makemakeolaf wrote:the collapse of the UK housing market is a complex issue that requires a multi-faceted approach. The only way to make housing more affordable is for either prices to fall or earnings to rise. Unfortunately, it is unlikely that prices will fall significantly, so the only way to make housing more affordable is for earnings to rise. This is already happening, but it is not enough to make housing more affordable for everyone.
Average house price 1990 £55K, mortgage rate 15%, yearly interest cost £8250
Average house prices 2022 £290K, mortgage rate 2.85%, yearly interest cost £8250
So in nominal terms recent mortgages were paying the same as in 1990.
Factor in inflation since 1990 = 2.264 multiple, and recent mortgage costs are less than half what they were in 1990 (8250 / 2.264 = £3644 comparable amount in real (after inflation) terms compared to 1990).
Sympathy for the 'hardship' of the youth of today from me is pretty low, as I was one of those who bought in 1990 and had to work every weekend and all of the overtime I could, and even had to rent out for periods ... to barely have enough to pay the mortgage, let alone have modern phones/techs/holidays etc.