Why is it so expensive int he UK?
The cost of housing is baffling to many. How & why have costs gotten so crazy?
2006-08-31 18:22:42 · 8 answers · asked by Dean 1 in Business & Finance ➔ Renting & Real Estate
Limited land for development.
Low interest rates
Relaxed lending criteria - self-certification - buy to let mortgages -lending at up to 5 x salary
General confidence that house prices will continue to rise.
Lack of any economic recession reducing people's ability to pay their mortgages.
2006-08-31 20:56:37 · answer #1 · answered by Frank M 3 · 0⤊ 0⤋
Caues we now have more people needing houses than we have houses caused by lack of new developments, longer life-spans and masses of immigrants. Less houses but no drop in people reaching adulthood speaks for itself, people living longer postpones their properties coming onto the market again reduces supply, and all the new immigrants have to be put somewhere, can't just leave them on the street (though I do have a few other ideas!!). Its basic supply and demand, more properties than people would mean a price fall as people have the choice, but if you got 3 people all after the same property you can up the price til all but one have dropped out (more lea-way)
2006-09-01 13:13:32 · answer #2 · answered by Bealzebub 4 · 0⤊ 0⤋
Basically it is a matter of supply and demand. There is a shortage of housing across most of the country and this hikes up the prices.
2006-09-01 01:41:04 · answer #3 · answered by ? 5 · 0⤊ 0⤋
Isn't property cost linked to interest rates?
Personally I would only pay daft amount of money for a place worth daft amounts of money. Like a castle.
2006-09-01 01:27:16 · answer #4 · answered by earthangel_ghost 3 · 0⤊ 0⤋
Island = Limited land
Good Investment
Probably real estate remains the best investment that has the least risk and would have best rate of return.
Buyers market
Limited supply
2006-09-01 01:29:38 · answer #5 · answered by does good job 2 · 0⤊ 0⤋
Probably have to do something with inflation and the demand for land/property and less supply of housing......I know it crazy....!!
2006-09-01 01:29:24 · answer #6 · answered by de_dark_angel71 3 · 0⤊ 0⤋
Because they have been manipulated by banks..estate agents..government..and other money houses.
2006-09-01 02:06:03 · answer #7 · answered by baling 3 · 0⤊ 0⤋
not enough houses is being built for it's demand.
2006-09-03 10:17:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋