Month: January 2007

WHAT makes a country rich? Reading British newspapers, the impression one could get is that ever-rising property prices contribute a great deal to our economic prosperity. House-price increases are usually reported as a good thing, but this is something that worries us a lot when they stagnate or even fall. But what do high house prices, and indeed high land prices, mean for the economy as a whole?

It is time to change our attitude to high land and house prices. What we should strive for is price stability at the very least. This would strengthen our economic competitiveness, and future generations of first-time buyers will thank us – if national politicians ever have the courage to stop feeding the craving of the middle class for exponentially increasing house prices.