Thursday, February 7, 2013
HPC was naive to think there would be a proper crash
Some number crunching that illustrates why property is a bit different from manufactured goods or services: "A carton of milk would set a family back by Â£10 and a roast chicken would have a Â£51 price tag if food costs had risen in line with house price increases over the last 40 years, research by Shelter has found. The charity said that the typical value of a house had increased by just over 43 times since 1971, from Â£5,632 to Â£245,319." Unsurprisingly, there is no clue in the piece about the role of bank credit or our tax system that favours property speculation but we should be used to that by now.