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tomandlu

Economist Interactive Graph

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Thanks for that, really interesting. I see that we stand out of course, but interesting seeing Spain is still overvalued despite the plunge, and LOL at Germany!

I came across it due to a thread in the Guardian where someone was saying that Germany had had a bubble despite tighter lending than in the UK - yeah, not so much...

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I came across it due to a thread in the Guardian where someone was saying that Germany had had a bubble despite tighter lending than in the UK - yeah, not so much...

Germany was in a long recession prior to 2007. Try setting the as the starting date. Germany has been out bubbling the UK for the past 7 or 8 years.

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Germany was in a long recession prior to 2007. Try setting the as the starting date. Germany has been out bubbling the UK for the past 7 or 8 years.

German prices were also very much higher than ours back in the 1980s. Rents, on the other hand were altogether much more reasonable, especially when you take the difference in quality into account. And interest rates were much lower, which may have explained why you could have higher prices and lower rents.

What's happened in Blighty is in part a readjustment towards German standards: higher prices, relatively lower rents and interest rates, and improving rental quality (albeit with a way still to go). If only it hadn't been such a bumpy ride, and if only we could rid ourselves of the relics of "second class citizen" attitudes to renters, it might all have been quite a reasonable adjustment.

The graph would've been a lot more complete if it had included interest rates/mortgage rates. Also the effect of tax-and-benefits, though I guess that would be seriously hard to measure. And it leaves averages masking huge difference between "insider" classes (such as those who got council houses or occupation-tied accommodation) and outsiders in an altogether different market.

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