Guest comment piece by Nan Tewari
If we look at the data, [...]. Housing stock levels have consistently risen at a higher rate than population growth even in the past couple of decades, and even in London. So, according to the laws of supply and demand, if houses were a simple consumer good, prices should have fallen – obviously not the case.In the 1930s a typical three bed house was just 1 and a half times the average annual salary. By 1997 the average house price was 3.6 times the average salary. But in just twenty years that has more than doubled to nearly 8 times, and in London an ‘affordable’ home is 13 times first-time buyers’ salaries.