Economics class: Beware the property trap ensnaring young buyers
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Demand and supply, Aggregate Demand, Inflation, Subsidies
Click to read the article below and then answer the questions:
Using the first three paragraphs of the article, explain the wealth effect
Using a diagram, explain how the relaxation of affordability limits on mortgages will put upward pressure on house prices
What economic arguments would suggest that the £450,000 LISA limit should rise?
Use a diagram to explain how the government is “effectively subsidising property developers” in London through the Help to Buy equity loan
David Dike, Economic Research Council — Economic Episodes