TO HELP readers understand Britain's bubbly housing market, we have assembled a list of charts .
The chart below is taken from the Bank of England. It's a very rough estimate, which I have adjusted for inflation. The trend is quite clear: in the last forty years, house prices have increased rapidly. (You can find similar trends in data from Nationwide, a building society; inflation-adjusted house prices have soared in recent years.)
What explains this? The most obvious culprit is a lack of supply. The chart that any watcher of the British housing market knows off by heart is the following, which shows the construction of new dwellings since 1970. In recent decades the public sector has got out of the way; these days very little local-authority housing is built.
However, this chart does...Continue reading
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