Sunday, 6 May 2018

In their own words.

While googling around for something else, I chanced across an article in The Guardian:

Fionnuala Earley, residential research director at estate agents Hamptons International, said: “House prices have completely outstripped income growth.

“The biggest factor is that in the run-up to the crash, interest rates were low, so you could afford to service a bigger mortgage then.

"There was also low inflation on essentials like food, fuel, transport and utilities, so people had more money in their pockets and were able to gear up for bigger mortgages.”


Yet again, the Homeys cheerfully admit that most of the gains of economic growth go into higher land prices.

2 comments:

Ben Jamin' said...

How much are interest rates driving this debate?

Surely we should be focusing on the affordabilty of renting instead?

Mark Wadsworth said...

BJ, yes of course. We know that mortgage repayments and rents are roughly the same, the problem is getting a £50,000 deposit together.