Monday, 2 April 2007

UK House prices, corrected for inflation

Even for adjusting for inflation, UK house prices have inflated way beyond their long term trend growth.

In inflation-adjusted terms, UK housing in 1995 was no more expensive than it was in 1975. However, since then, house prices have exploded. Currently, UK housing is about 2.5 times more expensive in real terms compared to 1975, or for that matter, 1995.

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