Image: © mohamed hassan via Pxhere

Thinking of buying a house? It’s going to cost you (even more)

It’s partly because wages are going up, and mostly because nobody’s building enough homes.

House prices are still going up, up, up. It’s partly because wages are rising, and mostly because nobody’s building enough homes.

What it means: Homes are now 3.7% more expensive than they were a year ago, according to the bank Halifax. To put that another way, if you had your eye on a £300,000 house last year be prepared to cough up an extra eleven grand for it now.

The newspaper Reuters says the higher prices are caused by ‘a gradual pick up in wages’ (so people have more money to buy property with) and ‘limited supply’ (more people want to buy houses than there are houses available, so they bid up the price like an eBay auction).

But things may be a-changing. Last month the Bank of England raised interest rates from 0.5 to 0.75 per cent. Interest rates are the price you pay to borrow money, including mortgages. So mortgages are about to get more expensive. That might discouraged people from buying houses, either because they'd have to go into too much debt or because trying to pick the right time to buy property has become so frustrating they'd rather jack it all in and go live in the woods somewhere (or is that just us?). Either way, less people fighting over properties means prices will fall.

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Reader Comments

  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?