There’s an interesting conversation happening on twitter over a graph that shows the inverse relationship between [London] house prices (growing) and interest rates (falling) from 2004 - 2020
The simple, and obviously relevant, conclusion is that the lower rates are driving the prices up, particularly as investors switch away from investing in stock markets (that have crashed twice in that time) and into property.
However, I also came across this interesting analysis of how certain types/sizes of properties have been disproportionately affected - and that is the larger family homes.
If we are to make sensible plans, and lobby for assistance so more young people can afford to own a property, then it might help to have a better understanding of what else might be happening.
One interesting conclusion is that there was also a big population increase over that time, leading to overcrowding. If we do all work from home more from 2021, then maybe this pressure will reduce and help prices while rates are still low.
Anyway, do take a read and share your thoughts