To any impartial observer there is something ominously wrong with house prices across Great Britain!
They are not behaving as all other commodities are, since they are continuing to increase when average wealth is in decline, especially following the Covid 19 pandemic.
Sweeping reforms are now sought from those in government.
Just as Britain has led the world in many things in the past so it should do so again right now, by re-balancing housing market economics.
House prices should follow (or trend) modal average earnings rather than be dependent upon unregulated mortgage loan availability.
This is even more vital when loan interest rates are at an all time low, as is the case right now.
What are modal average earnings? The mode is the value which occurs most often in a set of data. For example, if three people were all paid £1,000, and this is the most common value, we would say £1,000 is the mode.
IF we fail to make this adjustment, prices will simply remain unaffordable to average earners in the long term and this isn’t a just way for such things to be.
I suggest IF this adjustment is not made our housing economy will end up wrecking our nation’s economy.
I ask, who would want that to happen?
Having worked in the housing and property sector for over 30 years, I hope I can be regarded as sufficiently qualified to set out carefully considered proposals for dealing with this crisis.
Please go to the following link to read these new proposals:
The House Price Virtuoso Solution (otherwise known as The Hendry Solution)
How to Improve the Housing Markets in England and Wales.
Posted by: Peter Hendry, Housing Valuation Consultant
Author:– The House Price Virtuoso Solution