Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "UK House Prices: No real growth for 20 years!" video.

  1. You don't understand how inflation works. Inflation reduces purchasing power, and to discover how much inflation has eroded valuations, you compare relative valuations over time less inflation. Just 40 years ago, one could buy a sliced loaf, a pint of milk, and a tub of marg for £1. You can't do that today. That's down to inflation. Likewise, house prices can't avoid the same process. Inflation as measured by CPI is arguably lowballing the impact as well. If RPI was used, the slump in real prices would be even deeper. And it's a Cantillon effect, where the closer one is to the process of money creation, the wealthier one is. Houses don't create money. Lending money to people to buy houses does. So so whoever owns debt in the economy is getting wealthier, but not the debtors.
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