Inflation is a factor in a few years but never today. Now inithe 1970s high inflation meant that a house you can barely afford becomes a small part of the budget in a couple years while the small inflation of today means a house you can barely afford today is still a big part of the budget in 5 years - but that is not a consideration of today.
It absolutely is a massive factor; because people plan a few years ahead.
Consider how much it changes what you can afford if you save one year worth of payments in each case.
There is also less need to get the maximum possible loan if house prices are lower as a ratio to income.
Inflation is a factor in a few years but never today. Now inithe 1970s high inflation meant that a house you can barely afford becomes a small part of the budget in a couple years while the small inflation of today means a house you can barely afford today is still a big part of the budget in 5 years - but that is not a consideration of today.
It absolutely is a massive factor; because people plan a few years ahead. Consider how much it changes what you can afford if you save one year worth of payments in each case.
There is also less need to get the maximum possible loan if house prices are lower as a ratio to income.