UK house prices I think are largely based on a ponzi scheme which is being passed off as one of supply and demand. The scheme effectively went bust with the financial crash in 2008 which, contrary to what the culpable would prefer people to believe, was seen coming by some analysts. Seems like only yesterday that some of the expenses fiddlers were scurrying down Westminster streets trying to evade reporters while uttering things like putting money into banks is no different to putting money on a horse. That went down well, what not, with pension providers who had regarded banks as extremely safe blue-chip investments and the likes of local councils who thought that their millions in reserves were safe in a bank - as safe as, well, err, houses.
There was a wobble in the housing market at the time but not a crash because to save their own faces, positions and nice little earners the culpable in the uk merely deferred it. But it is not sustainable to borrow and to print funny money forever plus savers cannot be squeezed for what they no longer have or no longer entrust to a bank - banks which some still regard as safe as houses but for utterly different reasons, lol. America did let the crash happen and in so doing ensured that those affected fell from a lower height. China's got a massive problem atm with its housing market. About, I think, 90 million empty properties and some huge new-builds demolished before completion when the business model collapsed. Many of its people bought off-plan and have lost their money as things stand atm. China's day of reckoning has arrived in its housing market and it will be interesting to see how they deal with it and its global effect.
