Why exactly is it so expensive for us to own a home? | | Independent Econoblog Blogs

Why exactly is it so expensive for us to own a home? | | Independent Econoblog Blogs
An average three-bed house cost £2,000 in 1952. In 2012 it costs £162,000. That’s an inflation of 8,000%. Have you ever wondered – I mean really wondered – why this is the case?
It’s a staggering increase. Perhaps we can put it into perspective by looking at how the prices of other commodities have risen over a similar period of time. Using figures from a survey by Moneywise, the average cost of a loaf of bread in 1952 was 6p. In 2012 it is £1.25. That’s an inflation of 1,983%. Likewise an average pint of milk was 4p in 1952 and is now 49p. That’s an inflation of 1,125%. A dozen eggs cost on average 8p back then and £1.68 nowadays. That’s a 2,000% rise.