I’ve been living in rented accommodation for the last two years despite being able to afford a house/flat, because it was incredibly obvious that house prices were going to peak, interest rates rise, and the economy slow down.
The fact that you did buy a house means that either you felt financially secure enough that even if all the above happened, you’d still be able to pay the bills (I know some people who’ve gone down this route; good luck to them), or that you thought buying a house was a supercool one-way ticket to infinite money at the expense of, erm, someone else.
If you’re in the first group, good luck to you. If you’re in the second group, then I’ve got to admit that I don’t find your financial travails spectacularly moving.
Relatedly, please can clueless muppeteers stop whining that “ooh, inflation is actually really high”? The CPI and RPI, both of which are still below 5%, are weighted by people’s actual spending on the actual goods included, so the fact that chips cost 15% more than they did is not evidence in favour of your proposition. Here is the actual breakdown of price changes by category (PDF). Read, digest, then put up or shut up.
Also, read this. It is true.
But, the fact is, house prices rise… even after recessions, markets tend to correct themselves.
Good luck to everyone, I don't want to see anyone get screwed.
But if you can weather the bad times, the honey will come.
Houses have risen in value, on average, at 10% per-annum since the mid-sixties. With a couple of major corrections. I would advise people to sit and wait, but then again, people have to live somewhere, so rental opportunities remain. As long as you can cover your outgoings, buy-to-let is a good deal if you're careful, and you buy properties undervalued in the market.
That said, I would like to see a inflation rate including insurances, fuel, and council taxes.
After all, these represent significant outgoings, even if the grocery basket remains stable(ish).
What about if you were pestered into it by your girlfriend, who wanted to buy some furniture?
….a nontrivial source of support for house prices right there.