Quote:
Originally Posted by Flamin_Squirrel
That's symptom, not a cause. The only reason buy to let became popular is because house prices were rocketing, not the other way round. Sure it didn't help, but it's because people could afford to pay the ridiculous prices, and then some, that prices continued to rise.
Or rather, people couldn't afford to pay the ridiculous prices, but were borrowing far beyond their means. Now the banks have got the jitters and realised lending £300k to a those on £20k pa isn't such a good idea, hence the difficulty in getting a mortgauge and price drop that brings.
|
We know the cause - its as has been stated, both by myself - the Commoditising of property and its use as an Investment, and as you say, the fact that people were willing to do anything to get on the ladder, as you said.
In order to sort the situation out, however, there need to be more houses on the market, which making it un-economic to own loads of houses is one way of doing this.