Rolling Four Quarter New Dwelling Sale Price and Household Income of
Borrowers in London, England, 1993-QI through 2014-QI
E450,OOO
E400,OOO
E350,OOO
EOO,OOO
E250 000
z
E200,OOO
< E150,ooo
EIOO,OOO
E50,OOO
Sou rce:
No Housing Bubble for High Income Buyers
Typical "stair-step" pattern of new dwelling prices
rising and falling with economic conditions and
household incomes of house buyers (borrowers) •
"stair stepping" effect is caused by new dwelling
prices and incomes not being in "sync" with each
other. Rapid growth in housing prices then is
likely being amplified by supply constraints.
2011-Q3
y = 65686
0.983
2010-Q3
2010-QI
y = 3.9719x+ 14568
Y = 4.261x- 36756
= 0.9762
EIO,OOO E20,OOO EO,OOO E40,OOO E50,OOO E60,OOO E70,OOO E80,OOO
Trailing Year Average Income of Borrower (Home Purchaser)
E90,OOO
EIOO,OOO
http://www.onsgov.uk/ons/rel'hpi/house-price-index/apri1-2014/rft-monthIy-and-qtly-apri114As:
Table 15and Author's Calculations
O Political Calculations 2014
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