Inflation is Inflating
A very good front page in today’s Telegraph, pointing out that the real rate of inflation is much higher than the headline figure. For people in their 20s and 30s, of course, inflation has long been raging as far as house prices are concerned. A lack of supply and huge demand, fuelled by cheap money, has pushed many homes out of the reach of first time buyers. And pensioners have been hit hard by council tax rises and the increase in utility prices. This is a really important issue - we may have to have a much more sophisticated approach than simply relying on the headline rate of inflation.
simon said on December 5th, 2006 at 11:55 am:
What really irritates me is the debate regarding ‘first time buyers’. A lot of people on low wages (under £15k) a year are not in a position to become a first time buyer (or indeed , a first time renter). Since a certain party sold off the majority of council housing - without replacing- wringing hands and saying ‘oooh, interest rates are up’ does not cut the mustard. The situation regarding the inability of a mass of people to get housing ( in particular areas) has been going on for at least 20 years! The Conservatives better not try and sweep this problem under the carpet in their next election manifesto.