Wednesday, January 20, 2010

Stat attack

The UK Housing Market over the past 50 years (pdf)

The average UK house price has increased by 273% since 1959 in real terms, an annual rate of 2.7% above inflation. House prices recorded their biggest increase in the latest decade with a real rise of 62% during the 2000s (5% p.a.); the worst performing decade was the 90s with a real drop of 22% (-2.4% p.a.). In 1971, 70% of households were composed of a married couple; by 2009 this had fallen to 42%. Government housebuilding has dropped from 128k to 39k.

Posted by little professor @ 12:34 PM (3545 views)
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5 thoughts on “Stat attack

  • Policymakers in government must be quietly patting themselves on the back for successfully appropriating future wealth from future generations on an unprecedented scale, all under the guise of economic policies ostensibly serving a public interest (actually an interest group) but first and foremost serving their own private wealth accumulation wet dreams.

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  • Am I reading this right?…

    “The number of households has risen by nearly ten million since the early 1960s. The number of households in the UK has increased from 16.7 million in 1961 to 26.6 million in 2009, according to Halifax estimates. Over the same period, the UK population has grown by 9 million from 52.8 million to an estimated 61.8 million in 2009.”

    …so over the past 50 years housebuilding has, on average, kept up with population growth to the tune of 1 house per extra person?

    Please, someone correct me if I am interpreting this wrongly, but that absolutely flies in the face of anyone who claims that short supply and therefore excess demand has justified a 273% price increase!

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  • mark wadsworth says:

    HB, it depends on how you define “household”. If you assume “Everybody living within the same four walls” is a household, then by definition the number of households as equals the number of homes (plus or minus a bit). NB, 9 million divided by 50 = 180,000 a year, an increase in housing stock of rather less than one per cent a year against an economy that is supposedly growing by well over three per cent in the long run.

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  • Grumpy Middle-aged Git says:

    HB,

    You must also bear in mind the huge number of conversions that have occurred since the ’80’s where decent-sized family homes have been turned into considerably smaller flats or maisonnettes. Presumably a four-storey terrace turned into 4 flats represents a quadrupling of our housing stock!!

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  • It’s a bit strange that they compare hp with RPI that already has hpinflation included thereby “inflating inflation”

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