Robert Colvile: Housing costs as a share of income tripled since 1957

Robert Colvile: Housing costs as a share of income tripled since 1957
Housing costs outpace income growth

Housing costs as a percentage of income have increased sharply from 10 percent in 1957 to 30 percent or more, according to Robert Colvile. He notes that the country is 6.5 million homes behind the European average and argues that evidence from countries with similar interest rates but higher rates of housebuilding provides a clear picture of the situation.

Colvile’s comments refute a claim about housing affordability, asserting that rising costs and a shortage of homes are pressing issues compared to European benchmarks.

Colvile has previously highlighted a gap between government and industry estimates for business admin costs, with tax policy figures reported higher in earlier commentary. He also cited tensions between regulatory reform and growth objectives at a recent FCA event, as discussed in his recent analysis. These comments add further context to his critique of the current state of the UK housing market.

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