Read or listen now | Explore the impact of debt, rates and money supply on the housing market. What happens next? Gain insights into affordability and future prospects.
One interesting reference point for house prices compared to incomes is to consider values in The Good Life... Tom, a draughtsman designing plastic toys for cereal boxes was on about 8k a year then but his 4 bedroom house in Surbiton was around 26k, next door, Gerry, the higher flying executive, was on about 12k so therefore the big house was well under 3x income. Fast forward to present day, Gerry would be doing well to be on 80-100k as a high flyer in a cereal company, Tom’s job wouldn’t exist and that house in Surbiton would be atleast 1.5 to 2m. Well above a 3 or 5x or 10x good income. Basically something must have gone a bit out of kilter when you can be a top rate tax payer and not afford a 1 bedroom flat anywhere in your region.
The financial astrologers say the same 2025 / 2026 is when it all comes tumbling down. I'm waiting... just checking to see what you thought as I am tempted to buy but surely the arse is about to fall out of everything!
Corresponds with my views entirely. Something has to correct. Keep up the good work.
House prices are now falling, is this the long overdue end of the bubble?
Looks like it
Just listened to it. Anytime I hear anyone (normally a midwit) saying my house is worth £x000000, I ask them how they know that is the value.
The normal response is next door sold for £x000000 a few months ago and mine is much better.
After listening I put a £10 note on the table and say I will buy it for a tenner.
They are outraged and say I just said it is worth £x000000
I smile and reply have you had a better offer as the market value is the best price you have been offered
One interesting reference point for house prices compared to incomes is to consider values in The Good Life... Tom, a draughtsman designing plastic toys for cereal boxes was on about 8k a year then but his 4 bedroom house in Surbiton was around 26k, next door, Gerry, the higher flying executive, was on about 12k so therefore the big house was well under 3x income. Fast forward to present day, Gerry would be doing well to be on 80-100k as a high flyer in a cereal company, Tom’s job wouldn’t exist and that house in Surbiton would be atleast 1.5 to 2m. Well above a 3 or 5x or 10x good income. Basically something must have gone a bit out of kilter when you can be a top rate tax payer and not afford a 1 bedroom flat anywhere in your region.
That’s a very good illustration of how nuts things are
Excellent Domenic!
The financial astrologers say the same 2025 / 2026 is when it all comes tumbling down. I'm waiting... just checking to see what you thought as I am tempted to buy but surely the arse is about to fall out of everything!
2026 is the peak according to Fred Harrison and the 18-year property cycle
Thank you! 18.6 year nodal cycle in astro speak 🪐
Curious why MoneyWeek articles omits mention of the year in the last paragraph.
Curious why MoneyWeek article omits the year in the last paragraph?
Thanks Matthew. Really interesting.
Agreed!