Tuesday, January 24, 2006

House Prices

One of the primary results of the distorted pattern of land ownership in the UK has been that house prices have been much higher than they would otherwise have been. Given that house ownership has been perceived as a source of wealth, it is hardly suprising that politicians have been reluctant to challenge the rigged market.

However, as the link above shows, in fact what has happened is an increasing volatility in the housing market, and that we are now standing at an historically high ratio of average earnings to house prices. As Housepricecrash.co.uk shows, this is probably not sustainable. The time may therefore be coming soon when action can be taken to tackle the pattern of distorted land ownership, and by bringing more land into taxation, to improve the balance and pattern of land use.


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