The next 18 months has the potential to be a catastrophe in this country. As mentioned about rents, I was talking in work yesterday and we looked at current mortgage rates.
I bought my current house 3.5 years a go for £170k. The mortgage is £700 p/m.
To buy a neighbouring house now its almost £300k. With a 10% deposit the mortgage now will be £1700 p/m!! Its unbelievable! We would never be able to buy a house now. I'm so glad we did.
There will be a housing crash within 18 months. Guaranteed. Rentals are becoming a huge problem as mortgage rates are ridiculously high. However its not necessarily the mortgage rates being high. We've had historically low rates for a long time now, however in the 80's my parents were paying almost 15% interest rates..
The problem now is that houses are massively over priced. House prices have gone up much more than pay has.
Average wage in 1980 was £6,500 a year. 2022 was £33,000. Risen by 5 times..
Average house price in 1980 was £20k. 2022 was £294k!!
Risen by almost 15 times!
Obviously London can skew these a little, but the gist of it is there. Its not sustainable and will come crashing down soon...
TLDR. I'm all for moving abroad like you! Portugal here I come!
