patrick.net

http://www.theguardian.com/books/2013/aug/18/default-line-extract-faisal-islam-housing

"Now consider the price. In a market such as this, the buyer with the largest wallet wins the house and sets the price. At one time that would have been the buyer with the highest single salary, and who had saved the largest deposit. House prices would therefore rise roughly in line or slightly ahead of the rise in incomes. But imagine if the entire queue of prospective house purchasers is flooded with mortgage credit. At this point, the house price is set by the greatest optimist. Ladder Street's housing market has become a market, not for homes, but for mortgage credit. It is the availability and terms of credit that have come to determine property prices. Every sluice gate was unlocked, then left ajar, and eventually flung open to accommodate the tidal surge of credit."

Good article - though about England. Explains how Buy-To-Let is used to maintain high prices, at the price of turning young people into financial slaves.

#housing