!! (no good for a family!)

I think this housing bubble is across most of the western economies...how about a global perspective?

Thanks

Topher Bear

bart
04-19-06, 10:04 AM
I'm not much of a real estate guy, but here's two charts from The Economist over the last few months. Hope they help.


http://www.nowandfutures.com/download/economist_housing_britain_australia_us_1998-2005_CSF110.gif



http://www.nowandfutures.com/download/economist_housing_prices_to_rents_britain_australi a_US_CSF107.gif