I have been watching this matter closely over the last few months as my retirement fund will be whatever I have in my property portfolio. We are told that house prices are continuing to rise, which is great for those that already have a 3 year + mortgage; and shite for those trying to buy.
Just to add to the uncertainty, Abbey are encouraging people to borrow way too much money and mortgage themselves up to their tits. They of course will say that they are making buying more affordable as many on monthly basis can meet mortgage commitments. At the same time, PWC say there is a 1 in 3 chance that house prices will fall within the next 3 years.
Personally, too many mixed signals for me, I am going to reply on my surprisingly accurate spidy-sense; and right now they are tingling that those on the 5x salary mortgages should have chosen not to “super size!”.