House prices are likely to stay at high levels and
potentially keep on rising over the coming decades, as big economic and
demographic trends show no sign of letting up, according to a former Bank of
England policymaker. Prices have rocketed far ahead of incomes since the 1970s
and the gap is not expected to close, said David Miles, now a professor at
Imperial College London. Population growth, combined with the scarcity of
housing, is one factor driving in rises. Until the 1970s improved transport
systems allowed more people to commute longer distances into cities for work,
effectively opening up more land to use for housing - but that process ground
to a halt, constraining available land and driving up prices. Read more on the
Daily Telegraph website.
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