Originally Posted by
ragingpup
I think that the price of housing was also significantly affected by the willingness of banks to lend up to 5 x the amount of buyer's wages as well as allowing them to continue to repay into their 70s. Bank's were very happy to hand out even risky mortgages as they know that if it defaults, they can simply take hold of the property. Relatively easy money and without any regulation, there was no reason for owners, obviously encouraged by the financial services industry (agents, advisers, banks) to not take advantage of this easy money creation scheme. Supply and demand is an important factor, but with some regulation, might not have been the wealth grab that emerged, that hugely disadvantages millions of youngsters today.