A new report by the Institute for Fiscal Studies (IFS) shows that people in their early 30s are half as wealthy as people of the same age ten years ago.
“Property better investment than pensions”, says Bank of England’s chief economist – but what about the housing crisis?
The chief economist of the Bank of England, Andy Haldane, has recently claimed that property is a better investment for retirement than a pension. As long as the Bank of England continues on its current policy path this will most certainly be the case – with even more inequality and higher house prices to boot.
"We have an economy that relies on house prices getting higher and higher whilst wages have been stagnating and savings depleted. One of the reasons for this is monetary policy that results in maintaining asset price bubbles including housing."
New data shows that growth in house prices is outpacing growth in wages. However, reports suggest that low interest-rates are making housing in the UK more affordable. Is housing really more affordable, or are there some missing pieces to this analysis of the UK housing puzzle?