The Economist: Our house. March 17th, 2014.
Why is that? Young Britons are gradually priced out of the property market. House prices grow because money supply grows. Rising volume of money in the economy inflates property prices.
While the money supply in Britain has more than quadrupled since 1991, wages and salaries have not.
Is there a remedy? Certainly not rent controls as recently proposed by Ed Milliband. If I had the chance, I would advocate a more conservative monetary policy. Inflating the out-of-the-thin-air money supply doesn't help the economy. Also, property prices should have an adequate weight in the Consumer Price Index.