House price gap

Forecasts seem to me to be a necessary evil in life. At first sight, something looks wrong with the OBR figures for London house prices presented by David Graeber in the Guardian today. However, they’re basically assuming that average national house price growth of 5% per annum for the UK will also occur in London – albeit it is labelled as implicit. So the average house price in London is projected  to grow by approximately around 30% over the whole period leaving the average house price in London growing from somewhere over £400,000 to somewhere over £600,000. Something still looks wrong – but I don’t really want to get into house price forecasting.

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