UK’s Fake Housing Market Makes Fake Millionaires

UK’s Fake Housing Market Makes Fake Millionaires
by Graham Vanbergen • September 3, 2015

[font color="blue"]Even banks are fretting about record high household debt.[/font]

By Graham Vanbergen, United Kingdom, TruePublica:


“One in 65 people is now worth seven-figures after surge in the price of property and stock markets” the newspapers have been crowing. “The number of British millionaires has shot up by 40 per cent in the past five years”.

We are all being led to believe that a “Surge in property prices and stock markets means there are now 715,000 millionaires in the UK alone”. Not only does this make the other 63,385,000 feel left out of this boom in inequality, it is also inaccurate, misleading and bathed in exaggeration.

The truth is that this is a UK mainstream media campaign instigated by a government with no new policy ideas to get the British economy working hard for everyone. To fill the void, an illusion of greater prosperity is constructed.

UK house prices may have risen 3% over the last year. But the UK-wide rate is utterly meaningless, thanks to an already immense and ever expanding North/South divide. Property prices in The City of London and inside the M25 massively increase the average property price not just in England but the UK more widely. The numbers for these areas also distort the time taken the sell, cash sales, mortgage numbers and general availability.

Contrary to belief, the volume of actual sales has crashed by about 35 per cent in just 4 years and 40 per cent in 8 years and that number is quite likely to increase over the next year or two to 50 per cent. .................(more)

http://wolfstreet.com/2015/09/03/uks-fake-housing-market-makes-fake-millionaires/