Modelling done by a Treasury analyst concludes that while house price growth increases the divide between people who do and don’t own houses, it decreases inequality overall. The research "surprisingly" found a 10% increase in house prices decreases wealth inequality across the population. So, a house price rise gives the homeowning middle class a chance to catch up with the wealthy. It isolated house price inflation and considered its effects alone. So, it isn’t yet possible to directly measure the impact of recent rampant house price inflation.

Source: Stuff November 17, 2021 08:31 UTC