Does the UK have a large supply of houses? Does London have a lot of spare land where they can build new houses? Is the population of the UK increasing or decreasing? These are the only question you need to ask to predict what will happen to real estate values.
Well yes and no. I would argue, treating housing as an investment vehicle for both corporate and foreign interests has had the biggest influence on low end housing prices around the world. Corporate buy-ups, government backed loans and "affordability" scemes have all actually pushed pricing higher.
To be clear A large percentage of corporate and foreign ownership isn't actually needed to have a large influence on pricing simply because of where they are most likely to invest. Just a couple of percent adds significant upwards pressure on the low end of the market where affordability is felt the most keenly. After all buy low sell high.
Interest rates have a massive impact on how much people have available to spend.
And supply of capital in search of investment vessel.
Wage workers are just taken along for the ride.
Most properties in UK are bought and traded for investment purposes. Home ownership of UK is one of the lowest in EU.
Not really.
Its about on par with France and significantly above Germany.
House prices are very sticky on the way down. People simply don't sell rather than take a loss, unless they are forced to.
Here is the tldr: in country where most people buy houses on mortgages, and mortgages are given based on a person’s income then wages will pay a direct and very important role on house affordibity.
Also house supply is important but far from the only factor effecting house prices. If gov builds 1000 new houses and they instantly get bought by, say, the Saudi sovereign wealth fund it will have virtually no impact on house prices.
I beg your pardon?
That's 1000 lots of land out of circulation.
In no uncertain terms, this will have an affect on local market prices, by making the remaining land more valuable.
If they are empty then prices will remain the same or increase. If they are being rented out then prices to buy should decrease since there will be less demand (since more peopel will be renting and rents will probably decrease).