Has easy credit been driving house prices?

We estimate that without the relaxation in credit conditions, average house prices would have risen by a cumulative 19% since the end of 2003. In fact, the Nationwide house price index reports that they have risen by 37% over this period. In other words, looser credit conditions can explain about half of house price growth over the last four years.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.