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Master Program Applied Economics at the Faculty of Economics and Statistics of the University of Innsbruck

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Master Program Applied Economics at the Faculty of Economics and Statistics of the University of Innsbruck

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Some observations need to be made regarding the FSA findings. The average price of homes in the U.K. from £ 137,273 in Q2 2002 to £179,170 in Q2 2012 reflects a nominal price development. If one corrects these prices on basis of U.K inflation levels over this period, than the conclusion is that over this decade nothing extraordinary has happened: house prices have just kept up with U.K. inflation levels and nothing more than that. Of course the period of 2002-2007 showed rapid value changes, but the correction has taken place over the period 2007-2012. A study based on...

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