How big is demand- housing?

I'm sure before the buy-to-let craze demand for houses was only as big as the number of households who required houses, and even then many of them could not pay for houses, so they rented, which depressed prices as the higher the purchase price the longer it would take for a landlord to realise a profit. However thanks to speculation it seems like, in theory, demand would be unlimited. Much like the greater fool theory regarding the stock market, if house prices rise consistently people assume they will continue rising and thus are prepared to buy them at more or less any price. So could we get to a situation where everyone, well except for really poor people, has a £10 million property portfolio, which is extremely highly leveraged (i.e. £99 borrowed for every £1 in a down payment)? Obviously at some point the bubble would burst, as it did in 2007, but I somehow don't think it had reached its potential apex.

1 month ago - 1 answers