Someone earing £40K has the buying power of someone earning roughly £32K 12 months ago. Less when you factor in energy costs. If wages (even professional wages) continue to plummet in real terms housing prices have nowhere to go but down. The supply will begin to outpace the demand and a lot of people will be pushed off the ladder altogether.
People will sacrifice living standards for the mortgage to a point. 2008 taught us nothing if not that. We are going to find out again. |