Making money on your house

It used to be the standard topic of conversation in pubs during the late nineties and start of the century. Those who owned homes would excitedly talk about how much their houses had gone up in value, stating all the money they had 'made on their house.'

That was before the financial crisis and house prices falling (in some areas, at least).

Maybe people are more circumspect about house prices now but there is still a belief that a rising market is a good thing, that we need prices to creep up further. True, this will lead to a stimulus for the construction industry, estate agents and DIY stores but there are many negatives.

Firstly, those starting on the housing market will struggle to borrow sufficient to buy their first house, leading to the present situation where most households have two earners. And secondly, an often ignored factor, landlords will charge high rents to cover their own mortgages. This is compounded by the number of people who have bought houses as investments, renting out to earn income.

Which raises the key question - what is owning a house all about? Is is a place to live and raise a family, or is it about making a profit?

This should be the focus for discussion of the housing market, rather than an obsession with prices rising forever, despite the consequences.