Economics class: UK homeowners secure £800bn windfall with house price rise
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Aggregate Demand, The distribution of income and wealth, Monetary policy, Market failure
Click to read the article below and then answer the questions:
What have been the main causes for the increase in house prices last year?
What is meant by the wealth effect?
Explain the significance of gross median pay for workers in the UK increasing by only 26%, compared to the value of UK housing increasing by 75.7%
Despite London and the South East experiencing the lowest gains in the value of housing stock, there is still a large gulf in average house prices between London and the south-east and the rest of the UK. Explain the consequences of these regional differences
To what extent should the government intervene in the housing market?
Declan Danaher, St George’s Weybridge