This press release sums up everything that’s wrong with the UK’s house price obsession
If there's a blindspot in the UK's collective understanding of economics – house prices is certainly it.
In no other area would we so excitedly greet news of rising prices. That public relations officers feel we should want to applaud news of house prices well above their pre-crisis high is an insult.
"Like chinks of sunlight, house price growth is breaking out across the whole country", says estate agent's press release. Wonderful
— Daniel Knowles (@dlknowles) February 18, 2014
Just imagine: "Like chinks of sunlight, petrol price growth is breaking out across the country", says PR on behalf of Shell/BP/etc
— Daniel Knowles (@dlknowles) February 18, 2014
We should want the prices of things to fall, as we find more productive ways to provide goods and services.
That house values aren't falling and that their rise is so persistent, is a very bad sign. That price growth reveals the government imposed bottlenecks on more building.
Tight planning rules keep supply well below the UK's present needs, and lock many first time buyers out of the property market entirely. Let's start celebrating when those regulations are loosened, and homes become more affordable, not the reverse.