Sometimes, when I think of the “Great Reset” that the IMF said we are going through, I think of the electrical reset done in the original “Jurassic Park” movie:
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COVID caused businesses to ramp up debts. Now we as the consumer are being made to pay for these negative cash flows that most corporations run on is my take. Stocks plummeted too, which would have mean we the public in theory had more savings but that’s only applies for the wealthy
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I would say technology is the cause. The more products it gets involved more the price is as it needs expertise and it reduces human efforts.
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Because wages are not consistent with the cost of living and house prices are too high.
House costs were 3x the average annual wage. So if you earned £20,000 per year, the house would of been around £60,000. Whereas now, we are still earning £20,000 per year in a lot of cases, and the average house price now is between £400,000 and £500,000. Now its 22x the average wage. Compared to the 3-4x the annual wage our parents had.
My parents bought an Edwardian House in 1990 for £40,000. Today the house is worth £520,000.
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The first house they bought was 45000 , that was in the 80s.
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Yep, and with a big recession just lurking on the horizons. A lot of people lost their homes. Ask your parents how the late 80s early 90s were for the mortgage game.
So the problem we have, today, is that house prices are ridiculously high, and no new affordable housing is being built. Gentrification is a huge issue too. We are in for a long struggle, if we intend to stay in our home areas. I think only a handful of folk from my area (my age dynamic) have remained. None own.
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I’m reading about the economics of this as a phenomena and truth be told - most economists have no clue, they have to get a feel for a market by reading into history and governance and then trading occurrences as well as technology advancements
It’s a hella exciting question lol academically speaking. but like we all know, a terrible experience when lived in reality 
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The cost of electricity and gas went up leading to the production cost and knockon of everything else going up.
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House price inflation is the back bone of the UK economy.
The fact that property is worth so much means the UKs assets are valued more highly.
If this was to lower then the government with its borrowing requirements and foreign investors would be able to exploit the UK even more, like it did for private utilities.
The Uk citizen also is highly dependent on a credit economy. There is a lot of debt in this country. The only assets most people have are in their artificially high house assets. If it were to fall then the sorry state would be catastrophic, perhaps not even a G7 member any longer.
This could be a reason for not increasing the housing stock, keeping demand high and supply low, just to maintain the asset value of UK land and property.
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My hometown has also gotten very expensive. I was looking at 1 bedroom apartments and for a nice one I like you have to count on €500K.
It’s something I only could buy if my parents helped or if I was back able to have a good paying job.
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