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The Impact of rising house prices

Jonny Clark

12th April 2016

The Halifax has calculated that the average rise in house prices in the UK was 10% for 2015. House price rises in the UK appear to be a double-edged sword - for those who own their own home a persistent rise in its price will give the impression that their wealth is increasing. For those attempting to get on to the housing ladder, however, these rising prices makes the opportunity of purchasing a house more difficult.

This article from the Guardian bemoans how rising house prices add to greater inequality and suggests that government intervention into the housing markets (using Price Max methods) is unlikely to occur for political reasons. The article also suggests that the lack of inclusion of house prices in the inflation calculation also gives a false impression of the value of money in the UK.

This quick video offers some further analysis:

Jonny Clark

Jon Clark has been teaching economics and business studies for over 25 years primarily in the Further Education sector. Before joining tutor2u, he was a senior manager at South Cheshire College in Crewe.

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