House prices set to rise for the next 50 years
House prices set to rise for the next 50 years and outstrip incomes even further, warns ex-Bank of England economist
UK house prices are set to soar over the next 50 years while the average income won’t keep pace, putting home ownership out of reach of millions.
Professor David Miles, a former member of the Bank of England’s monetary policy committee, says the shortage of housing and a restriction on the availability of land in the UK will mean house prices keep spiralling upwards for decades to come.
Speaking at an event in Westminster this week, Miles revealed analysis showing that ‘extraordinary’ house price inflation over the past 30 years was likely to continue for the next 50 years.
Worse, he warned that median salaries in the UK were unlikely to keep pace with rocketing house prices, putting home ownership even further out of reach for aspiring buyers.
He said: ‘UK house prices have not just gone up relative to the price of things we buy but also relative to incomes. Whichever way you cut it, it’s been an extraordinary period of rising house prices.