The Daily Telegraph highlights a report by Shetler indicating that house prices have risen by 43 times since 1971. This is over six times the rate of inflation for basic weekly groceries in the same period.
The report comes with the usual train of interesting factoids:
The charity said that the typical value of a house had increased by just over 43 times since 1971, from £5,632 to £245,319.
If a family’s weekly shop had increased at the same rate, it would now stand at £453, which is six times the actual figure of around £75.
Applying the house price rate of inflation to everyday food and drink items means that a bunch of six bananas would cost £8.47, a four-pint carton of milk would cost £10.45 and a leg of lamb would be £53.18, Shelter said.
Another recent Telegraph story pointed out that home ownership in the UK has now fallen to levels last seen in 1987. The level of renting from council and other social landlords has fallen dramatically In other words, the long-term effect of the policy of right-to-buy for council tenants and deliberately stoked house price inflation has been a singificant move of people, especially younger and poorer people, out of the social rented sector and into the private rented sector. As anyone who lives on a council estate knows, that usually means younger families living in identical houses on the same estates as their parents, except at higher levels of rent, with less security of tenure and often with poorer maintenance.
Cui bono is always the first question worth asking in politics. Who has benefited from the shift in housing policy away from being principally about providing a decent home for all towards being principally about providing a high-value asset for home owners?