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Rent or buy? The challenge of access to housing
Rent or buy? The challenge of access to housing

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2 Are house prices too high?

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Figure 1 Are prices too high?

If young people and those on low income more generally are being priced out of the housing market in the UK, does that mean prices are too high? And what about house prices in other countries?

Property is often treated as an investment (a source of potential gains or profits) and not just as a place to live. This can create tension between different types of household: rising prices can make it difficult for people to buy their first home, but are welcomed by those who already own a home and so have an investment that is rising in value.

Therefore, different households may have different views about what ‘too high’ means. In this section, you will look at how we might evaluate house prices in a meaningful way.