Economists: House prices to hit 15 times the average income

1st September 2017

Two leading economists have warned that climbing house prices could see the average value hit 15 times the average income. Imperial College professor David Miles, a former member of the Bank of England's Monetary Policy Committee, and colleague James Sefton have published a report saying the cost of housing relative to wages will rise by about 40% over the next 50 years, adding: “over the 50 years after that, housing costs double relative to wages.” The report, published by the Centre for Economic Policy Research, suggests that renting may become far more prevalent, with more people owning small stakes in homes through pension funds.

The Mail on Sunday (27/08/2017)