The economy

[Joey Stewart]

So... What do people think? Are we finally going to get that property crash the government have desperately tried to avoid the last 25 years?

[Chris Goodall]

No. Unless the population suddenly drops or we suddenly build a million more houses. The financial industry is predicting double Ragnarok right now to try and wring any concessions they can out of Liz and Kwasi, but when has bricks and mortar not been the most popular hedge against 10% inflation?

[Roger de Coverly]

but when has bricks and mortar not been the most popular hedge against 10% inflation?

Prices reached a maximum in around 1989, then crashed and didn't really recover for getting on for 10 years. What happened was that a recession and high interest rates in the early 1990s forced a number of borrowers to hand in the keys as they couldn't afford the mortgage. The lenders did a fire sale of the resulting properties on their hands which crashed prices by up to a third. A first time buyer's property that might have needed £ 60,000 in 1989 could drop towards £ 40,000 .

Back in the mid 1970s, house prices just stuck at their previous levels as wages and salaries caught up.

Prices had recovered to their previous levels by the late 1990s and headed up into the stratosphere thereafter.

[Joey Stewart]

Back in the mid 1970s, house prices just stuck at their previous levels as wages and salaries caught up.

That alone makes me think that the crash is more likely then ever, given the modern trend of jobs paying the absolute minimum for the maximum amount of work I can't see employers suddenly reversing that way of thinking.