lang rabbie said:
A lapsed economist writes...
That is revisionist history, which I don't think would be recognised by any of the Brixton Hill residents (many of them on modest "blue collar" or public or third sector incomes) who were stuck with "negative equity" when the value of their one or two bedroom flats in local mansion blocks plummetted between 1989 and 1992 to way below the value of their mortgages.
When the next property crash comes, as it inevitably will, I will have rather less sympathy with people on City/media salaries buying at the current crazily inflated prices for the same flats
I do take that point, and yes, maybe I didn't notice the impact on those at the sharp end of the 1989-1991 blip, because
all prices were seriously unaffordable to me, 1987 inflated or 1992 'dropped'
But you take my wider point I'm sure, that 'falls' of that kind have in the last thirty years been exceptional. 'Slowing down in rate of increase' has been somewhat more common, and thats what I'd predict to happen next time, rather than any discernable drop of any significance.
I dispute that a 'crash' is inevitible. Except what the Daily Mail/Telegraph/Standard labels a 'crash', which is different
A slow down in increase, or utterly miniscule** falls in prices of SOME properties in SOME areas, will no doubt be trumpeted in the media as a catastrophic and horrendous crash and coillapse, though ...
**ie unrecogniseable as anything remotely affordable to any normally paid person. How many people do YOU know who cannot afford a £290,000 flat but could afford one at £270,000? I would think that for most Urbanites, the 'differences' between those two prices, in practical terms, is negligible.
Anyone who can currently afford, at current prices, to
first time buy a flat/house ANYWHERE within Zone 3 is, as far as I'm concerned, either very fortunate with a windfall, or (to my perception) rich.
I know a large number of buyers have something to sell already, but I've had that 'unaffordable' perception of
first time buying since the 1980s, a period within which very many of the curent first or second time buyers first got on the 'ladder'.
Housing inside Zone 3 (and probably outside it, too) is simply unaffordable in buying terms to any normally-paid person, yet more recently at least, my wages have not been shit.
It's not ME who's 'out of touch' in thinking like that ....