scruffian

That makes sense. Can see this situation draggin on for a long time...

Ok so demand is exceeding supply. Doesn't that just help to keep property in the hands of the rich and unattainable for everyone else?

But does the market need FTBers? If the number of houses is not increasing and the number of people are not increasing then there is no need for FTBers at all. When people die their house goes to their family. Those who own continue to do so, those who don't can't. I don't think we are there yet, but isn't this a possible scenario at some point?

This got me thinking... In the UK, with a more or less stable population, an ageing population, and likewise a relatively stable number of properties, won't we see an increasing number of people who own their property outright? In this scenario isn't the value of a house only important relative to it's desirability to other house owners, not their ability to pay that value based on their income? Doesn't this mean that the value of property becomes detached from earnings? Maybe I am missing something...

yet another example of tax breaks for the wealthy...

That's true, but tax isn't designed to be fair is it? I mean if we all paid tax equivalent to the services we use then there would be no need for tax.

http://www.telegraph.co.uk/finance/budget/8386591/Budget-2011-George-Osborne-hints-at-more-reforms-as-OECD-cuts-UK-growth-but-applauds-austerity-measures.html There was more on this in The Times. Essentially he seems to be arguing that the planning system needs to be relaxed in order to support the failing housing market. Seems like a backwards argument, but if it makes it easier for me to build my own house then I don't care. The article in The Times also mentioned removing the planning process from the process of converting business premises into residential, as well as other thing. Be interesting to see what it amounts to, but as far as I can tell, more houses means lower prices!

Sudden slump in mortgage lending, lenders reveal: http://www.bbc.co.uk/news/business-12710836 [sorry, i've been lurking...]

http://goldismoney.info/forums/showthread.php?t=306516