High house prices make it difficult for people to come to Aberdeen when a city like Glasgow has cheaper house prices but a teacher will get paid the same in either city.
This video talks about The UK's idiotic house prices .
This presentation tackles land prices: Land Value
This article, rising house prices, has this to say on the negative effects of high house prices:
- Wealth/ income inequality. Rising house prices are good for those who own a house (often the older generation) It is bad news for those trying to get on the property ladder.
- Rising house prices increase inter-generational wealth inequality. Homeowners see a rise in wealth. Those unable to buy experience higher costs of renting.
- Social change. One problem with high house prices is that it is contributing to social changes. Many people are struggling to buy houses in areas where they were brought up; therefore, they need to move to more affordable areas.
- In the UK, the rise in house prices doesn’t reflect strong, sustainable demand, it reflects a shortage of supply in the market, therefore it is misleading as a sign of the underlying strength of the housing market and economy.
- Rising house prices mean first time buyers have to take increasing risks to buy a house. The size of the housing debt means that homeowners are vulnerable to future rising interest rates.
- Evidence shows that the housing market is particularly vulnerable to booms and bust in house prices.
- Geographical immobility. Expensive house prices makes it more difficult for people to move around the country.
This article Unaffordable house prices points out that high house prices:
- force families to become increasingly reliant upon two salaries to service newly acquired mortgage debts thus increasing the financial risks should one parent become ill or unemployed.
- makes it difficult to attract key workers to areas where prices have risen highest.
- The rises inevitably lead to an over-concentration of investment into housing rather than in more productive areas such as investment in companies or the local economy.