Mean house prices between 1985 and 2018, in real (RPI-adjusted) terms (2018 pounds)
We’ve been making this point for years. Now there is a paper from the Bank of England making the same argument.
It’s a bit technical, but if you wish to read it, the link is in the following comment on the paper:
Click here to read the article.
As the author of the comment says:
“My question is why this point is almost never made in the popular discourse on the house price problem? One answer is that housebuilders have a vested interest in suggesting a dire need for more housebuilding, in part because it adds to pressure on governments to free up greenfield sites. This is exactly what has happened since 2010. There is nearly always a vested interest in perpetuating incorrect economic explanations.”