Every so often, a piece of research comes along which is a must-read. A document yesterday from the Institute of Economic Affairs is one such report: it reveals in no uncertain terms why house prices are so high in the UK, and what needs to be done to ensure that generations of young people are not permanently priced out of the market or forced to live in tiny, uncomfortable spaces.
All parts of the UK are expensive. Even some highly sought-after North American locations such as Washington DC and Chicago are cheaper, relative to earnings, than any region in the UK. Only Australia shows a similar lack of inexpensive housing. The picture is even worse if homes are adjusted for size or age – the UK’s stock is older and much smaller than many other nations’.