Is there a problem with the UK economy?

Question

Assuming you are still working and earning the same of slightly better money how can it be that if your house was put back on the property market (assuming it has made money) you would not be able to afford to buy it? I.e i paid £97000 for my flat 5 years ago, its now worth £210,000 because of the increase in property prices. I would not be able to afford to buy it at the new sale price as no lender would lend me enough money based on my wage! Surely this is an indication of an economy going bad? Surely wages should rise in line with the property market?

Ok i will ask the question another way. If wages are used to buy utilities, goods and services and these items are subject to inflation set by the bank of England why are house prices not subject to the same factors, instead they increase based on demand? Wages buy houses so a rent wages being devalued by inflated house prices and therefore the pound is being devalued.

Answer 1

Do you mean as a first time buyer? You yourself should be able to afford it due to the equity you would have accrued.
Linking wages to property prices couldn't work, since more and more people will require housing and supply is not meeting demand, so prices will continue to rise disproportinately

Answer 2

No, it's an indication that property prices have ballooned over the past decade, partly due to high demand, which rather ironically is due to a strong economy.

Answer 3

thats the rule of the game everywhere in the world my dear. such properties like buildings they dont depreciate in value but gain. that is why you need to have a good reason when selling your housing in the first instance and make proper calculations that you will not need that same house in future. when you buy a car, its called spending and when you buy a house its called investment. lol