Figures released today show that the price of a typical home declined by 0.1 per cent between March and April, but was 0.9 per cent higher than April 2012. The Nationwide House Price index shows that the typical cost of a UK home is £165,586 (release).
ONS figures released last November showed that in the year to April 2012, average full-time earnings stood at £26,500. The typical home price is well in excess of six times average full-time annual pay. Economics professor Nicholas Crafts suggests that liberalising planning could create growth and solve our housing crisis:
A house building-led recovery, stimulated by de-regulation rather than fiscal largesse, seems attractive to many economists. Unfortunately, the politics looks very different. Unless a way can be devised to achieve a major liberalisation of land-use planning, without losing swathes of votes in the South-East, this is a non-runner. “Cheap money” today would raise house prices rather than the construction of houses.