Azara Blog: Surprise, house prices have gone crazy the last decade

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Date published: 2008/01/12

The BBC says:

The value of the UK's private housing stock rose by an estimated 9% in 2007 to reach £4 trillion, says the Halifax.

That figure has more than tripled over the last decade, rising by 208% from £1.3 trillion recorded in 1997.

In contrast, the headline rate of inflation (RPI) has increased by 31% over the same period.

Despite fears about slowing UK property prices, the bank says the housing stock is worth more than three times the country's outstanding mortgage debt.

It says housing assets have grown by more than mortgage debt levels in every year since 1995.

Well it's pretty clear that UK property prices are vastly over-inflated. So the numbers are soon set to take a tumble. Who knows, in a few years the housing stock might have fallen back to a "value" of 3 trillion pounds or even less.

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