Who's behind the bubble? According to a recent myth, it's not the Bank of England, and its low interest rate policies. Nor is it myopic building societies prepared to extend mortgages up to five times income. According to many, we need to look overseas for the culprits. It is the Russians and all their dirty oil money. Apparently, they are coming over here and buying up all our houses, and forcing us to move to France or Spain.
However, I have a problem with this story. Certainly, Russian money might explain why houses in Kensington have appreciated rapidly. It hardly explains why prices have risen in Harrow. It certainly doesn't explain why prices are rising in Middlesbrough.
So let us hear no more of filthy rich Russians and concentrate our thoughts on the true culprits. We should start with the Bank of England, building societies, buy-to-let idiots and above all, ourselves and our ridiculous beliefs about housing.
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