2016-11-16independent.co.uk

Soaring house prices and plummeting home ownership rates in the UK have not been primarily driven by a lack of new housing construction, a Labour party-commissioned review has found, contradicting conventional wisdom on the nature of the housing crisis.

The Redfern Review, published today, states, instead, that the biggest drivers of the large increase in house prices over the past two decades have been rising incomes and falling interest rates. And, more recently, a lack of mortgage finance availability for first-time buyers and the weakness of this group's income growth has been mainly responsible for the slump in the home ownership rate.'

Amazing that this kind of malarkey is still going around and has to be debunked -- the "conventional wisdom" that more homes needed to be built and that interest rates being artificially low had nothing to do with demand in the U.S. housing bubble of the 2000s was one of the major exacerbating factors (leading to vastly more pain in the crash).



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