UK house prices are “stagnating”, having declined in the last three months; it's the first quarterly fall since being on the cusp of the double-dip recession in 2012.
The days of the credit crunch can seem to be well and truly behind us. 2016 was the second successive year when bank lending to the economy was in positive territory – that is the total loans issued were greater than repayments. In total bank (net) lending in 2016 was £79bn, up from £39bn in 2015.
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."