I don't think Gordon's new towns will do much to help in large city areas and it won't help families are getting squeezed out of these places. It's so hard for people to trade up to somewhere bigger when the differentials are so large. If the difference between 1 bed and 2 beds was £50K three years ago, it is likely to be £80K now, and that means another £30K for someone to find before they are where they were 3 years ago. It's almost impossible if you are not on a high income. I wish some help was given to these people whose families are growing, and have nowhere to turn. They must be forming a huge log jam in the system.

Jenny, london,

Someone referred here to the dot.com bubble. As with all bubbles, "dumb money" follows the "smart money" but is invested too late when the opportunity is way past it's best.

With buy to let, we may have been in the "dumb money" phase for about 2 years now. So many late entrants took equity from their own homes, borrowed working on a model based on rental income covering only the interest on the assumption that double digit capital growth was available and sustainable long term. If buy to let investors merely stop buying, then the demand side would weaken significantly. Indications are there that they may be starting to sell, particularly flats and smaller houses where the yields are lowest.

This may bring about a sharp dip in prices this autumn. The end of the Universirty year this summer will also be a test of buy to let landlords resolve in my opinion.

A Patrick, Bath,

Someone referred here to the dot.com bubble. As with all bubbles, "dumb money" follows the "smart money" but is invested too late when the opportunity is way past it's best.

With buy to let, we may have been in the "dumb money" phase for about 2 years now. So many late entrants took equity from their own homes, borrowed working on a model based on rental income covering only the interest on the assumption that double digit capital growth was available and sustainable long term. If buy to let investors merely stop buying, then the demand side would weaken significantly. Indications are there that they may be starting to sell, particularly flats and smaller houses where the yields are lowest.

This may bring about a sharp dip in prices this autumn. The end of the Universirty year in August will also be a test of buy to let landlords resolve in my opinion.

A Patrick, Bath,