Talk:Residential property market in the United Kingdom

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[edit] Housing

I am not a smart property buyer, so please tell me how this relates to the US market, and what "price to income" ratio we have historically and what it is now. thanks Steve

Hi Steve. I don't know but these people may. JASpencer 17:18, 11 August 2005 (UTC)

The US market is a misnomer, the US operates, at best 'regional markets' (and otherwise state markets). The US housing market is definitely looking like a bubble (defined as when people begin to purchase housing, regardless of cost and mortgage payments, purely for capital gains), but this depends heavily where the housing is available. The price-to-income rate has to be calculated on a local basis, but you also have to consider the location. New York City, like London (where I live) is much more compact than Alabama, as a whole, and will have many more wealthy people living in the centre of the city, as compared to a state as a whole. This means that, even within New York City, people living in Manhattan will have higher incomes and may throw off a price-to-income graph for the whole city. The US markets, in general, I feel are heading for trouble (due to several factors, not just housing), but it really depends where you live. If the area is cheap and hasn't appreciated for what appears little reason, you'll be fine (or better off). The trouble is that the US does not suffer from housing shortages (unlike Britain, which has household formation that exceeds new construction, meaning that property is often converted into flats, etc.). So the there is little reason for a housing boom, other than low interest rates and a perception of 'get rich quick'. Cheers, Nick Kerr 20:42, 14 August 2005 (UTC)

[edit] Updates

This article should be updated to include information about the structure of the housing market, issues with things like planning permission and infrastructure, and also issues like the North-South divide, which produces scope for the increases we've seen in the past few years (where Scotland and the North of England have much faster rises in property values than London and the SouthEast). Also, mortgage reliefs were removed around 1992, but rental income is still taxed separately from Income Tax, making it more advantageous for those earning at the Upper Rate of income tax to own property for investment purposes, as compared to shares, bonds, or simple bank deposits. Nick Kerr 09:24, 11 August 2005 (UTC)

[edit] Older history

Could someone add information about prices earlier in the 20th century? mavhc 11:16, 28 August 2006 (UTC)